Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 253

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 253
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 (“ Scipio”), issued Class A and Class B ordinary shares to various
parties; for each such entity, each Class A ordinary share is entitled to1vote and1share of economic benefit of the respective company,
while each Class B ordinary share is entitled to10votes and0.001share of economic benefit of the respective company. Following such
share issuances, the Group lost its majority voting rights in each of these three companies and only holds48.33%,48.39% and48.36% economic
interest in Libra, Mios and Scipio, respectively. However, the Group still holds a majority of each of these three company’s outstanding
Class A ordinary shares and therefore will absorb/receive portions of these subsidiaries’ expected losses or residual returns. In
addition, none of these three companies have sufficient equity to sustain its own activities, and they have two classes of ordinary shares
which have different rights, benefits and obligations. We determined that all these three companies are variable interest entities (“ VIE”).
On December 31, 2021, Libra, Mios and Scipio further issued Class A ordinary shares to the Group in exchange of certain projects licenses.
Upon these share issuances, the Group was holding97.27% economic interest and31.51% voting power in Libra,97.93% economic interest
and36.17% voting power in Mios, and97.93% economic interest and35.06% voting power in Scipio, respectively.

We have considered each of these entity’s
Memorandum and Article of Association and their respective board of directors (the sole director of each of Mios and Scipio is an executive
director of the Group), and determined that we have the power to manage and make decisions that affect Mios and Scipio’s research
and development activities, which activities most significantly impact Mios and Scipio’s economic performance. However, we do not
have such power over Libra’s research and development activities, which activities most significantly impact Libra’s economic
performance. Accordingly, we determined that we are the primary beneficiary of Mios and Scipio, but not the primary beneficiary of Libra.

In November 2024, the Group acquired10,000Class A Ordinary Shares
and5,850,000Class B Ordinary Shares of Scipio, achieving control over the entity. As a result of this acquisition, Scipio is no longer
classified as a VIE