Company: SHPH
Filing Date: 2025-02-13
Form Type: S-1
Source: 0001493152-25-006202
Chunk: 17

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-13
Form: S-1
Chunk 17
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 Stock Split.

Going Concern Uncertainty

Our consolidated financial
statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and
commitments in the normal course of business. The Company has incurred losses since inception and has a net loss of approximately $7.5
million and no revenues for the nine months ended September 30, 2024 and has a working capital deficit of approximately $1.3 million
as of September 30, 2024.

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The Company does not
expect to generate positive cash flows from operating activities in the near future. In September 2024, the Company’s CEO provided
$250 thousand to the Company in exchange for a promissory note repayable in equal monthly installments of principal and interest over
a term of one year. In October 2024, the Company completed an offering of senior secured convertible bridge notes, receiving $790 thousand
in cash. The notes have a term of one-year and were accompanied by 329,461 warrants with a weighted-average exercise price of $1.42.
Also in October 2024, the Company completed an equity raise that provided $3.9 million net cash for the issuance of 2.9 million shares
/ pre-funded warrants, and by 2.9 million warrants with an exercise price of $1.40. However, the Company’s existing cash resources
and the cash received from the equity offering and senior convertible note are not expected to provide sufficient funds to carry out
the Company’s operations and clinical trials through the next twelve months.

The Company’s
capital raises have to date supported operations, the manufacture of drug product and FDA approval of the IND for the Phase II clinical
trial of Ropidoxuridine and radiation therapy in glioblastoma and other radiation sensitizer discovery and therapy. The FDA recommended
and the Company agreed to an expansion of the Phase II clinical trial, necessitating additional capital to complete the trial as well
as fund ongoing operations. Additionally, the Phase II clinical trial of Ropidoxuridine has evolved with finalized agreements with all
six of the planned site enrollment locations to administer the Phase II clinical trial of Ropidoxuridine and the enrollment of the first
ten patients.

The ability of the Company to continue as a going
concern is dependent upon its ability to continue to successfully raise additional equity or debt financing to allow it to fund
ongoing operations, conduct clinical trials and bring a