Company: SHPH
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001493152-25-002253
Chunk: 200

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-15
Form: S-1
Chunk 200
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 option, warrant and per share amounts
(except our authorized outstanding) have been retroactively restated in these financial statements and related disclosures. The
effect of the Reverse Stock Split has been included in Note 2 in the “As Reported” and in Note 11 in the “As
Reported” amounts for additional paid in capital.

Note 2 – Restatement of Previously Issued Financial Statements

As previously disclosed in the Company’s
Quarterly Report on Form 10-Q for the period ended March 31, 2024, filed with the Securities and Exchange Commission
(“SEC”) on May 13, 2024, following the entry of a cease-and-desist order by the SEC against our former auditor, B.F.
Borgers CPA PC (“BF Borgers”), we commenced the re-audit (the “Re-audit”) of our consolidated financial
statements for the year ended December 31, 2022, which had been audited by BF Borgers. Since that time and as a result of the
Re-audit, and as initially disclosed on Form 8-K dated July 10, 2024, the Company and the Audit Committee have concluded and
informed our current auditor, Forvis Mazars, LLP, that our audited consolidated financial statements for the year ended December 31,
2022 (the “2022 Financial Statements”), our audited consolidated financial statements for the year ended December 31,
2023 (the “2023 Financial Statements”), and the quarterly periods included in the Company’s Annual Report
for the year ended December 31, 2023, and the quarterly report for the period ended March 31, 2024 require restatement and are not reliable.

The accounting errors impacting our 2022 Financial
Statements include:

Stock Compensation

Series A Convertible Preferred Stock

| ● | Utilization of incorrect inputs to the fair value estimates for the warrant obligation related to                                 
 the Series A Convertible Preferred Stock; incorrectly recording the reclassification of the warrant obligation upon issuance as a 
 gain and not as a reclassification to stockholders’ equity;                                                                       |
| ● | Recording of accrued dividends on the Series A Convertible Preferred Stock as a liability prior to                                
 the dividends being declared;                                                                                                     |
| ● | Failure to recognize the accounting impact for the amendment to the terms of the Series A                                         
 Convertible Preferred Stock in April 2022, which the Company subsequently concluded should have been recognized as an             
 extinguishment;