Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 174

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 174
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 Jurchen Investment Corporation, the largest shareholder of the Company, pursuant
to which the Company sold a secured convertible note in the aggregate principal amount of $3,000,000 (the “Sep 2023 Notes”).
The Sep 2023 Notes are convertible into the Company’s Class A Ordinary Shares and have a maturity date that is 24 months from the
issuance date, although upon such date the investor has the right to extend the term of the Sep 2023 Note for twelve (12) months or more
or such term subject to mutual consent. The Sep 2023 Notes have an interest rate of 6% per annum and a conversion price of $2.42 per share.
The Company has the right to repay the principal amount of the Sep 2023 Notes, but in the case of such prepayment it must be paid in cash,
unless otherwise agreed by both parties. The Sep 2023 Note is secured by a first priority lien and security interest on certain shares
that the Company owns (“Collateral”). Upon the Company’s disposal of all or a portion of the Collateral, the investor
has the right, to request that the Company prepay the then-remaining outstanding balance of the Sep 2023 Note, in part or in full and
the Company can make that payment in cash or in shares. The principal outstanding amount as of the date hereof is $3,000,000.

Legal Proceedings

On December 16, 2024, the
Company received a letter from Carey Olsen with a Summons with Notice dated September 3, 2024, taken out by Karen Cheung (a/k/a Wing TSZ
Cheung) as plaintiff against, among others, the Company as defendant in the Supreme Court of the State of New York County of New York,
in relation to an action to recover financial losses sustained by the plaintiff (the “Case”). The Case is at the very early
stages of litigation and although we intend to defend the lawsuit, there can be no assurance regarding the ultimate outcome of this case.
Due to the inherent uncertain nature of litigation, the ultimate outcome or actual cost of settlement may materially vary from estimates.
If management’s estimates prove incorrect, current reserves could be inadequate and we could incur a charge to earnings which could
have a material adverse effect on our results of operations, financial condition, net worth, and cash flows.

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Factors Affecting Company’s Results of Operations</div>

Research and