Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 47

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 47
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 commercial partners and vendors may engage in misconduct or other improper activities, including non-compliance with regulatory
standards and requirements.

We are exposed to the risk
of fraud, misconduct or other illegal activity by our employees, independent contractors, consultants, commercial partners and vendors.
Misconduct by these parties could include intentional, reckless and negligent conduct that fails to: comply with the laws of the FDA and
other similar non-U. S. regulatory authorities; provide true, complete and accurate information to the FDA and other similar non-U. S. regulatory
authorities; comply with manufacturing standards we have established; comply with healthcare fraud and abuse laws in the United States
and similar non-U. S. fraudulent misconduct laws; or report financial information or data accurately or to disclose unauthorized activities
to us. If we obtain the FDA approval for any of our drug and diagnostics technology candidates and begin commercializing those drugs in
the United States, our potential exposure under U. S. laws will increase significantly and our costs associated with compliance with such
laws are also likely to increase. These laws may impact, among other things, our current activities with principal investigators of our
sponsored researches and research patients and our use of information obtained in the course of patient recruitment for clinical trials,
as well as proposed and future sales, marketing and education programs. In particular, the promotion, sales and marketing of healthcare
items and services, as well as certain business arrangements in the healthcare industry, are subject to extensive laws designed to prevent
fraud, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing,
discounting, marketing and promotion, structuring and commission(s), certain customer incentive programs and other business arrangements
generally.

It is not always possible
to identify and deter misconduct by employees and other parties, and the precautions we take to detect and prevent this activity may not
be effective in controlling unknown or unmanaged risks or losses, or in protecting us from governmental investigations or other actions
or lawsuits stemming from a failure to comply with these laws or regulations. If any such actions are instituted against us, and we are
not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including
the imposition of significant fines or other sanctions.

Our disclosure controls and procedures may
not prevent or detect all errors or acts of fraud.

Our disclosure controls and
procedures are designed to reasonably assure that information required to be disclosed by us in reports we