Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 55

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 55
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 to foreign
currency exchange risk as our results of operations, cash flows maybe subject to fluctuations in foreign currency exchange rates. For
example, if a significant portion of our clinical trial activities may be conducted outside of the United States, and associated costs
may be incurred in the local currency of the country in which the trial is being conducted, which costs could be subject to fluctuations
in currency exchange rates. We currently do not engage in hedging transactions to protect against uncertainty in future exchange rates
between particular foreign currencies and the U. S. dollar. A decline in the value of the U. S. dollar against currencies in countries in
which we conduct clinical trials could have a negative impact on our research and development costs. Foreign currency fluctuations are
unpredictable and may adversely affect our financial condition, results of operations and cash flows.

Our investments are subject to risks that
could result in losses.

We had cash and cash equivalents
of $0.88 million, $2.01 million, and $1.88 million as of December 31, 2024, 2023, and 2022, respectively. We may invest our cash in a
variety of financial instruments. All of these investments are subject to credit, liquidity, market and interest rate risk. Such risks,
including the failure or severe financial distress of the financial institutions that hold our cash, cash equivalents and investments,
may result in a loss of liquidity, impairment to our investments, realization of substantial future losses, or a complete loss of the
investments in the long-term, which may have a material adverse effect on our business, results of operations, liquidity and financial
condition. While we believe our cash position does not expose us to excessive risk, future investments may be subject to adverse changes
in market value.

We are exposed to risks associated with
our computer hardware, network security and data storage.

Similar to all other computer
network users, our computer network system is vulnerable to attack of computer virus, worms, trojan horses, hackers or other similar computer
network disruptive problems. Any failure in safeguarding our computer network system from these disruptive problems may cause breakdown
of our computer network system and leakage of confidential information of the Company. Any failure in the protection of our computer network
system from external threat may disrupt our operation and may damage our reputation for any breach of confidentiality to our customers,
which in turn may adversely affect our business operation and performance. In the event that our confidential information is stolen and
misused, we may become