Company: SHPH
Filing Date: 2025-02-27
Form Type: 424B3
Source: 0001493152-25-008476
Chunk: 84

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-27
Form: 424B3
Chunk 84
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 highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.

Fair Value of Financial Instruments

We evaluate our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, such as the Acceleration Option in the Alto Convertible Note (as defined in Note 5). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities are evaluated at the end of each reporting period.

For our derivative financial instruments classified as a liability, the Company uses a Monte Carlo valuation model to value the derivative instruments at inception and on subsequent valuation dates. The model requires the use of simulations that are weighted basedthe volatility of a set of guideline companiesand significant unobservable inputs including probabilities assigned. Each simulation is based on the range of inputs in a scenario with the mean of the output on each simulation calculated as an average. The Monte Carlo simulation uses an implied VWAP for valuation. The implied VWAP was backsolved by setting the summation of the parts (e.g., derivatives and debt without derivatives) equal to the cash proceeds and is updated each period.

The use of Monte Carlo valuation models require key inputs, some of which are based on estimates and judgements by management. Any change to these key inputs could produce significantly higher or lower fair value measurements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company,” this item is not required.

| 65 |

Item 8. Financial Statements and Supplementary Data

<div align='center'>Index to Financial Statements</div>

| Report of Independent Registered Public Accounting Firm – Forvis Mazars, LLP (PCAOB ID 686)               
 Consolidated Balance Sheets as of December 31, 2024 and 2023                                              
 Consolidated Statements of Operations for the years ended December 31, 2024 and 2023                      |     | Page 
 F-1  
 F-2  
 F-3  |
|:----------------------------------------------------------------------------------------------------------|:----|:-----|
| Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2024 and 2023 |     | F-4  |
| Consolidated Statements of Cash Flows for the years ended December 31, 2024