Company: SHPH
Filing Date: 2025-02-27
Form Type: 424B3
Source: 0001493152-25-008478
Chunk: 123

Company: Shuttle Pharmaceuticals Holdings, Inc.
Filing Date: 2025-02-27
Form: 424B3
Chunk 123
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2024 and 2023.

| F-27 |

The Tax Cuts and Jobs Act of 2017 (“TCJA”) amended IRC Section 174 to require capitalization of all research and development (“R&D”) costs incurred in tax years beginning after December 31, 2021. These costs are required to be amortized over five years if the R&D activities are performed in the U.S., or over 15 years if the activities were performed outside the U.S. For tax reporting purposes, the Company capitalized $3,543,023 and $3,517,485 of R&D expenses incurred as of December 31, 2024 and 2023, respectively.

The reconciliation of income tax benefit at the U.S. statutory rate of 21% to the Company’s tax expense is as follows:

Schedule of Reconciliation of Income Tax Benefit

|                                               |     | 2024         
 December 31, 
 2024         |            |   |     | 2023 
 2023 |            |   |
|:----------------------------------------------|:----|:-------------|-----------:|:--|:----|:-----|-----------:|:--|
| Federal tax benefit at statutory rate         |     | $            | (1,920,407 | ) |     | $    | (1,384,472 | ) |
| State income taxes, net of federal tax effect |     |              |   (627,917 | ) |     |      |   (452,682 | ) |
| Rate change                                   |     |              |         (1 | ) |     |      |     (5,710 | ) |
| R & D tax credits                             |     |              |          — |   |     |      |   (240,000 | ) |
| Return to provision adjustments               |     |              |    445,499 |   |     |      |    286,015 |   |
| Permanent differences                         |     |              |            |   |     |      |            |   |
| Derivative debt discount amortization         |     |              |          — |   |     |      |    562,568 |   |
| Change in fair value of warrant liability     |     |              |   (189,030 | ) |     |      |   (617,655 | ) |
| Loss on convertible note conversion           |     |              |    232,266 |   |     |      |