Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 69

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 69
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 September 10, 2024, the Company received a letter from Nasdaq, notifying the Company that it is no longer in compliance
with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1)
requires listed companies to maintain stockholders’ equity of at least $2.5 million. In the Company’s Quarterly Report on Form
10-Q for the period ended June 30, 2024, the Company reported stockholders’ equity of $801,434, which is below the minimum stockholders’
equity required for continued listing pursuant to Nasdaq Listing Rule 5550(b)(1). In addition, presently, the Company does not meet the
alternatives of market value of listed securities or net income from continuing operations.

Nasdaq’s
notice has no immediate effect on the listing of the Company’s securities on the Nasdaq Capital Market. Nasdaq provided the
Company with 45 calendar days, or until October 25, 2024, to submit a plan to regain compliance with the minimum stockholders’
equity standard.

On
October 15, 2024, the Company submitted a plan to Nasdaq to regain compliance, which was accepted by Nasdaq. As a result, the Company
now has until March 10, 2025 to complete a follow on equity raise to bring the Company’s stockholders’ equity above the minimum
requirement of $2.5 million. While the Company is presently seeking additional funding, and intends to pursue a follow-on offering in
the coming weeks, there is no guarantee that the Company will be able to complete such equity raise or otherwise be able to regain compliance
within the requisite time period. If the Company does not regain compliance, Nasdaq will provide notice to the Company that the Company’s
securities will become subject to delisting. In that event, the Company will have an opportunity to appeal Nasdaq’s decision to
a hearings panel.

42

While
our Company’s management is working to improve our internal controls and procedures, at present management has determined that
our internal controls were deemed to be inadequate, which could cause our financial reporting to be unreliable and lead to misinformation
being disseminated to the public.

Our
management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined in Rule 13a-15(f)
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), internal control