Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 751

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 3
Chunk 751
---
 the same used for the 2024 Convertible Bridge Notes (Note 5 above), except for the risk-free rates (4.15%
- 4.47%), respective exercise prices and expected lives. The net proceeds from the Public Offering were allocated first to
the Common Warrants at fair value, with the residual amount recorded to the Common Stock and Pre-Funded Warrants based on their
relative fair value. The proceeds allocated to the Common Warrants, Common Stock and the Pre-Funded Warrants were $0.2
million, $0.8
million and $3.5
million, respectively. The estimated fair values of the Shares and Pre-Funded Warrants have been recorded in additional paid in
capital, while the fair value of the Common Warrants have been recorded as a derivative liability.

The
Company also incurred $0.8 million in legal and other fees related to the Public Offering. The legal and other fees were allocated to
the Common Stock, Common Warrants, and Pre-Funded Warrants in proportion to the allocation of the proceeds. $0.7 million of legal and
other fees are recorded as costs of the Public Offering and reduced the amount recorded to additional paid in capital, while less than
$0.1 million of legal and other fees are recorded as expense.

Warrants

In
connection with the January 2023 Alto Convertible Note, Boustead was granted warrants to purchase 8,909 shares of common stock, at an
exercise price of $18.80 per share (Note 5). In addition, Alto was granted warrants to purchase 127,260 shares of common stock, at an
exercise price of $0.48 per share, as adjusted (Note 5, 7).

In
connection with the Convertible Bridge Notes issued on October 14, 2024, the lenders were granted warrants to purchase 240,917 shares
of common stock, at an exercise price of $1.40 per share. In addition, in connection with the Convertible Bridge Notes issued on October
21, 2024, the lenders were granted warrants to purchase 88,544 shares of common stock, at an exercise price of $1.49 per share.

In
connection with the October 2024 Equity Financing, the Company issued pre-funded warrants to purchase
up to 2,555,246
shares of common
stock, at an exercise price of $0.001
per share, and warrants
to purchase