Company: SHPH
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001493152-25-002253
Chunk: 215

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-15
Form: S-1
Chunk 215
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 per annum due June 21, 2022. In July of 2022, the loan was extended to June 30, 2023.

The Company accounted for these loan extensions during
the year ended December 31, 2022, as a troubled debt restructuring as the Company was experiencing financial difficulties and the extensions
represented a concession by the lenders. As the future undiscounted cash flows of these related party notes exceeded their carrying value,
no gain or loss was recognized upon the extensions.

As of June 30, 2023 principal payments of $ 685,473and interest of $ 104,968were paid. As of December 31, 2023, there were nooutstanding principal or interest balances for these related party notes.

On August 1, 2022, in conjunction with a private placement of notes and
warrants (as detailed in Note 6 below), in exchange for a $50,000 payment upon subscription, the Company issued a convertible note to
the spouse of an officer of the Company in the amount of $50,000(principal) with an interest rate of 6% per annum, and warrants to purchase
2,500 shares of common stock. The loan was fully repaid, including $822 of accrued interest, in September of 2022.

Note 6 - Notes Payable

Convertible Notes and Notes Payable

Alto Opportunity Master Fund, SPC

On January 11, 2023, the Company entered into a securities purchase agreement (the “SPA”) with Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B, a Cayman entity (the “Investor”), pursuant to which the Company sold to the Investor a $ 4,300,000convertible note (the “Alto Convertible Note”) and warrant (the “Alto Warrant”) to purchase 127,260shares of common stock, exercisable at $ 18.80per share, in exchange for gross proceeds of $ 3,935,000(the “Investment Amount”) (See Note 7). The Company determined that the Alto Warrant contains a net cash settlement feature at inception and categorized the Alto Warrant as a liability in the accompanying consolidated financial statements. The Alto Convertible Note matures on March 11, 2025, but may be extended at the option of the noteholder. The Alto Convertible Note amortizes on a monthly basis and the Company can make such monthly amortization payments in cash or,