Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 152

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 152
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 in ineffective monitoring of financial reporting. These were contributing
factors which lead to untimely filings.

    ●
    Our
    written policies and procedures over accounting transaction processing and period end financial close and reporting are limited,
    which has resulted in ineffective oversight in the establishment of proper monitoring controls over accounting and financial reporting;
    in addition, we lacked sufficient review and segregation of duties for certain financial transactions, manual journal entries, and
    critical financial spreadsheets, such that a proper review had not been performed by someone other than preparer, and that process
    documentation is lacking for review and monitoring controls over accounting and financial reporting. These were contributing factors
    which led to untimely filings for certain periods in fiscal year 2024. 

    ●
    We
    lack a formal process to identify and ensure the proper classification of operating expenses as Research and Development.

    ●
    We
    identified findings related to overall information technology general controls (“ITGCs”) including issues with super-user
    access and segregation of duties for systems supporting the Company’s internal control processes and controls.

    ●
    Our
    accounting policies and review processes regarding certain technical aspects of financial reporting for stock-based compensation
    transactions, particularly relating to grant date fair value and expense attribution, was not performed at a sufficiently precise
    level and resulted in the incorrect recording of related compensation expense and related disclosures.

Other
than as noted below, there has been no change in the Company’s internal control over financial reporting during the fiscal year
ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures
over financial reporting on an ongoing basis and are committed to taking further action and implementing additional improvements as necessary.

68

Management’s
Remediation Measures

While
the Company has improved its organizational capabilities, the Company’s remediation efforts will continue to take place. Management
is committed to maintaining a strong internal control environment. In response to the identified material weaknesses in the overall control
environment, management is currently implementing additional measures which include:

    ●
    Hired
    a new Chief Financial Officer during the second quarter of 2024 to bolster the Company’s internal technical accounting and
    financial reporting experience and provide bandwidth for the prior Chief Financial Officer to focus on the Company’s expanding
    clinical trial.
  
    ●
    Engaged