Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 977

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 5
Chunk 977
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esciences Pvt Ltd. TCG GreenChem
was contracted for process research, development and cGMP compliant manufacture of IPdR. The Company paid TCG GreenChem a total of $1,096,370
during the year ended December 31, 2023, completing the contract. No costs were incurred during the year ended December 31, 2024 with
this related party.

Note
12 – Income Taxes

The
Company has no income tax expense or benefit for the years ended December 31, 2024 and 2023, since the Company has a full valuation allowance
for the net operating loss carryforwards in these periods.

The
Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained
upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions
are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. There are
no uncertain tax positions to be reported for the tax years 2024 and 2023.

    F-27

The
Tax Cuts and Jobs Act of 2017 (“TCJA”) amended IRC Section 174 to require capitalization of all research and development
(“R&D”) costs incurred in tax years beginning after December 31, 2021. These costs are required to be amortized over
five years if the R&D activities are performed in the U.S., or over 15 years if the activities were performed outside the U.S. For
tax reporting purposes, the Company capitalized $3,543,023 and $3,517,485 of R&D expenses incurred as of December 31, 2024 and 2023,
respectively.

The
reconciliation of income tax benefit at the U.S. statutory rate of 21% to the Company’s tax expense is as follows:

Schedule
of Reconciliation of Income Tax Benefit

    2024  
    2023 

    December 31, 

    2024  
    2023 
  
    Federal tax benefit at statutory rate 
    $(1,920,407) 
    $(1,384,472)
  
    State income taxes, net of federal tax effect 
     (627,917) 
     (452,682)
  
    Rate change 
     (1) 
     (5,710)
  
    R