Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 1267

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 1267
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)% 
     —%
  
    Other 
     —% 
     (1.9)%
  
    Change in valuation allowance 
     (18.3)% 
     (23.2)%
  
    Shortfall of stock compensation expense 
     (0.6)% 
     (0.6)%
  
    Other adjustments 
     —% 
     (0.4)%
  
    Total income tax expense 
     —% 
     —%

As
of December 31, 2024 and 2023, the Company had approximately $10.9
million and $6.4
million of net operating losses (“NOL”) carried forward to offset federal and state taxable income, if any, in the
future, respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some
portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income during the periods in which those temporary differences become deductible. Management considers
the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this
assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset
relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be
realized.

NOLs
created prior to 2018 could be carried back two years and carried forward 20 years. As amended by the Tax Cuts and Jobs Act of 2017 (TCJA),
NOLs created after 2017 can no longer be carried back and are instead carried forward indefinitely. The Company has $139,813 and $238,380
of federal NOL carryforwards from 2016 and 2017, respectively, which begin to expire in 2036. The Company has an additional $10.6 million
and $10.9 million of federal and state NOLs created after 2017, respectively, which can be carried forward indefinitely. The NOLs can
be used to offset future income limited to the lesser of the NOL or 80% of the year’s taxable income.

As
of December 31, 2024, the Company has $200,715 of federal Research and Development (R&D) tax credits. These can be carried forward
20 years to