Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 411

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 411
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 has held shares of Aptorum’s shares and (ii) taxed as ordinary income that was earned in
each of the years to which it was allocated. The rate of tax on such income would be the highest rate of tax in effect for the category
of U.S. Holder during each such year. The tax imposed on income allocated to any prior taxable year would also be subject to an interest
charge that would accrue from the taxable year to which the income was allocated until the date that the tax due under the PFIC rules
was paid. However, any gain required to be taken into account under the Section 1291(f) regulations would be reduced by the amount of
any distributions pursuant to the Disposition that were also taxed under the PFIC rules.

The Proposed Regulations also
provide rules intended to coordinate the PFIC rules with the rules of Code section 367(b), discussed above under “Effect of Section
367 on the Domestication for U.S. Holders of Aptorum Shares”. Under these coordinating rules, if the gain recognition rule of the
Proposed Regulations applied to a disposition of PFIC stock that was also subject to the rules of Section 367(b) – because the foreign
corporation had an all earnings and profit amount -- the gain realized on the transfer would first be taxable under Section 1291(f) and
any gain not taxable under Section 1291(f) would then be taxable as provided under Section 367(b).

As with distributions pursuant
to the Disposition, The foregoing tax effects of PFIC status on the Domestication would be different if any U.S. Holder has, during his
ownership of Aptorum shares, made an election (a so-called “mark-to-market” election) to include in income for each of the
years that he has owned his Aptorum shares an amount of income representing the increase in the value of his shares during the year. Any
U.S. Holder who has made such an election should consult with his own tax advisor about the tax ramifications of having done so.

Aptorum intends to take the
position that it is not and has never been a PFIC with respect to any U.S. Holder but cannot provide any assurances that its position
will be upheld. The PFIC rules are complex and are affected by various factors in addition to those described above. Accordingly, U.S.
holders of Aptorum shares are urged to consult their own tax advisors concerning the application of the PFIC rules to their shares.

ALL U.S. HOLDERS