Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 31

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 31
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 our common stock. If any of the following risks related to our business actually
occurs, our business, financial condition, operating results, and prospects would be adversely affected. The market price of our common
stock could decline due to any of these risks and uncertainties related to our business, or related to an investment in our common stock,
and you may lose part or all of your investment.

Risks
Related to Our Business, Financial Condition and Capital Requirements

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; our ability to continue as a going concern is dependent upon our ability
to successfully conduct clinical trials, bring a drug candidate to commercialization, generate revenues, and to raise additional equity
or debt financing to fund our operations.

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 had a net loss of
approximately $9.1 million and no revenues for the year ended December 31, 2024, with working capital of approximately $0.7 million as
of December 31, 2024. These conditions, and the Company’s ability to comply with such conditions, raise substantial doubt about
the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements
are issued.

In
September 2022, the Company completed its initial public offering of common stock, generating net proceeds of approximately $10.0 million.
Additionally, in January 2023, the Company entered into a securities purchase agreement with an institutional investor through which
the Company sold a convertible note with a principal value of $4.3 million, along with a four-year warrant to purchase 127,260 shares
of common stock, exercisable at $18.80 per share, providing the Company with approximately $3.6 million in net proceeds. As a consequence
of the October 2024 Equity Financing (as defined below), the exercise price of the warrant was adjusted to $0.48 per share.

In
October 2024, the Company completed an equity raise that provided $4.0 million in cash, net of placement agent fees of $0.5 million, for the issuance of 2.9 million
shares/pre-funded warrants, and by 2.9