Company: SHPH
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001493152-25-003508
Chunk: 221

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 221
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ory note units, consisting of an aggregate $ 50,000in 10% promissory notes with a maturity date of July 31, 2023 (the “August 2022 Promissory Notes”) and warrants to purchase 2,500shares of common stock exercisable at a price of the lesser of $ 20.00per share or 50% of the per share price paid in the Company’s initial public offering. In addition, the Company issued convertible note units, consisting of an aggregate of $ 75,000in 6% convertible notes with a maturity date of December 31, 2024 (the “August 2022 Convertible Notes”, and collectively, the “August 2022 Notes”) and warrants to purchase 3,750shares of common stock exercisable at a price of the lesser of $ 20.00per share or 50% of the per share price paid in the Company’s initial public offering. The Company received net proceeds of $ 50,000upon the issuance of the August 2022 Promissory Notes, $ 25,000upon the issuance of the August 2022 Convertible Notes (non-related party) and $ 50,000upon the issuance of the August 2022 Convertible Notes issued to a related party (as detailed in Note 5 above).

The Company assessed the embedded features of the August 2022 Promissory Notes and determined that the accelerated repayment upon an initial
public offering represented a derivative feature requiring bifurcation. The Company estimated the fair value of the derivative to be $45,000
at issuance (see Note 8 for fair value considerations). The Company assessed the embedded features of the August 2022 Convertible Notes
and determined that the automatic conversion feature with a 50% discount to per share price paid (a share-settled redemption feature)
and the 10% principal increase feature were not clearly and closely related to the debt host instrument and met the definition of a derivative
and as such, required bifurcation from the August 2022 Convertible Notes. The Company estimated the fair value at issuance of these features
to be $31,000 and recorded as a discount to the August 2022 Convertible Notes (see Note 8 for fair value considerations).

The Company determined that the warrants issued with the August 2022 Notes should be classified as liabilities under ASC 815, as the settlement amount could vary based on the occurrence of the initial public offering. The