Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 1155

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7A
Chunk 1155
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 information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.
The guidance is effective for the Company’s fiscal years beginning after December 15, 2024, with early adoption permitted. The
Company does not expect the adoption of this standard to have any material impact on its financial statements.

On
November 4, 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses (“DISE”),” which
requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions
an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified
categories in disclosures within the notes to the financial statements. ASU 2024-03 is effective for all public business entities for
fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption
is permitted. The Company is currently evaluating the potential impact that this standard may have on its consolidated financial statements
and related disclosures.

There
have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during
the year ended December 31, 2024 that are of significance or potential significance to the Company.

    F-15

Note
3 - Leases

Operating
lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments as of
the lease commencement date. Operating lease expense is recognized on a straight-line basis over the lease term.

The
Company currently has a lease agreement which allows for the use of a laboratory facility, entered into on February 16, 2023, with base
rent of $7,206 per month for a period of 64 months, which increases at the rate of 3% per year, that commenced June 1, 2023. The lease
included a six-month 50% rent abatement upon commencement. Additional common area maintenance (“CAM”) fees are charged monthly
and revised annually. The estimated monthly CAM fees are $3,300 per month for the first year of the lease, which are being expensed as
incurred. An irrevocable letter of credit (“LOC”) for the security deposit of $43,234 and base rent of $3,891, including
50% abatement, and $3,315 of