Company: SHPH
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001493152-25-002253
Chunk: 227

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-15
Form: S-1
Chunk 227
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 classification in stockholders’ equity. The Company reclassified the then fair value of these warrants, totaling $ 756,723, to additional paid in capital in stockholders’ equity.

The warrant liability related to the Series A Preferred Stock was $ 0as of December 31, 2022. For the period ended December 31, 2022 (prior to reclassification), the change in fair value of warrant obligation liability was a loss of $ 421,768.

| F-39 |

Warrants Issued to Boustead as Placement Agent or Underwriter

For services provided in relation to the 2022 Convertible
Notes and August 2022 Notes offerings, Boustead received warrants to purchase 10% of the shares of common stock issuable upon conversion
of the 2022 Convertible Notes, at the conversion price of the notes. Upon conversion, the warrant became exercisable for a total of 2,582
shares of common stock at an exercise price of $16.00 per share. These warrants were accounted for under ASC 718 and classified as liabilities
due to the fact that the conversion of the 2022 Convertible Notes would impact their fair value. These warrants were exercised on a cashless
basis in September 2022. The Company reclassified the then fair value of the warrants of $64,140 at the initial public offering to equity, with the estimated
fair value based on a Black-Scholes model, with inputs that included an estimated fair value of the Company’s common stock of $32.50,
an exercise price of $16.00 per share, a remaining term of 4.5 years, 82.5% volatility and a risk free rate of 3.43%.

Boustead acted as placement agent for the August 2022
Notes and received warrants to purchase 625 shares of common stock at an exercise price of $20.00 per share. These warrants were classified
in equity and exercised on a cashless basis in September 2022.

Boustead additionally received a warrant to purchase
21,453 shares of common stock at an exercise price of $97.52 per share upon the closing of the IPO. These warrants were classified in
equity and exercised on a cashless basis in September 2022. Upon the closing of the overallotment option to the IPO, Boustead received
an additional warrant to purchase 3,218 shares of common stock at an exercise price of $97.52