Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 247

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 247
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 30, 2023 and September 30, 2023, specific to Additional
Paid In Capital and Accumulated Deficit. Additionally, the restatement constituted an event of default under the terms of one of the
Company’s financing arrangements that was subsequently waived but required additional cash collateral from the Company.

In
addition, in connection with the restatement of the previously issued financial statements for the fiscal year ended December 31, 2023
and December 31, 2022, and fiscal quarter ended March 31, 2024 (the “Affected Periods”), management identified certain material
weaknesses in our internal control over financial reporting. Although we are taking remediation measures, including having 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 trials,
we can give no assurance that the measures we have taken, are taking and plan to take in the future will remediate the material weaknesses
identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure
to implement and maintain adequate internal control over financial reporting. In addition, even if we are successful in strengthening
our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify irregularities or
errors or to facilitate the fair presentation of our consolidated financial statements.

49

As
a result of the restatement and associated non-reliance on the previously issued financial statements for the Affected Periods and the
identified material weakness, we have become subject to a number of additional costs and risks, including unanticipated costs for accounting
and legal fees in connection with or related to the restatement and the ongoing process of remediating the material weaknesses. We could
also be subject to regulatory, stockholder or other actions in connection with the restatement and/or the material weaknesses, which
would, regardless of the outcome, consume management’s time and attention and may result in additional legal, accounting and other
costs. If such proceedings arise and we do not prevail in such proceedings, we could be required to pay damages or settlement costs.
In addition, the restatement and related matters could impair our reputation or could cause our stockholders or other counterparties
to lose confidence in us. Any of these occurrences could adversely affect our business, financial condition, liquidity and results of