Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 374

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1B
Chunk 374
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(2,552,074) 
     39%

Research
and Development. Total research and development (“R&D”) expense was $3.6 million for the year ended December 31,
2024, as compared to $3.5 million for the year ended December 31, 2023. The increase in total R&D expense of $0.1 million, or 3%,
is primarily related to the Company having completed production of the drug product and the start of work related to the initiation of
trials including contract research organization (“CRO”) expenses, clinical trial sites, other regulatory activities.

R&D
compensation related expenses were $1.3 million in the year ended December 31, 2024 as compared to $1.5 million in the year ended December
31, 2023. For the year ended December 31, 2024, R&D compensation related expenses was 35% as a percent of total R&D expense,
representing a decrease from the 43% of total R&D incurred in the year ended December 31, 2023. Subcontractor expense made up 60%
of total R&D expenses in the year ended December 31, 2024 and 52% of total R&D expenses during the year ended December 31, 2023.

General
and Administrative Expenses. General and Administrative expenses in the year ended December 31, 2024 increased by $0.3 million, or
33%, from $1.0 million in the year ended December 31, 2023 to $1.4 million in the year ended December 31, 2024. The increase in general
and administrative expenses was primarily due to costs associated with advertising of $0.1 million and marketing of $0.1 for investor
relations and other administrative costs.

Legal
and Professional Expenses. During the year ended December 31, 2024, legal and professional
expenses increased by $1.4 million or 102%. The increase in legal and professional fees was primarily due to increases in our accounting
expenses related to our public filing requirements, legal and professional fees related to our restatement of certain prior periods and
contracts.

59

Other
Income (expense). During the year ended December 31, 2024, other expense increased by $0.7 million or 107%. The increase was primarily
driven by a $1.7 million change in fair value of derivative liabilities and a $0.