Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 104

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 104
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 firms headquartered in mainland China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed
by the SEC, the PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered
ability to transfer information to the SEC. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete
access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate
its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s
access in the future, the PCAOB Board will consider the need to issue a new determination.

The Company now focuses all of its efforts on R& D and therefore
no longer performs any therapeutic services. While the Company may commence therapeutic services in the future, as of December 31, 2024
and the date hereof, it only operates in one segment.

Cash Transfers and Dividend Distribution

Our management is directly
supervising cash management. Our finance department is responsible for establishing the cash management policies and procedures among
our departments and the operating entities. Majority of the cash are managed by a few of the subsidiaries of Aptorum Group. Each department
or operating entity initiates a cash request by putting forward a payment requisition form, which explains the specific amount and timing
of cash requested, and submitting it to designated management members of our Company, based on the amount and the nature of payment. The
designated management member examines and approves the cash transfer based on the sources of cash and the priorities of the needs, and
submit it to the cashier specialists of our finance department for a second review. Other than the above, we currently do not have other
cash management policies or procedures that dictate how funds are transferred.

We are permitted under the laws
of Cayman Islands to provide funding to our subsidiaries through loans or capital contributions without restrictions on the amount of
the funds.

As of the date of this annual report, neither our VIE nor any of our
subsidiaries have made any dividends or distributions to our Company and our Company has not made any dividends or distributions to our
shareholders. We intend to keep any future earnings to finance the expansion of our business, and we do not anticipate that any cash dividends
will be paid in the foreseeable future. Subject to the passive foreign investment company (“ PFIC”) rules, the gross amount
of distributions we make