Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 66

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 66
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 that we are not the primary beneficiary of Libra. As a result, Libra’s
financial results are not consolidated in our consolidated financial statements. If, in the future an affiliate company becomes a VIE
and we become the primary beneficiary of it for accounting purposes, we would be required to consolidate that entity’s financial
results in our consolidated financial statements. If we become the primary beneficiary of Libra and have to consolidate them into our
consolidated financial statements, Libra and such entity’s financial results were negative, this could have a corresponding negative
impact on our operating results.

The economic substance legislation of the
Cayman Islands may adversely impact us or our operations.

The Company is subject to
Cayman Islands economic substance legislation (“ ESA”) requiring that where the Company carries on a relevant activity (as
defined in the ESA) it must maintain economic substance within the Cayman Islands, including adequate premises and employees within the
Cayman Islands. As an entity subject to the ESA, the Company is required to assess its operations to determine the required compliance
(if any) with the ESA, to file an annual notification with the Cayman Islands Registrar of Companies disclosing whether the Company is
carrying out any relevant activities within the meaning of the ESA and an annual return with the Department of International Tax Co-Operation.
Where applicable, the Company must establish that its operations satisfy the economic substance requirements of the ESA. The Company is
required to monitor its operations to ensure it remains in compliance with all requirements under the ESA. Failure to satisfy these requirements
may subject the Company to penalties under the ESA.

Risks Related to our Securities

If we fail to comply with the continued
listing requirements of NASDAQ, we would face possible delisting, which would result in a limited public market for our shares and make
obtaining future debt or equity financing more difficult for us.

On February 8, 2023, the Company
received a deficiency letter from the Nasdaq Listing Qualifications Department (the “ Staff”) of the Nasdaq Stock Market
LLC (“Nasdaq”) notifying the Company that the Company does not meet the minimum Market Value of Publicly Held Shares
(“MVPHS”) of $5,000,000 for the previous 30 consecutive business days. The Nasdaq deficiency letter has no immediate
effect on the listing of the Company’s Class A Ordinary Shares, and its Class A Ordinary Shares will continue to trade on The Nasdaq
Global Market under the symbol “ A