Company: SHPH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001493152-25-008300
Chunk: 654

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 2
Chunk 654
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 Operating Officer,
and our third-party consultants. Based on this evaluation, management
concluded that our disclosure controls and procedures were, and continues to be, ineffective as of December 31, 2024. Based on the foregoing,
our management concluded that our internal controls over the following financial reporting areas to be material weaknesses:

    ●
    Our written accounting policies and documentation of management’s
contemplation of the accounting treatment and implications over significant unusual transactions, including complex accounting associated
with debt and equity transactions, was limited and resulted in ineffective monitoring of financial reporting. These were contributing
factors which lead to untimely filings.

    ●
    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. 

    ●
    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.

    ●
    Our
    accounting policies and review processes regarding certain technical aspects of financial reporting for stock-based compensation
    transactions, particularly relating to grant date fair value and expense attribution, was not performed at a sufficiently precise
    level and resulted in the incorrect recording of related compensation expense and related disclosures.

Other
than as noted below, there has been no change in the Company’s internal control over financial reporting during the fiscal year
ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures
over financial reporting on an ongoing basis and are committed to taking further action and implementing additional improvements as necessary.

68

Management’s
Remediation Measures

While
the Company has improved its organizational capabilities, the Company’s