Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 650

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 2
Chunk 650
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0% 
     21.0%
  
    State income tax benefit, net of federal tax effect 
     6.9% 
     6.9%
  
    Change in tax rate 
     —% 
     0.1%
  
    R&D tax credits 
     —% 
     3.6%
  
    Return to provision adjustments 
     (4.9)% 
     (4.3)%
  
    Permanent differences 

    Derivative Debt Discount Amortization 
     —% 
     (8.6)%
  
    Change in FMV of Warrant Liability 
     2.1% 
     9.4%
  
    Loss on convertible note conversion 
     (2.5)% 
     (2.0)%
  
    Disqualified Debt Interest Expense 
     (3.7)% 
     —%
  
    Other 
     —% 
     (1.9)%
  
    Change in valuation allowance 
     (18.3)% 
     (23.2)%
  
    Shortfall of stock compensation expense 
     (0.6)% 
     (0.6)%
  
    Other adjustments 
     —% 
     (0.4)%
  
    Total income tax expense 
     —% 
     —%

As
of December 31, 2024 and 2023, the Company had approximately $10.9
million and $6.4
million of net operating losses (“NOL”) carried forward to offset federal and state taxable income, if any, in the
future, respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some
portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income during the periods in which those temporary differences become deductible. Management considers
the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this
assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset
relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be
realized.

NOLs
created prior to 2018 could be carried back two years and carried forward 20 years. As amended by the