Company: SHPH
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001493152-25-003508
Chunk: 216

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 216
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 non-recurring basis. The Company used the Black Scholes valuation model using a term of five years, volatility of 110%, a risk-free rate of 3.53% for a value of $ 99,543.

The Company allocated the finance costs related to the Boustead placement agent fee of $ 345,000, based on the relative fair market values of the Convertible Note and warrants issued. The allocation of the financing costs applied $ 232,027to the debt component as a debt discount that is being amortized to interest expense over the term of the Convertible Note, $ 104,245to the warrant derivative liability component, expensed as a finance fee, and $ 8,727to the equity warrant as a reduction in additional paid in capital.

The Company allocated to the debt component of the note an original discount of $ 300,000, legal fees of $ 65,000, $ 215,000for additional interest fees on day one added to note principal, $ 1,442,000for the accelerated conversion feature, and $ 1,288,543for the fair value of warrants, resulting in an additional $ 3,310,543debt discount that is being amortized to interest expense over the term of the Alto Convertible Note.

During the year ended December 31, 2023, the Company recorded interest expense of $ 2,484,193, which included amortization of debt discount as interest expense of $ 2,123,049. During the year ended December 31, 2023, the Company settled $ 1,925,700of principal and settled $ 294,927of accrued interest, which settlements were made in the form of 297,625shares of common stock during the year ended December 31, 2023.

As of December 31, 2023, the outstanding principal for the convertible note was $ 2,254,856and the debt discount remaining was $ 1,523,768, with a net convertible note carrying value of $ 731,088, which represents the current and non-current portions of the convertible note as of December 31, 2023.

| F-36 |

Subsequent to December 31, 2023, the Company and the Investor agreed to certain changes in terms of the Alto Convertible Note as well as the waiver of certain covenant violations. See Subsequent Events for further details.

Paycheck Protection Program Term Notes

On March 9,