Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 171

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 171
---
 is well established with high credit rating.

Liquidity Risk

Liquidity risk is the risk
that the Group will encounter difficulty in raising funds to meet commitments associated with financial assets and liabilities. Liquidity
risk may result from an inability to sell a financial asset quickly at an amount close to its fair value.

Prior to 2017, the Group invested
in private equities which are generally unquoted and not readily marketable before its restructuring to an operating company. Investment
of the Group’s assets in unquoted securities may restrict the ability of the Group to dispose of its investment at a price and time
it wishes to do so.

Interest Rate Risk

Interest rate risk arises
from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments.

Interest rate risk sensitivity analysis

The Group’s cash deposits
and bank loan held with banks are exposed to interest rate risk. However, management considers the risk on cash deposits to be minimal
as they are short-term with terms less than one month.

With regard to interest rate
sensitivity on our bank loans, we present the sensitivity analysis below based on the exposure to interest rates for interest bearing
bank loans with variable interest rates as of December 31, 2024. The analysis is prepared assuming that those balances outstanding as
of December 31, 2024 were outstanding for the whole financial year. A 1.0% increase or decrease which represents the management’s
assessment of the reasonably possible change in interest rates is used. Assuming no change in the outstanding balance of our existing
interest bearing bank loans balances with floating interest rates as of December 31, 2024, a 1.0% increase or decrease in each applicable
interest rate would increase or decrease $30,000 to our interest expense for the year ended December 31, 2024. We have not used any derivative
financial instruments to manage our interest risk exposure.

Inflation Risk

In recent years, inflation
has not had a material impact on our results of operations.

<div align='center'>83

APTORUM’S OPERATING AND FINANCIAL REVIEW AND PROSPECTS</div>

The following discussion of
Company’s financial condition and results of operations is based upon and should be read in conjunction with our consolidated financial
statements and their related notes included herein.

This prospectus includes consolidated
financial statements for the years ended December 31, 2024, 2023, and 2022. However, as permitted