Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 623

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 2
Chunk 623
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, the Company used an equity built up, risk adjusted rate, as the implicit interest rate.

Property
and Equipment

Property
and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred;
additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost
and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of
property and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows:

Schedule
of Useful Lives for Property Plant Equipment

    Furniture 
    5 years
  
    Computers and equipment 
    5 years
  
    Research Equipment 
    10 years

Derivative
Financial Instruments

The
Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. The Company evaluates
all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives.
For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair
value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations.

For
its derivative financial instruments, the Company utilizes the most appropriate valuation model (such as Monte Carlo simulations or other
sophisticated models, based on the nature of the terms of the instrument) to value the derivative instruments at inception and on subsequent
valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or
as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the consolidated balance sheet
sheets as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within
twelve (12) months of the balance sheet date.

    F-11

Convertible
Notes

The
Company accounts for its Convertible Bridge Notes (as defined in Note 5) under the fair value option in accordance with ASC 825. The
fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. Additional
term or other notes may be issued in subsequent periods where the Company would be able to make a fair value option election upon issuance
provided eligibility criteria are met. The Company records the portion of the Convertible Bridge Notes that are issued and outstanding
for accounting purposes at