Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 637

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 2
Chunk 637
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 years, volatility of 110%, a risk-free rate of 3.53% for a value of $99,543.

The
Company allocated the finance costs related to the Boustead placement agent fee of $345,000, based on the relative fair market values
of the Convertible Note and warrants issued. The allocation of the financing costs applied $232,027 to the debt component as a debt discount
that was being amortized to interest expense over the term of the Convertible Note, $104,245 to the warrant derivative liability component,
expensed as a finance fee, and $8,727 to the equity warrant as a reduction in additional paid in capital.

The
Company allocated to the debt component of the note an original discount of $300,000, legal fees of $65,000, $215,000 for additional
interest fees on day one added to note principal, $1,442,000 for the accelerated conversion feature, and $1,288,543 for the fair value
of warrants, resulting in an additional $3,310,543 debt discount that was being amortized to interest expense over the term of the Alto
Convertible Note.

On
August 6, 2024, the Company entered into an amendment to the SPA with Alto. Under the Amendment Agreement, the Company and Alto agreed
as follows: (i) that the Company would pay $600,000 (the “Cash Collateral”) in cash by wire transfer of immediately available
funds to Alto, which would be held as collateral on the remaining $1.2 million outstanding under the Alto Note; (ii) Alto will defer
the monthly installment payment due on September 3, 2024 under the Alto Note until the Alto Note’s March 11, 2025 maturity date;
and (iii) Alto would grant a waiver of any default Section 4(a)(xvi) of the Note related to the restatement and reaudit of the Company’s
financial statements for the years ended December 31, 2022 and 2023. The amendment was accounted for as a troubled debt restructuring
as the Company determined it was experiencing financial difficulties and was provided a concession through the deferral of one monthly
principal and interest payment. As the future undiscounted cash flows exceeded the carrying value of the Alto Convertible Note, the Company
did not recognize any gain or loss associated with the troubled debt restructuring.

During
the year ended December 31, 2024, the Company recorded