Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 1067

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 6
Chunk 1067
---
% interest per year. The notes include a 5% original issue discount and the Company
received $570,000 in proceeds. The notes are convertible beginning three months after the date of issuance, and the conversion price
will be the lower of a 15% discount to (i) the 5-day volume-weighted average price (“VWAP”) immediately prior to Closing
or (ii) the price of any offering entered into by the Company during the term of the notes. The Company has the option to prepay the
notes at any time for 107% of total outstanding balance and any outstanding principal will be paid in conversion of shares of common
stock at the end of the term, subject to the Company’s exercise of the optional prepayment right. Any accrued interest will be
repaid quarterly in cash. The Company also issued warrants to the lenders to purchase an aggregate 240,917 shares of common stock, exercisable
at $1.40 per share, with such warrants expiring five years from issuance. In addition, the Company’s Chief Executive Officer, Dr.
Anatoly Dritschilo, invested a total of $237,500 in this financing round, in exchange for a $250,000 convertible note.

    F-17

On
October 21, 2024, the Company issued an additional $231,579 in senior secured convertible notes due in October 2025, with substantially
similar terms as the October 14, 2024, issuance. The notes include a 5% original issue discount and the Company received $220,000 in
proceeds. The Company also issued warrants to the lenders to purchase an aggregate 88,544 shares of common stock, exercisable at $1.49
per share, with such warrants expiring five years from issuance. Upon completing this issuance, the Company closed the senior secured
convertible note offering after receiving a total of $790,000 in proceeds.

After
analyzing the terms of the 2024 Convertible Bridge Notes (“Convertible Bridge Notes”) and its embedded features, the
Company elected to account for the 2024 Convertible Bridge Notes at fair value under the allowable fair value option election. As
such, the Company initially recognized the 2024 Convertible Bridge Notes at their fair value and will subsequently measure the note
at fair value with changes in fair value recorded in current period earnings (or other comprehensive income, if specific to Company
credit risk). The Company initially recorded the