Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 106

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 106
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 result of voting agreements, in his own interests, which may not always be in the interests
of our shareholders generally.

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As a “controlled company” under the rules of theNasdaq Capital Market, we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public shareholders.

Our directors and officers
beneficially own a majority of the voting power of our outstanding Ordinary Shares. Under the Rule 4350(c) of the Nasdaq Capital Market,
a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company”
and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of our
directors be independent, as defined in the Nasdaq Capital Market Rules, and the requirement that our compensation and nominating and
corporate governance committees consist entirely of independent directors. Although we do not intend to rely on the “controlled
company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future. If we elect to rely on
the “controlled company” exemption, a majority of the members of our board of directors might not be independent directors
and our nominating and corporate governance and compensation committees might not consist entirely of independent directors. Accordingly,
during any time while we remain a controlled company relying on the exemption and during any transition period following a time
when we are no longer a controlled company, you would not have the same protections afforded to shareholders of companies that are
subject to all of the Nasdaq Capital Market corporate governance requirements. Our status as a controlled company could cause our Class A
Ordinary Share to look less attractive to certain investors or otherwise harm our trading price.

We may not be able to consolidate the financial results of some of our affiliated companies or such consolidation could materially adversely affect our operating results and financial condition.

The Company has one VIE which
is incorporated under the laws of Cayman Islands and conducts operations in Hong Kong. The Company does not currently consolidate this
VIE since the Group does not have a variable interest in them and is not determined to be the primary beneficiary of it at this time under
U.S. GAAP. This determination is based on whether the Group has a variable interest (or combination of variable interests) that provides
the Company with (a) the power to direct the activities that most significantly impact the VIE’s economic performance and (b)