Company: SHPH
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001493152-25-002253
Chunk: 222

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-15
Form: S-1
Chunk 222
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2022 Convertible Notes would impact their fair value. The fair value at issuance of the warrants was estimated as $ 92,336using a Black-Scholes model, with inputs that included an estimated fair value of the Company’s common stock of $ 32.00, an exercise price of $ 16.00per share (based on the estimated conversion terms), a five year term, 86.1%volatility and a risk free rate of 1.81%to 1.96%.

During the year ended December 31, 2022, the 2022 Convertible Notes were automatically converted into the securities issued by the Company to the investors in the initial public offering, at a discounted price of $ 32.00per unit. Consistent with the investors in the initial public offering, the 2022 Convertible Note holders received 18,438shares of common stock and warrants to purchase 18,438shares of common stock with an exercise price of $ 0.08per share. The warrants issued to the 2022 Convertible Note holders were immediately exercised. Pursuant to the automatic exercise of the share-settled redemption feature, the Company accounted for the conversion as an extinguishment of debt. The Company recognized the issuance of the shares of common stock and warrants at their estimated fair value, and recorded a loss on extinguishment of $ 310,621based on the difference between the estimated fair value ($ 1,198,438) and the net carrying amount of the 2022 Convertible Notes (including the carrying value of the bifurcated derivative liabilities, which were adjusted to then fair value upon settlement). The accrued cash interest was waived upon conversion and was included as a component of the loss on extinguishment.

August 2022 Notes

On August 1, 2022, the Company issued promissory note units, consisting of an aggregate $ 50,000in 10% promissory notes with a maturity date of July 31, 2023 (the “August 2022 Promissory Notes”) and warrants to purchase 2,500shares of common stock exercisable at a price of the lesser of $ 20.00per share or 50% of the per share price paid in the Company’s initial public offering. In addition, the Company issued convertible note units, consisting of an aggregate of $ 75,000in 6% convertible notes with a maturity date of December 31, 2024 (the “August