Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 143

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 143
---
 were identified in relation to its lack of in-house expertise related to U.S. GAAP, as well as the absence of comprehensive
written control policies, or an internal audit function to ensure its internal controls are properly designed and implemented. There is
also a lack of segregation of duties in financial reporting, and DiamiR does not have an audit committee. These material weaknesses are
due to DiamiR’s lack of working capital to hire additional staff. At its present state of development, DiamiR currently lacks the
resources necessary to put in place such controls and procedures or to effectively monitor certain functions related to its controls and
procedures. To date, DiamiR has relied on third-party consultants to supplement its financial reporting and controls and procedures.

Given that DiamiR has been
operating as a private company, it did not have the necessary formalized processes to effectively implement review controls within its
internal control over financial reporting.

If DiamiR fails to implement
any required improvements to address any material weaknesses in its internal control over financial reporting, such material weaknesses
could result in inaccuracies in its financial statements and could also impair its ability to comply with applicable financial reporting
requirements and related regulatory filings on a timely basis.

The elimination of personal liability against DiamiR’s directors and officers under Delaware law and the existence of indemnification rights held by its directors, officers and employees may result in substantial expenses.

DiamiR’s bylaws (“Bylaws”)
provides that it is obligated to indemnify each of its directors or officers to the fullest extent authorized by Delaware law. Those indemnification
obligations could expose DiamiR to substantial expenditures to cover the cost of settlement or damage awards against its directors or
officers, which it may be unable to afford. Further, those provisions and resulting costs may discourage DiamiR or its stockholders from
bringing a lawsuit against any of its current or former directors or officers for breaches of their fiduciary duties, even if such actions
might otherwise benefit its stockholders.

<div align='center'>67</div>

DiamiR’s principal stockholders and management own a significant percentage of its capital stock and are able to exert a controlling influence over its business affairs and matters submitted to stockholders for approval, including a change in its corporate control even if its other shareholders wanted it to occur.

Currently,
DiamiR’s executive officers, directors, and principal shareholders beneficially own, in the aggregate, approximately 84.9% of
its outstanding Common