Company: SHPH
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009325
Chunk: 17

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 3
Chunk 17
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As a “smaller reporting company,” we are
not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures
(as defined in Securities Exchange Act of 1934, as amended, or the Exchange Act Rule 15d-15(e)) are designed with the objective of ensuring
that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized,
and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed
with the objective of ensuring that such information is accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of March 31, 2025, our
management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Such
evaluation was carried out under the supervision of our Chief Executive Officer with the participation of our President and Chief Operating
Officer, and our Chief Financial Officer, and our third-party financial service provider. Based on this evaluation, management concluded
that our disclosure controls and procedures were, and continue to be, ineffective as of March 31, 2025. Based on the foregoing, our management
concluded that our internal controls over the following financial reporting areas to be material weaknesses:

    ●
    Our written policies and procedures over accounting transaction processing and period end financial close and reporting are limited, which has resulted in ineffective oversight in the establishment of proper monitoring controls over accounting and financial reporting; in addition, we lacked sufficient review and segregation of duties for certain financial transactions, manual journal entries, and critical financial spreadsheets, such that a proper review had not been performed by someone other than preparer, and that process documentation is lacking for review and monitoring controls over accounting and financial reporting. These were contributing factors which led to untimely filings for certain periods in fiscal year 2024.

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    ●
    We lack a formal process to identify and ensure the proper classification of operating expenses as Research and Development.

    ●
    We identified findings related to overall information technology general controls (“ITGCs”) including issues with super-user access and segregation of duties for systems supporting the Company’s internal control processes and controls.

Management’s Remediation
Measures

While the Company has improved
its organizational capabilities, the Company’s remediation efforts will continue to take