Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 519

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1C
Chunk 519
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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 CAM cost, was due and paid on execution of the lease agreement. Alexandria Real Estate (ARE-QRS-CORP) is
the beneficiary of the LOC, and the expiry date of the LOC is March 1, 2025.

The
following summarizes the right-of use asset and lease information for the Company’s operating leases:

 Schedule of Right-of Use Asset and Lease Information about Operating Lease

    2024  
    2023 

    Years Ended 

    December 31, 

    2024  
    2023 
  
    Operating lease cost 
     91,787  
     112,022 
  
    Variable lease cost 
     41,257  
     24,222 
  
    Sublease income 
     (6,489) 
     (7,819)
  
    Total lease cost 
     126,555  
     128,425 

    Other information: