Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 87

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 87
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| ● | improving our operational, financial and management controls, reporting systems and procedures.                                                                                                                                                                                |

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As we refine our operational
strategy to streamline operations, we have adjusted our employment model. The company has shifted from a direct employment approach to
outsourcing key functions, including research and development and back-office operations. While this allows for greater focus and flexibility,
it also introduces dependencies on third-party vendors, which may present new risks related to quality control, data security, and operational
continuity that we are actively managing.

Our future financial performance
and our ability to commercialize our drug candidates will depend, in part, on our ability to effectively manage our future growth, and
our management may also have to divert a disproportionate amount of its attention away from day-to-day activities in order to devote a
substantial amount of time to managing these growth activities.

We currently rely, and for
the foreseeable future will continue to rely, in substantial part on certain independent organizations, advisors and consultants for significant
input in selecting and evaluating new products to pursue. These independent organizations, advisors and consultants may not continue to
be available to us on a timely basis when needed, and in such case, we may not have the ability to find qualified replacements. In addition,
if we are unable to effectively manage our outsourced activities, or if the quality or accuracy of the services provided by consultants
is compromised for any reason, our clinical trials may be extended, delayed or terminated, and we may not be able to obtain regulatory
approval of our drug candidates or otherwise advance our business. Furthermore, we may not be able to manage our existing consultants
or find other competent outside contractors and consultants on economically reasonable terms, if at all.

If we are not able to effectively
expand our organization by hiring new employees, outsourcing works or expanding our groups of consultants and contractors, we may not
be able to successfully implement the tasks necessary to further develop and commercialize our drug and diagnostics technology candidates
and, accordingly, may not achieve our research, development and commercialization goals.

We intend to seek additional collaborations, strategic alliances or acquisitions or enter into royalty-seeking or sublicensing arrangements in the future, but we may not realize the benefits of these arrangements.

We intend to form or seek
strategic alliances, create joint ventures or collaborations, acquire complimentary products, IP rights, technology or businesses or enter
into additional licensing arrangements with unrelated parties that we determine may complement or augment our development and commercialization
eff