Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 1342

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 1342
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 and timing) are not executed and the probability that the securities issuable under the convertible
bridge notes are not timely registered.

The
following table summarizes the changes in the carrying value of the 2024 Convertible Bridge Notes:

Schedule
of Fair Value Measurement using Significant Unobservable Inputs

    Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  
    Balance - December 31, 2023 
    $— 
  
    Issuance of 2024 Convertible Bridge Notes 
     806,758 
  
    Gain on change in fair value 
     (122,553)
  
    Balance - December 31, 2024 
    $684,205 

    F-18

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 $4,300,000 convertible note (the “Alto Convertible Note”) and warrant (the “Alto Warrant”) to purchase 127,260
shares of common stock, exercisable at $18.80 per share, in exchange for gross proceeds of $3,935,000 (the “Investment Amount”)
(See Note 6). As a consequence of the Company issuing the Convertible Bridge Notes, the exercise price of the Alto Warrant was adjusted
to $0.48 per share. 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 was amortized on a monthly basis and the Company could make such monthly amortization payments in cash or, subject
to certain equity conditions, in registered shares of common stock or a combination thereof. Installments could be deferred by the noteholder,
resulting in a variable interest rate. However, the effective interest rate was approximately 214% based on the internal rate of return
calculated on a series of cash flows that occur at regular intervals. For equity repayment, the Alto Convertible Note was convertible
into shares of common stock at a price per share equal to the lower of (i) $18.80 per share, as adjusted, (ii) 90% of the three lowest
daily VWAPs