Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 847

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 4
Chunk 847
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 of the assistance being given, b) the accounting policies being used to account for the transaction and c) other
provisions of relevance, where required. Depending on the type of grant or contract, the Company understands there is more than one acceptable
alternative for the accounting treatment – a reduction of costs, a deferred credit to be amortized, revenue or other income. The
Company has concluded that reimbursements received for R&D expenses incurred are more akin to a reduction of costs and applies reimbursements
against incurred research costs. For the years ended December 31, 2024 and 2023, the Company recorded $3.6 million and $3.5 million,
respectively, in research and development.

    F-13

Income
Taxes

The
Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset
and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences,
and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, the Company does not foresee generating taxable income in the near future and utilizing its deferred tax asset,
therefore, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets
and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Under
ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented.

Segment
Information 

Operating
segments are defined as components of an enterprise about which separate and discrete information is available for evaluation by the
chief operating decision-maker (“CODM”) in deciding how to allocate resources and assess performance. The
Company’s CODM and the Company’s chief executive officer evaluates the Company’s operations and manages its business
as a single operating segment. All of the Company’s long-lived assets are