Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 291

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 291
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 classification,
the warrants are required to be recorded at their initial fair value on the date of issuance, and at each balance sheet date thereafter.
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the consolidated statements of operations.
The Company also evaluates if changes in contractual terms or other considerations would result in the reclassification of outstanding
warrants from liabilities to stockholders’ equity (or vice versa).

    F-12

The
fair value of the warrants is estimated using a Monte Carlo simulation. Warrants that have terms greater than one year are classified
as non-current liabilities in the balance sheet, unless there is an indication that the warrants would be settled within one year.

Impairment
of Long-Lived Assets

The
Company reviews its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying
amount of the asset may not be fully recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset
to the estimated undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated
future cash flows, an impairment charge will be recognized in the amount by which the carrying amount of the asset exceeds the fair value
of the asset. There were no impairments of long-lived assets during the periods presented.

Stock-Based
Compensation

Compensation
cost for stock awards, which include restricted stock units (“RSUs”), is measured at the fair value on the grant date and
recognized as expense, over the related service period. The fair value of stock awards is based on the quoted price of
our common stock on the grant date. Compensation expense related to the RSUs is reduced by the fair value of the units that are forfeited
by employees that leave the Company prior to vesting as they occur. Compensation cost for RSUs is recognized using the straight-line
method over the requisite service period.

Research
and Development Expenses

Research
and development expenses are charged to expense as incurred. Research and development expenses include, but are not limited to, product
development, clinical and regulatory expenses, payroll and other personnel expenses, which include a certain portion of the Company’s
chief executive officer, chief operating officer, vice president regulatory (formerly the chief financial officer) and directors’
compensation. For the year ended December 31, 2024 and 2023, a portion of personnel-related expenses and stock-based compensation expense
for these individuals totaling $0.