Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 405

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1B
Chunk 405
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 of the numerator and denominator of the basic
earnings per share computation to diluted earnings per share.

In
the accompanying consolidated financial statements, basic loss per common share is computed by dividing net loss attributable to common
stockholders by the weighted average number of shares of common stock outstanding during the year. Certain warrants issued and outstanding
include terms and conditions resulting in the treatment as participating securities. Such warrants do not include an obligation for the
warrant holders to fund the losses of the Company. Therefore, these warrants are excluded from the calculation of earnings per common
share in periods of net loss.

Diluted
earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of shares of
common stock outstanding and potentially dilutive shares of common stock during the period to reflect the potential dilution that could
occur from common shares issuable through convertible securities, contingent share arrangements, stock options and warrants unless the
result would be antidilutive.

The
dilutive effect of restricted stock units and other stock-based payment awards subject to vesting and common stock warrants is calculated
using the “treasury stock method,” which assumes that the “proceeds” from the exercise of these instruments are
used to purchase common shares at the average market price for the period. The dilutive effect of convertible securities is calculated
using the “if-converted method.” Under the if-converted method, securities are assumed to be converted at the beginning of
the period, and the resulting shares of common stock are included in the denominator of the diluted calculation for the entire period
being presented.

    F-14

Given
the nominal exercise price of the Company’s issuance of Pre-Funded Warrants (as defined in Note 6), such Pre-Funded Warrants are
included in in the calculation of basic and diluted net loss per share as the exercise price per warrant is deemed nonsubstantive when
compared to the fair value of the underlying common shares. The 1,826,000 unexercised pre-funded warrants as of December 31, 2024 were
included in the Company’s calculation of basic and diluted loss per share.

For
the years ended December 31, 2024 and 2023, the following common stock equivalents were excluded from the computation of diluted net
loss per share as the result of the computation was anti-dilutive.

 Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

    December