Company: SHPH
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001493152-25-002253
Chunk: 218

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-15
Form: S-1
Chunk 218
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 expensed as a finance fee, and $ 8,727to the equity warrant as a reduction in additional paid in capital.

The Company allocated to the debt component of the note an original discount of $ 300,000, legal fees of $ 65,000, $ 215,000for additional interest fees on day one added to note principal, $ 1,442,000for the accelerated conversion feature, and $ 1,288,543for the fair value of warrants, resulting in an additional $ 3,310,543debt discount that is being amortized to interest expense over the term of the Alto Convertible Note.

During the year ended December 31, 2023, the Company recorded interest expense of $ 2,484,193, which included amortization of debt discount as interest expense of $ 2,123,049. During the year ended December 31, 2023, the Company settled $ 1,925,700of principal and settled $ 294,927of accrued interest, which settlements were made in the form of 297,625shares of common stock during the year ended December 31, 2023.

As of December 31, 2023, the outstanding principal for the convertible note was $ 2,254,856and the debt discount remaining was $ 1,523,768, with a net convertible note carrying value of $ 731,088, which represents the current and non-current portions of the convertible note as of December 31, 2023.

| F-36 |

Subsequent to December 31, 2023, the Company and the Investor agreed to certain changes in terms of the Alto Convertible Note as well as the waiver of certain covenant violations. See Subsequent Events for further details.

Paycheck Protection Program Term Notes

On March 9, 2021, the Company obtained a $ 73,007term note issued under the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (the “PPP”). The note bore an interest rate of 1% per annum, had a six-month deferral period with payments due on the seventh month, with all outstanding principal and interest due and payable within two years from the note’s inception date. Under its terms, all or a portion of the note may be forgiven in accordance with PPP requirements, with no more than 25% of the amount forgiven to be attributable to non-payroll costs. As of December 31, 2021,