Company: SHPH
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001493152-25-003508
Chunk: 234

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 234
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4 | )% |
| Change in valuation allowance                       |     |              | (23.2 | )% |     |              |  (7.6 | )% |
| Shortfall of stock compensation expense             |     |              |  (0.6 | )% |     |              |     — | %  |
| Other adjustments                                   |     |              |  (0.4 | )% |     |              |     — | %  |
| Total income tax expense                            |     |              |     — | %  |     |              |     — | %  |

As of December 31, 2023, the Company had approximately $ 6.4million and $ 5.9million of net operating losses (“NOL”) carried forward to offset federal and state taxable income, if any, in the future. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized.

NOLs created prior to
2018 could be carried back two years and carried forward 20
years. As amended by the Tax Cuts and Jobs Act of 2017 (TCJA), NOLs created after 2017 can no longer be carried back and are instead
carried forward indefinitely. The Company has $139,813
and $238,380
of federal NOL carryforwards from 2016 and 2017, respectively, which begin to expire in 2036. The Company has an additional $6.0
million and $5.9
million of federal and state NOLs created after 2017, respectively, which can be carried forward indefinitely. The NOLs can be used
to offset future income limited to the lesser of the NOL or 80%
of the year’s taxable income.

As of December 31, 2023, the Company has $360,715
of federal Research and Development (R&D) tax credits. These can