Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 1032

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 6
Chunk 1032
---
 in general
and administrative expenses was primarily due to costs associated with advertising of $0.1 million and marketing of $0.1 for investor
relations and other administrative costs.

Legal
and Professional Expenses. During the year ended December 31, 2024, legal and professional
expenses increased by $1.4 million or 102%. The increase in legal and professional fees was primarily due to increases in our accounting
expenses related to our public filing requirements, legal and professional fees related to our restatement of certain prior periods and
contracts.

59

Other
Income (expense). During the year ended December 31, 2024, other expense increased by $0.7 million or 107%. The increase was primarily
driven by a $1.7 million change in fair value of derivative liabilities and a $0.4 million loss on settlement of convertible debt related
to the settlement of the Alto Convertible Note. These increases were partially offset by a decrease in interest expense of $1.3 million
which was also due to the settlement of the Alto Convertible Note during the period ended September 30, 2024.

Liquidity
and Capital Resources

Our
consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction
of liabilities and commitments in the normal course of business. We have incurred losses since inception and had a net loss of $9.1 million
and no revenues during the year ended December 31, 2024 and working capital of approximately $0.7 million as of December 31, 2024. We
do not expect to generate positive cash flows from operating activities in the near future.

In
October 2024, we completed an equity raise that provided $3.7 million net cash, after deducting placement agent fees of $0.5 million
and issuance costs of $0.3 million, for the issuance of 395,574 shares of common stock and 2,555,246 pre-funded warrants, accompanied by an
aggregate of 2,950,820 warrants with an exercise price of $1.40 per share. Also in October 2024, we completed an offering of senior
secured convertible bridge notes, receiving $0.7 million in cash, after deducting issuance costs. The notes have a term of one-year
and were accompanied by 329,461 warrants with a weighted-average exercise price of $1.42 per share. Refer to the “Recent