Company: SHPH
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009325
Chunk: 9

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 9
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 in operating activities of $1.2 million was primarily due to our net loss of $1.7 million, increased by a gain on change in
derivative liabilities of $0.2 million, offset by amortization of debt discount of $0.4 million, loss on settlement of convertible debt
of less than $0.1 million, accrued interest settled with common stock of less than $0.1 million, stock-based compensation of $0.1 million and increased by
a net change in working capital of $0.1 million.

Cash Flows from Investing Activities

For the three months ended March 31, 2025, the Company
did not have investing activities. For the three months ended March 31, 2024, cash flows used in investing activities was primarily attributable
to investing in trading marketable securities for $19 thousand and receiving $120 thousand in proceeds from disposition of marketable
securities.

Cash Flows from Financing Activities

For the three months ended March 31, 2025, cash flows
from financing activities was primarily comprised of net proceeds of $5.4 million, from the sale of common stock and pre-funded warrants,
net of placement agent costs of $0.3 million, partially offset by $0.2 million payment of other issuance costs for issuance of common
stock and equity-classified warrants, $0.1 million of payment for finance cost, and $0.1 million of repayment of note payable-related
party used to finance the Company’s ongoing operations. For the three months ended March 31, 2024, the Company paid $40,000 related
to financing activities.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

28

Critical Accounting Policies and Significant Judgments and Estimates

This discussion and analysis of our financial condition
and results of operations is based on our unaudited condensed consolidated financial statements, which have been prepared in accordance
with generally accepted accounting principles in the United States (“GAAP”). The preparation of these unaudited condensed
consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, as