Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 65

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 65
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(c) of the NASDAQ Capital Market,
a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company”
and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of our
directors be independent, as defined in the NASDAQ Capital Market Rules, and the requirement that our compensation and nominating and
corporate governance committees consist entirely of independent directors. Although we do not intend to rely on the “controlled
company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future. If we elect to rely on
the “controlled company” exemption, a majority of the members of our board of directors might not be independent directors
and our nominating and corporate governance and compensation committees might not consist entirely of independent directors. Accordingly,
during any time while we remain a controlled company relying on the exemption and during any transition period following a time
when we are no longer a controlled company, you would not have the same protections afforded to shareholders of companies that are
subject to all of the NASDAQ Capital Market corporate governance requirements. Our status as a controlled company could cause our Class A
Ordinary Share to look less attractive to certain investors or otherwise harm our trading price.

We may not be able to consolidate the financial
results of some of our affiliated companies or such consolidation could materially adversely affect our operating results and financial
condition.

The Company has one VIE which is incorporated under the laws of Cayman
Islands and conducts operations in Hong Kong. The Company does not currently consolidate this VIE since the Group does not have a variable
interest in them and is not determined to be the primary beneficiary of it at this time under U. S. GAAP. This determination is based on
whether the Group has a variable interest (or combination of variable interests) that provides the Company with (a) the power to direct
the activities that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses or right to
receive benefits that could be potentially significant to the VIE. The Group continually reassesses whether it is the primary beneficiary
of a VIE throughout the entire period the Group is involved with the VIE. According to those standards, we determined that we do not have
the power to manage and make decisions that affect Libra’s research and development activities, which activities most significantly
impact Libra’s economic performance. Accordingly, we determined