Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

Quarterly Report UNDER Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024

☐

Transition Report UNDER Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______________ to ______________

Commission file number 001-41488

SHUTTLE PHARMACEUTICALS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		82-5089826
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

401 Professional Drive, Suite 260

Gaithersburg, MD 20879

(Address of principal executive offices) (Zip Code)

(240) 403-4212

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		SHPH		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock on September 3, 2024 was 2,226,951.

Shuttle Pharmaceuticals Holdings, Inc.

TABLE OF CONTENTS

		Page No.

	PART I. Financial Information

Item 1.	Financial Statements	3

	Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3

	Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023	4

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	5

	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

	PART II. Other Information

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	27

	Signatures	28

PART I. Financial Information

Item 1. Unaudited Condensed Consolidated Financial Statements

Shuttle Pharmaceuticals Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30,			December 31,
	2024			2023
Assets
Current assets
Cash and cash equivalents	$	695,594		$	2,576,416
Prepaid expenses		139,518			114,473
Marketable securities		1,642,995			2,887,215
Accrued interest income		7,226			14,901
Total Current Assets		2,485,333			5,593,005

Property and equipment, net		21,953			24,827
Operating lease right-of-use asset		305,712			333,904
Total Assets	$	2,812,998		$	5,951,736

Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued expenses	$	364,891		$	282,860
Accounts payable and accrued expenses related party		-			446
Accounts payable and accrued expenses		-			446
Accrued interest payable		130,898			110,453
Convertible notes payable, net		826,235			595,999
Derivative liability		504			-
Operating lease liability		62,092			52,479
Total Current Liabilities		1,384,620			1,042,237

Convertible notes payable non-current, net		-			135,089
Derivative liability		359,919			414,512
Operating lease liability non-current		267,025			304,127
Total Liabilities		2,011,564			1,895,965

Stockholders’ Equity
Series A Convertible Preferred Stock, $0.00001 par value; $1,000 per share liquidation value; 20,000,000 shares authorized; no shares issued or outstanding		-			-
Common stock, $0.00001 par value; 100,000,000 shares authorized; 2,106,233 and 2,008,689 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		21			20
Additional paid in capital		29,996,963			29,489,055
Accumulated deficit		(29,195,550	)		(25,433,304	)
Total Stockholders’ Equity		801,434			4,055,771
Total Liabilities and Stockholders’ Equity	$	2,812,998		$	5,951,736

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Shuttle Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	2024			2023			2024			2023
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Revenue	$	-		$	-		$	-		$	-

Operating expenses
Research and development		645,719			839,665			1,231,823			1,761,466
General and administrative		310,038			209,279			634,647			464,633
Legal and professional		526,877			416,688			1,001,011			784,312
Total operating expenses		1,482,634			1,465,632			2,867,481			3,010,411

Loss from operations		(1,482,634	)		(1,465,632	)		(2,867,481	)		(3,010,411	)

Other income (expense)
Interest expense - related parties		-			(2,588	)		-			(6,825	)
Interest expense		(430,685	)		(729,351	)		(928,200	)		(1,328,682	)
Interest income		14,158			19,267			35,611			35,955
Finance fee		-			-			-			(104,245	)
Change in fair value of derivative liabilities		(143,773	)		434,275			54,089			1,675,275
Gain on sale of marketable securities		39,683			1,744			43,720			1,744
Change in fair value of marketable securities		(27,964	)		(26,534	)		(28,670	)		11,528
Loss on settlement of convertible debt		-			(415,553	)		(71,315	)		(433,807	)
Total other expense		(548,581	)		(718,740	)		(894,765	)		(149,057	)

Net loss attributable to common stockholders	$	(2,031,215	)	$	(2,184,372	)	$	(3,762,246	)	$	(3,159,468	)

Weighted average common shares outstanding - basic and diluted		2,104,933			1,780,171			2,090,890			1,742,520
Net loss per shares - basic and diluted	$	(0.96	)	$	(1.23	)	$	(1.80	)	$	(1.81	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Shuttle Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

For the Six Months Ended June 30, 2024

	Shares		Amount		Capital		Deficit			Equity
					Additional					Total
	Common Stock				Paid in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity

Balance - December 31, 2023		2,008,689	$	20	$	29,489,055	$	(25,433,304	)	$	4,055,771

Common stock issued for conversion of accrued interest and principal		78,197		1		325,297		-			325,298
Common stock issued for restricted stock units		15,625		-		-		-			-
Stock-based compensation		-		-		111,449		-			111,449
Net loss		-		-		-		(1,731,031	)		(1,731,031	)
Balance - March 31, 2024		2,102,511		21		29,925,801		(27,164,335	)		2,761,487

Common stock issued for restricted stock units		3,722		-		-		-			-
Stock-based compensation		-		-		71,162		-			71,162
Net loss		-		-		-		(2,031,215	)		(2,031,215	)
Balance - June 30, 2024		2,106,233	$	21	$	29,996,963	$	(29,195,550	)	$	801,434

For the Six months ended June 30, 2023

					Additional					Total
	Common Stock				Paid in		Accumulated			Stockholders’
	Shares		Amount		Capital		Deficit			Equity (Deficit)

Balance - December 31, 2022		1,700,414	$	17	$	26,518,433	$	(18,840,581	)	$	7,677,869

Warrants issued for financing costs, net of issuance fees of $8,727		-		-		90,816		-			90,816
Common stock issued for conversion of accrued interest and principal		6,375		-		104,547		-			104,547
Stock-based compensation		-		-		8,333		-			8,333
Net loss		-		-		-		(975,097	)		(975,097	)
Balance - March 31, 2023		1,706,789		17		26,722,129		(19,815,678	)		6,906,468
Balance		1,706,789		17		26,722,129		(19,815,678	)		6,906,468

Common stock issued for conversion of accrued interest and principal		228,489		2		2,163,990		-			2,163,992
Stock-based compensation		-		-		49,522		-			49,522
Net loss		-		-		-		(2,184,372	)		(2,184,372	)
Balance - June 30, 2023		1,935,278	$	19	$	28,935,641	$	(22,000,050	)	$	6,935,610
Balance		1,935,278	$	19	$	28,935,641	$	(22,000,050	)	$	6,935,610

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Shuttle Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	2024			2023
	Six Months Ended
	June 30,
	2024			2023

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,762,246	)	$	(3,159,468	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,874			2,970
Change in fair value of derivative liabilities		(54,089	)		(1,675,275	)
Amortization of debt discount and finance fees		832,014			1,116,422
Gain on sale of marketable securities		(43,720	)		(1,744	)
Change in fair value of marketable securities		28,670			(11,528	)
Accrued interest settled with common stock		18,783			240,831
Loss on settlement of convertible debt		71,315			433,807
Stock-based compensation		182,611			57,855
Changes in operating assets and liabilities:
Accrued interest income		7,675			(6,950	)
Prepaid expenses		(25,045	)		82,199
Accounts payable and accrued expenses		82,031			(28,004	)
Accounts payable and accrued expenses - related parties		(446	)		(12,500	)
Accrued interest payable		20,445			75,511
Accrued interest payable - related parties		-			(98,135	)
Change in operating lease asset and liability		703			(30	)
Net cash used in operating activities		(2,638,425	)		(2,984,039	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities		(35,982	)		(2,970,905	)
Proceeds from disposition of marketable securities		1,295,252			80,000
Net cash provided by (used in) investing activities		1,259,270			(2,890,905	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable-related party		-			(685,473	)
Proceeds from convertible notes payable and warrants		-			3,935,000
Payment for finance costs related to convertible note payable		-			(345,000	)
Payment of convertible note payable		(501,667	)		-
Net cash provided by (used in) financing activities		(501,667	)		2,904,527


Net change in cash and cash equivalents		(1,880,822	)		(2,970,417	)
Cash and cash equivalents, beginning of period		2,576,416			8,417,203
Cash and cash equivalents, end of period	$	695,594		$	5,446,786

Cash paid for:
Interest	$	56,958		$	102,373
Income taxes	$	-		$	-

Supplemental non-cash financing activities:
Common stock issued for settlement of debt	$	325,298		$	2,268,539
Warrants issued for financing fees, net of issuance fees of $0 and $8,727, respectively	$	-		$	90,816
Initial recognition of right of use asset and liability	$	-		$	365,556

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Shuttle Pharmaceuticals Holdings, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2024

Note 1 – Organization and Liquidity

Organization and Line of Business

Shuttle Pharmaceuticals Holdings, Inc. (“we”, “us”, “our”, the “Company”) was originally formed as Shuttle Pharmaceuticals, LLC in the State of Maryland on December 18, 2012. On August 12, 2016, the Company filed articles of conversion with the State of Maryland to convert from an LLC to a C corporation, at which time the Company changed its name to Shuttle Pharmaceuticals, Inc. (“Shuttle”). In connection with the conversion the Company issued 5,625,000 shares of common stock in exchange for 100% of the outstanding membership interests in Shuttle prior to conversion. On June 4, 2018, Shuttle completed a reverse merger with Shuttle Pharmaceuticals Holdings, Inc. (then known as Shuttle Pharma Acquisition Corp, Inc.), a Delaware corporation, pursuant to which Shuttle, our operating entity, became a wholly owned subsidiary of the Company. All share numbers referenced herein reflect a 1-for-8 reverse split of our common stock on a post-split basis, which was effective as of August 13, 2024 (see Note 2).

The Company’s primary purpose is to develop and commercialize unique drugs for the sensitization of cancers and protection of normal tissues, with the goal of improving outcomes for cancer patients receiving radiation therapy. Shuttle has deployed its proprietary technology to develop novel cancer immunotherapies, producing a pipeline of selective HDAC inhibitors for cancer and immunotherapy applications. The Company’s HDAC platform is designed to target candidate molecules with potential roles in therapeutics beyond cancer, including autoimmune, inflammatory, metabolic, neurological and infectious diseases. The Company’s Ropidoxuridine product, which is used with radiation therapy to sensitize cancer cells, was initially funded by a Small Business Innovation Research (“SBIR”) contract provided by the National Cancer Institute (“NCI”), a unit of the National Institutes of Health (“NIH”). Ropidoxuridine has been further developed though the Company’s collaborations with scientists at the University of Virginia for use in combination with proton therapy to improve patient survival. Historically, and prior to the Company’s initial public offering in September 2022, the Company has obtained funding to develop products through NIH grants, including a product to predict late effects of radiation with metabolite biomarkers and develop prostate cancer cell lines in health disparities research.

The production and marketing of the Company’s products and its ongoing research and development activities will be and are subject to extensive regulation by numerous governmental authorities in the United States. Prior to marketing in the United States, any products or combination of products developed by the Company must undergo rigorous preclinical (animal) and clinical (human) testing and an extensive regulatory approval process implemented by the Food and Drug Administration (“FDA”) under the Food, Drug and Cosmetic Act. There can be no assurance that the Company will not encounter problems in its clinical trials that will cause the Company or the FDA to delay or suspend the clinical trials.

The Company’s success will depend in part on its ability to obtain patents and product license rights, maintain trade secrets, and operate without infringing on the proprietary rights of others, both in the United States and in other countries. There can be no assurance that patents issued to or licensed by the Company will not be challenged, invalidated or circumvented, or that the rights granted thereunder will provide proprietary protection or competitive advantages to the Company now or in the future.

Liquidity and Going Concern

Our unaudited condensed 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. The Company has incurred losses since inception and has a net loss of approximately $3.8 million and no revenues for the six months ended June 30, 2024 and has working capital of approximately $1.1 million as of June 30, 2024. In addition, the convertible note payable outstanding at June 30, 2024 includes covenants and certain cash payment requirements. On July 12, 2024, the Company informed the investor of its convertible note that the Company’s expected restatement of its financial statements for the years ended December 31, 2022 and 2023 constituted an event of default under the terms of the convertible note. On August 6, 2024, the Company paid $0.6 million to the investor of the convertible note and received a waiver from the investor related to the default. The funds paid are restricted and will be held as collateral to the balance owed under the convertible note (see Note 9). These conditions, and the Company’s ability to comply with such conditions, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued.

In January 2023, the Company entered into a securities purchase agreement with an institutional investor through which the Company sold a convertible note with a principal value of $4.3 million, along with a four-year warrant to purchase 127,260 shares of common stock, exercisable at $18.80 per share, providing the Company with approximately $3.6 million in net proceeds. To date, the warrant has not yet been exercised. However, the Company’s existing cash resources, marketable securities and the cash received from the equity offering and convertible note are not expected to provide sufficient funds to carry out the Company’s operations and clinical trials through the next twelve months.

The IPO and subsequent capital raise have supported operations, the manufacture of drug product and FDA approval of the IND for the Phase II clinical trial of Ropidoxuridine and radiation therapy in glioblastoma. The FDA recommended and the Company agreed to an expansion of the clinical trial, necessitating additional capital to complete the trial as well as fund ongoing operations. As a result, management had initiated a $4.5 million rights offering and submitted an application for a SBIR grant for non-dilutive funding for pre-clinical project through the NIH. The Company is also currently pursuing other financing. The ability of the Company to continue as a going concern is dependent upon its ability to successfully raise additional equity or debt financing to allow it to fund ongoing operations, conduct clinical trials and bring a drug candidate to commercialization to generate revenues.

The accompanying unaudited condensed consolidated financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities if the Company is unable to continue as a going concern.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and notes required by GAAP for annual financial statements. A complete discussion of the Company’s significant accounting policies is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all of the adjustments necessary to present the financial position of the Company as of June 30, 2024 and the results of operations and cash flows for the periods presented. The accompanying condensed consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the year-end consolidated balance sheet was derived from audited financial statements. The results of operations for the six months ended June 30, 2024 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the restated financial statements and related notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K/A filed with the SEC on September 3, 2024.

Reverse Stock Split

On August 13, 2024, in order to meet Nasdaq’s minimum bid price requirement of $1.00 per share (the “Minimum Bid Price Requirement”), the Company effectuated a 1-for-8 reverse stock split of its issued and outstanding common stock, rounding up to account for any fractional shares (the “Reverse Stock Split”). The Reverse Stock Split had no effect on the Company’s authorized shares of common stock or preferred stock and the par value will remain unchanged at $0.00001, respectively. Following the reverse stock split on August 13, 2024, the Company had a total of 2,111,235 shares issued and outstanding (or 2,106,233 on a post-split basis as of June 30, 2024). All common stock share, option, warrant and per share amounts (except our authorized but unissued shares) have been retroactively adjusted in these financial statements and related disclosures.

Basis of Consolidation

The unaudited condensed consolidated financial statements have been prepared on a consolidated basis with those of the Company’s wholly-owned subsidiaries, Shuttle Pharmaceuticals, Inc. and Shuttle Diagnostics Inc. All intercompany transactions and balances have been eliminated.

Correction of an Immaterial Error in the Prior Period Financial Statements

During the fourth quarter of 2023, the Company determined that the prior year consolidated financial statements had a misstatement caused by an immaterial classification error of certain research and development expenses in accordance with Accounting Standards Codification (“ASC”) 730. As a result, certain prior year amounts have been corrected for consistency with the current year presentation. The Company assessed the materiality of this change in presentation on prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” (ASC Topic 250, Accounting Changes and Error Corrections). Based on this assessment, the Company concluded that these error corrections in its unaudited condensed consolidated statements of operations are not material to any previously presented financial statements based upon overall considerations of both quantitative and qualitative factors. The corrections had no impact on the unaudited condensed consolidated balance sheet, unaudited condensed consolidated statements of cash flows, or unaudited condensed consolidated statement of changes in stockholders’ equity, to these financial statements, or for any previously presented interim or annual financial statements. Further, the corrections did not result in a change in quarterly or year-to-date operating losses, basic or diluted earnings per share, or working capital. The quarterly correction required for the three and six months ended June 30, 2023 was $93,708 and $182,715, respectively. Accordingly, the Company corrected the previously reported immaterial error for the three and six months ended June 30, 2023 in this Quarterly Report on Form 10-Q.

Schedule of the Error Correction

	June 30, 2023		Correction			Corrected June 30, 2023
Research and development expense	$	1,944,181	$	(182,715	)	$	1,761,466
General and administrative expense		281,918		182,715			464,633
Total	$	2,226,099	$	-		$	2,226,099

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Significant estimates are contained in the accompanying unaudited condensed consolidated financial statements for the recognition of research and development expenses, valuation of warrants and valuation of bifurcated derivative liabilities and other financial instruments.

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts and money market funds with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. As of June 30, 2024 and December 31, 2023, cash and cash equivalents consisted of the following:

Schedule of Cash and Cash Equivalents

	June 30,		December 31,
	2024		2023
Cash	$	645,594	$	1,550,098
Money market funds		50,000		1,026,318
Total cash and cash equivalents	$	695,594	$	2,576,416

Periodically, the Company may carry cash balances at financial institutions in excess of the federally insured limit of $250,000 per institution. The amount in excess of the FDIC insurance as of June 30, 2024 was approximately $0.4 million. The Company has not experienced losses on these accounts and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant.

Marketable Securities

Our investments in debt securities are carried at fair value. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and losses on trading of debt securities are charged to income.

The marketable securities held by the Company, which are classified as trading marketable securities, consisted of an outstanding balance of $1.6 million and $2.9 million as of June 30, 2024 and December 31, 2023, respectively. During the three months ended June 30, 2024 and 2023, the Company recognized interest income of $14,158 and $19,267, realized gains of $39,683 and $1,744, and unrealized loss of $27,964 and unrealized loss of $26,534, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized interest income of $35,611 and $35,955, realized gains of $43,720 and $1,744, and unrealized loss of $28,670 and unrealized gain of $11,528, respectively.

Fair Value of Financial Instruments

The Company follows accounting guidelines on fair value measurements for financial instruments measured on a recurring basis, as well as for certain assets and liabilities that are initially recorded at their estimated fair values. Fair Value is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial instruments:

	●	Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

	●	Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

	●	Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires a significant judgment or estimation.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires the Company to make judgments and consider factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded, may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange.

The carrying amounts of the Company’s financial instruments including cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments.

Set out below are the Company’s financial instruments that are required to be remeasured at fair value on a recurring basis and their fair value hierarchy as of June 30, 2024 and December 31, 2023:

June 30, 2024	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	1,642,995	$	-	$	-	$	1,642,995
Total Assets	$	1,642,995	$	-	$	-	$	1,642,995
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	359,919	$	359,919
Derivative Liability - Accelerated feature		-		-		504		504
Total Liabilities	$	-	$	-	$	360,423	$	360,423

December 31, 2023	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	2,887,215	$	-	$	-	$	2,887,215
Total Assets	$	2,887,215	$	-	$	-	$	2,887,215
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	410,660	$	410,660
Derivative Liability - Accelerated feature		-		-		3,852		3,852
Derivative Liability		-		-		3,852		3,852
Total Liabilities	$	-	$	-	$	414,512	$	414,512

Derivative Financial Instruments

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. 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 unaudited condensed consolidated statements of operations. For our liability classified derivative financial instruments, the Company used a Monte Carlo valuation model to value the derivative instruments at inception and on subsequent valuation dates. For our equity classified derivative financial instruments, we used a Black-Scholes option-pricing model at the grant date to value the derivative instrument. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the unaudited condensed consolidated balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within twelve (12) months of the balance sheet date.

Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the unaudited condensed consolidated statements of operations. The fair value of the warrants is estimated using a Black-Scholes pricing model or a Monte Carlo simulation.

Research and Development Expenses

Research and development expenses are charged to expense as incurred. Research and development expenses include, but are not limited to, product development, clinical and regulatory expenses, payroll and other personnel expenses, which include a certain portion of our chief executive officer, chief operating officer, chief financial officer and directors’ compensation. For the three and six months ended June 30, 2024 and 2023, a portion of personnel-related expenses and stock-based compensation expense for these individuals totaling $0.1 million and $0.3 million, respectively, and $0.2 million and $0.6 million, respectively, was included within research and development due to their active involvement in the research and development activities, materials, supplies, related subcontract expenses, and consulting costs.

Regarding the accounting treatment for reimbursements, GAAP provides limited guidance on the accounting for government grants received by for-profit companies. In accordance with ASC Topic 832, Government Assistance, as adopted January 1, 2022, we disclose certain types of government assistance received in the notes to the consolidated financial statements that includes: a) the nature of the transaction including the nature of the assistance being given, b) the accounting policies being used to account for the transaction and c) other provisions of relevance, where required. Depending on the type of grant or contract, we understand there is more than one acceptable alternative for the accounting treatment – a reduction of costs, a deferred credit to be amortized, revenue or other income. The Company has concluded that reimbursements received for R&D expenses incurred, are more akin to a reduction of costs and applies reimbursements against incurred research costs. There were no reimbursements received for the six months ended June 30, 2024 and 2023.

Net Loss Per Common Stock

Net loss per share of common stock requires presentation of basic earnings per share on the face of the unaudited condensed consolidated statements of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic earnings per share computation. In the accompanying unaudited condensed consolidated financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants unless the result would be antidilutive.

The dilutive effect of restricted stock units subject to vesting and other stock-based payment awards is calculated using the “treasury stock method,” which assumes that the “proceeds” from the exercise of these instruments are used to purchase common shares at the average market price for the period. The dilutive effect of convertible securities is calculated using the “if-converted method.” Under the if-converted method, securities are assumed to be converted at the beginning of the period, and the resulting shares of common stock are included in the denominator of the diluted calculation for the entire period being presented.

For the six months ended June 30, 2024 and 2023, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.

	June 30,		June 30,
	2024		2023
Convertible notes (Note 5)		80,744		155,378
Warrant (Note 6)		184,000		184,000
Restricted stock units (Note 6)		58,839		10,382
		323,583		349,760

Deferred Offering Costs

Pursuant to ASC 340-10-S99-1, costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of an offering as a reduction of additional paid-in capital. Deferred offering costs may consist of underwriting, legal, accounting, and other expenses incurred through the balance sheet date that are directly related to a proposed public offering. Should the proposed public offering prove to be unsuccessful, any deferred costs, as well as additional expenses to be incurred, will be expensed.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting Topic 280, “Segment Reporting-Improvements to Reportable Segment Disclosures,” which allows disclosure of one or more measures of segment profit or loss used by the chief operating decision maker to allocate resources and assess performance. Additionally, the standard requires enhanced disclosures of significant segment expenses and other segment items, as well as incremental qualitative disclosures on both an annual and interim basis. This guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The adoption of this new guidance is not expected to have a significant impact on our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes Topic 740, “Income Tax-Improvements to Income Tax Disclosures,” which requires enhanced disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. This guidance is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted and should be applied on a prospective basis, however retrospective application is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated and condensed financial statements and disclosures included within notes to consolidated and condensed financial statements.

Note 3 – Leases

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments as of the lease commencement date. Operating lease expense is recognized on a straight-line basis over the lease term.

During the six months ended June 30, 2023, the Company had a lease agreement which allowed for the use of a laboratory facility for a monthly payment of $6,480. The laboratory lease commenced on October 1, 2018 and expired on October 31, 2023.

The Company currently has a lease agreement which allows for the use of a laboratory facility, entered into on February 16, 2023, with base rent of $7,206 per month for a period of 64 months, which increases at the rate of 3% per year, that commenced June 1, 2023. The lease included a six-month 50% rent abatement upon commencement. Additional common area maintenance (“CAM”) fees are charged monthly and revised annually. The estimated monthly CAM fees are $3,300 per month for the first year of the lease, which are being expensed as incurred. An irrevocable letter of credit (“LOC”) for the security deposit of $43,234 and base rent of $3,891, including 50% abatement, and $3,315 of CAM cost, was due and paid on execution of the lease agreement. Alexandria Real Estate (ARE-QRS-CORP) is the beneficiary of the LOC, and the expiry date of the LOC is March 1, 2025.

The following summarizes the ROU lease expense components and cash flow information for the Company’s operating leases:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Operating lease cost	$	22,947		$	25,193		$	45,894		$	42,737
Variable lease cost		9,937			-			20,377			-
Sublease income		(2,163	)		(2,121	)		(4,326	)		(4,242	)
Total lease cost	$	30,721		$	23,072		$	61,945		$	38,495

Cash paid for operating cash flows from operating leases	$	22,707		$	23,331		$	45,189		$	42,771
Right-of-use assets obtained in exchange for new operating lease liability	$	-		$	-		$	-		$	365,556

Supplemental balance sheet information related to operating leases was as follows:

	2024			2023
	June 30,			December 31,
	2024			2023

Weighted-average remaining lease term (year)		4.18			4.98
Weighted-average discount rate		10.48	%		10.46	%

Future non-cancelable minimum lease payments under the operating lease liability as of June 30, 2024, are as follows:

Years Ended December 31,
2024 (excluding the six months ended June 30, 2024)	$	46,313
2025		94,246
2026		97,074
2027		99,986
2028		68,235
Total future minimum lease payments		405,854
Less: imputed interest		(76,737	)
Present value of payments	$	329,117

Note 4 – Notes Payable-Related Party

During the three and six months ended June 30, 2023 the Company incurred $2,588 and $6,825, respectively, in interest expense. During the three and six months ended June 30, 2023 principal payments of $139,229 and $685,473, respectively, and accrued interest of $25,917 and $102,373 were paid, respectively, on notes to related parties. The principal and accrued interest for these notes were fully paid by December 31, 2023.

Note 5 – Convertible Notes and Notes Payable

Alto Opportunity Master Fund, SPC

On January 11, 2023, the Company entered into a securities purchase agreement (the “SPA”) with Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B, a Cayman entity (the “Investor”), pursuant to which the Company sold to the Investor a $4,300,000 convertible note (the “Alto Convertible Note”) and warrant (the “Warrant”) to purchase 127,260 shares of common stock, exercisable at $18.80 per share, in exchange for gross proceeds of $3,935,000 (the “Investment Amount”) (See Note 7). The Company determined that the Warrant contains a net cash settlement feature at inception and categorized the Warrant as a liability in the accompanying unaudited condensed consolidated financial statements. The Alto Convertible Note matures on March 11, 2025, but may be extended at the option of the noteholder. The Alto Convertible Note amortizes on a monthly basis and the Company can make such monthly amortization payments in cash or, subject to certain equity conditions, in registered shares of common stock or a combination thereof. Installments may be deferred by the noteholder, resulting in a variable interest rate. However, the effective interest rate is approximately 218% based on the internal rate of return calculated on a series of cash flows that occur at regular intervals. For equity repayment, the Alto Convertible Note is convertible into shares of common stock at a price per share equal to the lower of (i) $18.80, (ii) 90% of the three lowest daily VWAPs of the 15 trading days prior to the payment date, or (iii) 90% of the VWAP of the trading day prior to payment date. The noteholder may convert at any time at a fixed price of $18.80 per share. The noteholder has an acceleration of installment amount conversion option (the “Acceleration Option”), whereby the noteholder, with certain share percentage limitations, can convert to common stock any outstanding installment amount at an amount equal to the installment amount plus five times (5x) the installment amount at any time. The Company has determined the Acceleration Option is an embedded derivative within the host instrument and has bifurcated it from the host instrument and recorded it as a derivative liability valued at $1,442,000 at inception, using a Monte Carlo simulation model (Note 7). The Convertible Note is repayable over 26 months and bears interest at the rate of 5% per annum. Additionally, the note contains certain redemption options and “Make Whole” provisions.

In conjunction with entry into the SPA, the Company entered into a series of related agreements, including a security agreement (the “Security Agreement”), an intellectual property security agreement (the “IP Security Agreement”) and a subsidiary guaranty (the “Subsidiary Guaranty”). The security agreements and guaranty allow, among other things, for the Investor to have a security interest in and place a lien on all of the Company’s assets and intellectual property until such time as the Alto Convertible Note is paid off. In addition, the SPA called for the Company to enter into a springing deposit account control agreement (the “Springing DACA”), which, in the event the Company defaults on its repayment of the Alto Convertible Note, would allow the Investor to assume control of the Company’s bank account only with regard to any funds remaining outstanding under the Alto Convertible Note. As such, in conjunction with entry into the SPA, the Company established a separate bank account in which it deposited the Investment Amount and pursuant to which the Company, the Investor and the bank holding the Investment Amount, First Republic Bank, entered into the Springing DACA agreement. As the Investment Amount had been held at First Republic Bank, in light of certain banking crises then affecting smaller banks, on March 12, 2023, the Company and the Investor moved the Investment Amount from First Republic Bank, after which time the Springing DACA was no longer in effect. Further, pursuant to amendments to the SPA entered into in May and June of 2023, the Company and the Investor agreed that all of the Investment Amount would be released to the Company and the relevant provision of the SPA which required the Springing DACA would no longer be deemed applicable. In addition, the Company granted the Investor the option to purchase up to an additional $10.0 million in convertible notes and warrants on substantially the same terms as the Alto Convertible Note and Warrant, excluding the Springing DACA requirement, with such option to be effective through December 31, 2025. The agreement offers the investor an opportunity to participate in future capital raises at substantially similar terms as the January 11, 2023 agreement. The Company expects that such subsequent convertible notes and warrants would be issued on substantially similar terms as the January 11, 2023 initial agreement, as amended, thus providing the Company the opportunity to negotiate certain aspects of the agreement.

Boustead Securities, LLC (“Boustead”) served as a placement agent for the Alto Convertible Note and Warrant offering and received $345,000 cash compensation and a warrant to purchase 8,909 shares of common stock, exercisable at $18.80 per share. The Boustead warrant was determined to be an equity instrument valued on a non-recurring basis. The Company used the Black Scholes valuation model using a term of five years, volatility of 110%, a risk-free rate of 3.53% for a value of $99,543.

The Company allocated the finance costs related to the Boustead placement agent fee of $345,000, based on the relative fair market values of the Convertible Note and warrants issued. The allocation of the financing costs applied $232,027 to the debt component as a debt discount that is being amortized to interest expense over the term of the Convertible Note, $104,245 to the warrant derivative liability component, expensed as a finance fee, and $8,727 to the equity warrant as a reduction in additional paid in capital.

The Company allocated to the debt component of the note an original discount of $300,000, legal fees of $65,000, $215,000 for additional interest fees on day one added to note principal, $1,442,000 for the accelerated conversion feature, and $1,288,543 for the fair value of warrants, resulting in an additional $3,310,543 debt discount that is being amortized to interest expense over the term of the Alto Convertible Note.

During the three and six months ended June 30, 2024, the Company recorded interest expense of $430,685 and $928,200, respectively, which included amortization of debt discount as interest expense of $386,505 and $832,014, respectively. During the three and six months ended June 30, 2024, the Company settled $0 and $235,200 of principal, and settled $0 and $18,783 of accrued interest, which settlements were made in the form of 0 and 78,197 shares of common stock. The Company also settled for cash during the six months ended June 30, 2024 $501,667 of principal and $56,958 of accrued interest for a total of $558,628 of principal and interest paid in cash.

During the three and six months ended June 30, 2023, the Company recorded interest expense of $729,351 and $1,328,682 respectively, which included amortization of debt discount as interest expense of $549,125 and $1,012,177 respectively. During the three and six months ended June 30, 2023, the Company paid $1,527,750 and $1,593,900 of principal, respectively, and paid $220,689 and $240,831, respectively, of accrued interest, which payments were made in the form of 228,489 and 234,864 shares of common stock, respectively, during the three and six months ended June 30, 2023.

As of June 30, 2024, the outstanding principal for the convertible note was $1,517,989 and the debt discount remaining was $691,754, with a net convertible note carrying value of $826,235.

Note 6 – Stockholders’ Equity

Common Stock

During the three and six months ended June 30, 2024, the Company issued:

	●	0 and 78,197 shares of common stock to settle $0 and $235,200 of principal and $0 and $18,783 of interest on a convertible note and incurred $0 and $71,315 of loss on settlement, respectively.
	●	3,722 and 19,347 shares of common stock issued for vesting of restricted stock units, respectively.

During the three and six months ended June 30, 2023, the Company issued:

●

228,489 and 234,864 shares of common stock to settle $1,527,750 and $1,593,900 of principal and $220,689 and $240,831 of interest, respectively, on a Convertible Note and incurred $415,553 and $433,807 of loss on settlement, respectively.

Warrants

In connection with the January 2023 Alto Convertible Note, Boustead was granted warrants to purchase 8,909 shares of common stock, at an exercise price of $18.80 per share (Note 5). In addition, Alto was granted warrants to purchase 127,260 shares of common stock, at an exercise price of $18.80 per share (Note 5, 7).

A summary of activity regarding all warrants issued for the six months ended June 30, 2024 were as follows:

Schedule of Warrants Activity

	Number of		Weighted Average		Average
	Warrants Shares		Exercise Price		Life (years)
Outstanding, December 31, 2023		184,000	$	23.20		2.77
Granted		-		-		-
Outstanding, June 30, 2024		184,000	$	23.20		2.29

The intrinsic value of the warrants as of June 30, 2024 is $0. All of the outstanding warrants are exercisable as of June 30, 2024.

Equity Incentive Plan

Our 2018 Equity Incentive Plan (the “2018 Plan”) provides for equity incentives to be granted to our employees, executive officers, directors and key advisers and consultants. Equity incentive grants may be made in the form of stock options with an exercise price of not less than the fair market value of the underlying shares as determined pursuant to the 2018 Equity Incentive Plan, restricted stock awards, other stock-based awards, or any combination of the foregoing. The 2018 Equity Incentive Plan is administered by the Company’s compensation committee. We have reserved 3,000,000 shares of our common stock for issuance under the 2018 Equity Incentive Plan. As of June 30, 2024, 138,234 shares have been granted under the 2018 Equity Incentive Plan, of which 79,395 shares have vested.

Restricted Stock Units

We may grant restricted stock units (“RSU”) under our 2018 Plan. RSUs are bookkeeping entries representing an amount equal to the fair market value of one share of our common stock. Subject to the provisions of our 2018 Plan, the administrator determines the terms and conditions of RSUs, including the vesting criteria and the form and timing of payment. Notwithstanding the foregoing, the administrator, in its sole discretion, may accelerate the time at which any restrictions will lapse or be removed. RSUs granted typically vest annually in one third increments from the date of appointment.

During the three and six months ended June 30, 2024 and 2023, pursuant to agreements with officers and consultants, 28,455 and 53,455, respectively and 4,291 and 7,416 RSUs, respectively with a value of $100,000 and $141,840, respectively, and $47,400 and $95,400, respectively, were granted and compensation expense for RSUs of $182,611 and $57,855, respectively, was incurred. During the three and six months ended June 30, 2024 and 2023, $13,033 and $46,986, respectively, and $41,190 and $41,190, respectively was included in compensation under Research and Development.

As of June 30, 2024, there was $190,779 of unrecognized RSU compensation cost related to non-vested stock-based compensation arrangements which is expected to be recognized over a weighted-average period of 1.97 years.

A summary of activity regarding the Restricted Stock Units issued follows:

	Number of RSUs			Weighted Average Fair Value Per RSU
Outstanding, December 31, 2023		24,731		$	11.76
Granted		53,455			2.65
Vested		(19,347	)		7.58
Outstanding, June 30, 2024		58,839		$	4.87

Rights Offering and Financing Commitment

On February 7, 2024, the Company and its wholly-owned subsidiary, Shuttle Diagnostics, Inc., entered into a securities purchase agreement (the “Purchase Agreement”) with SRO, LLC, a Nevada limited liability company, pursuant to which SRO LLC agreed to commit to purchasing from the Company $2,250,000 of units from the Company, with each Unit consisting of (i) one share of the Company’s common stock, (ii) a warrant to purchase one share of the Company’s common stock exercisable at a purchase price of $18.80 per share, and (iii) a percentage of equity interest in Diagnostics such that, assuming the sale of all $2,250,000 of Units, SRO LLC will own a 22% interest in Diagnostics. Pursuant to the terms of the Purchase Agreement, the Units will be sold at a per Unit price equal to 90% of the VWAP of the Company’s common stock for the five trading days immediately preceding closing. The parties entered into the Purchase Agreement in anticipation of the Company commencing a rights offering (the “Rights Offering”) pursuant to which the Company intends to offer a total of $4,500,000 of Units to existing stockholders, which includes the $2,250,000 of Units being sold to SRO LLC, an entity which is controlled by Keith Moore, Executive Chairman of Boustead & Company Limited, an affiliate of Boustead.

The Company filed an initial registration statement on Form S-1 (the “Form S-1”) with the SEC in April 2024 related to the registration of subscription rights to purchase the Units to be sold in the Rights Offering. The Form S-1 has not been declared effective as of the date these unaudited condensed consolidated financial statements were issued. Upon the Form S-1 being declared effective, the Purchase Agreement allows SRO LLC up to 60 days to raise the initial $2,250,000, which funds will be placed in escrow with Sutter Securities, Inc. (“SSI”), an affiliate of BSL, pursuant to the terms of an escrow agreement entered into between the Company, Shuttle Diagnostics, Inc., BSL and SSI on February 7, 2024 (the “Escrow Agreement”). The funds will remain in escrow up until closing on the Rights Offering. In addition, in the event the Company fails to raise the full $4,500,000 in the Rights Offering, SRO LLC agreed to a backstop commitment pursuant to which it would have the right to purchase any remaining Units not purchased by existing Company stockholders in the Rights Offering, up to an additional $2,250,000 (the “Back-up Contingency”). Unless the parties waive the conditions to closing, in the event the full $4,500,000 is not raised, whether through SRO LLC or through the Company’s existing stockholders, the Company will not close on the offering and any funds raised and held in escrow will be returned to investors.

In conjunction with its entry into the Purchase Agreement, on February 7, 2024, the Company entered into a placement agent and advisory services agreement (the “Placement Agent Agreement”) with BSL, pursuant to which BSL and BSL’s affiliates will provide the Company with regular and customary financial consulting advice and will act as placement agent, on a best efforts basis, for the Rights Offering. In exchange for its services, BSL will receive a commitment fee equal to $112,500 upon the earlier of the Company filing the registration statement on Form S-1 registering the Rights Offering or upon such date as the Company terminates the Rights Offering, a commission equal 8% of the gross proceeds disbursed to the Company upon closing the Rights Offering, and $40,000 in diligence and related expenses.

As of June 30, 2024, the Company has incurred $142,000 in costs directly related to the planned Rights Offering and initially deferred these costs as other current assets in the unaudited condensed consolidated balance sheet. However, since that date, the Rights Offering has not been consummated and, therefore, the deferred costs have been expensed. As of June 30, 2024, there were no deferred costs recorded on the Company’s unaudited condensed consolidated balance sheet. Subsequent to June 30, 2024, the Company is pursuing other financing options.

Note 7 – Derivative Liabilities

Fair Value Assumptions Used in Accounting for Derivative Liabilities

ASC 815 requires us to assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.

In January 2023, in connection with the Alto Convertible Note, the Company issued warrants to purchase 127,260 shares of common stock, with an exercise price of $18.80 per share, valued at inception at $1,189,000 and as of June 30, 2024, at $359,919. The Company determined our derivative liabilities from the warrants issued in relation to the Alto Convertible Note do not satisfy the classification as equity instruments due to the existence of a certain net cash settlement provision that is not within the sole control of the Company. In addition, there are certain down round provisions that could reduce the exercise price if the Company issues securities at lower prices in the future.

The Company has determined the Acceleration Option is an embedded derivative within the host instrument and has bifurcated it from the host instrument and recorded it as a derivative liability valued at $1,442,000, using a Monte Carlo simulation model. The Company determined our derivative liability from the noteholder’s Acceleration Option for the Alto Convertible Note is not clearly and closely related to the host and should be thus accounted for as a bifurcated derivative liability.

The Company classified these derivative liabilities as a Level 3 fair value measurement and used the Monte Carlo pricing model to calculate the fair value as of January 11, 2023 ($2,631,000 included in debt discount) and June 30, 2024 ($360,423). Key inputs for the simulation are summarized below. The Monte Carlo simulation uses an implied VWAP for the January 11, 2023 valuation date. The implied VWAP was backsolved by setting the summation of the parts (e.g., derivatives and debt without derivatives) equal to the cash proceeds. The simulation was then iterated and manipulated to solve for the implied share price, which was approximately $12.64 per share (or an approximate 14% discount to the quoted market VWAP on January 11, 2023).

The key inputs for the Monte Carlo simulation as of June 30, 2024, were as follows:

Net cash settlement and down round key valuation inputs – warrants*
Annualized volatility		89.76% - 99.20	%
Risk-free interest rate		4.61% - 5.48	%
Quoted VWAP	$	3.12
Exercise price	$	18.80
Probability assessment		2.5% - 30	%
Illiquidity discount		-15	%
Time period (years)		0.11 - 2.53

Based on a Monte Carlo simulation analysis of 250,000 iterations

Acceleration option key valuation inputs*
Annualized volatility		64.76% - 74.98	%
Risk-free interest rate		5.23% - 5.48	%
Quoted VWAP	$	3.12
Illiquidity discount		-15	%
Time period (years)		0 - 0.7

Based on a Monte Carlo simulation analysis of 250,000 iterations

The following table summarizes the changes in the derivative liabilities:

Schedule of Derivative Liabilities

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Warrants			Accelerated Feature
Balance - December 31, 2023	$	410,660		$	3,852
Gain on change in fair value		(196,045	)		(1,817	)
Balance - March 31, 2024	$	214,615		$	2,035
(Gain) loss on change in fair value		145,304			(1,531	)
Balance - June 30, 2024	$	359,919		$	504

Note 8 – Related Party transactions

On September 14, 2022, we entered into a manufacturing agreement with TCG GreenChem, Inc. (“TCG GreenChem”), the U.S. subsidiary of TCG Lifesciences Pvt Ltd., a global contract research and manufacturing services company located in India. Dr. Chis Senanayake, one of our independent directors, is CEO and CSO of TCG GreenChem and CSO of TCG Lifesciences Pvt Ltd. TCG GreenChem was contracted for process research, development and cGMP compliant manufacture of IPdR. During the six months ended June 30, 2024 and 2023, the Company expensed $0 and $608,000, respectively, related to these services.

Note 9 – Subsequent Events

See Note 2, Summary of Significant Accounting Policies, Reverse Stock Split, above.

Alto Opportunity Master Fund, SPC

On July 12, 2024, the Company informed the Investor in the Alto Convertible Note that the Company’s expected restatement of its consolidated financial statements for the years ended December 31, 2022 and 2023 constituted an event of default under the terms of the Alto Convertible Note. On August 6, 2024, the Company paid $600,000 to the Investor, which funds will be held as collateral to the balance owed under the Alto Convertible Note, and received a waiver from the Investor related to the default.

Alliance Global Partners

On July 30, 2024, the Company engaged A.G. P./Alliance Global Partners (“AGP”) to serve as exclusive underwriter, placement agent or advisor in any public or private offering or financing (as defined, the “Offering”) of up to $10.0 million.

Phase II study of Ropidoxuridine

On August 8, 2024, the Company entered into a work order (the “Work Order”) with Theradex Systems, Inc., a New Jersey contract research organization (“CRO”) for purposes of supporting the Company’s Phase II Study of Ropidoxuridine as a Radiation Sensitizing Agent During Radiotherapy in Patients with Newly Diagnosed IDH-Wildtype Glioblastoma with Unmethylated MGMT Promotor.” As such, Shuttle Pharma is now in the process of signing up six clinical sites where the clinical studies will be performed – two of which have completed initial site initiation visits and one of which is ready to enroll patients – and where the CRO will oversee such studies.

Under the terms of the Work Order, the CRO will oversee the studies for a period of 53 months (the “Term”), including overseeing and monitoring the regulatory aspects of the Phase II clinical trial, and managing the documentation surrounding the clinical trial in exchange for a fee of approximately $2.3 million, payable in stages and based upon services performed during the Term of the study.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis should be read in conjunction with our unaudited financial statements and the related notes thereto included elsewhere in this quarterly report, and the audited consolidated financial statements and notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 21, 2024. The Management’s Discussion and Analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations, and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this quarterly report. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, those noted under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in subsequent reports that we file with the U.S. Securities and Exchange Commission (the “SEC”).

We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this quarterly report, except as required by U.S. federal securities laws.

Overview

Founded by Georgetown University Medical School faculty members, Shuttle Pharmaceuticals Holdings, Inc. (“Shuttle” or the “Company”) is a discovery and development stage pharmaceutical company leveraging our proprietary technology to develop novel therapies that are designed to cure cancer. Originally formed as Shuttle Pharmaceuticals, LLC in 2012, our goal is to extend the benefits of cancer treatments by leveraging insights into cancer therapy with surgery, radiation therapy, chemotherapy and immunotherapy. While there are several therapies being developed with the goal of curing cancer, one of the most effective and proven approaches to this is radiation therapy (RT). We are developing a pipeline of products designed to address the limitations of the current standard of cancer therapies. We believe that our product candidates will enable us to deliver cancer treatments that are safer, more reliable and at a greater scale than that available with the current standard of care.

Operations to date have focused on continuing our research and development efforts to advance Ropidoxuridine clinical testing and improved drug formulation, to advance HDAC6 inhibitor (SP-2-225) preclinical development and explore new Small Business Innovation Research (SBIR) contract work on predictive biomarkers of radiation response, as well as prostate cell lines for health disparities research. We have received SBIR contract funding from the National Institutes of Health (“NIH”) for the aforementioned projects. The clinical development of Ropidoxuridine has shown drug bioavailability and a maximum tolerated dose has been established for use in Phase 2 clinical trials. TCG GreenChem, Inc. (“TCG GreenChem”), with whom we have contracted for process research, development and cGMP compliant manufacture of IPdR, has successfully completed the manufacturing campaign for the active pharmaceutical ingredient (API) of Ropidoxuridine for use in the Company’s upcoming Phase 2 clinical trial in brain cancer patients undergoing radiation therapy. Shuttle has also worked with University of Iowa Pharmaceuticals to develop the formulation and produce the capsules, which have been shipped to contract research organization (CRO) Theradex Oncology for distribution to clinical trial sites. Both activities have now been completed. In addition, Shuttle received approval from the FDA to begin the clinical trial. The FDA made recommendations to expand the clinical trial and we agreed with the recommendation. Meetings with clinical sites to review the protocol documents have occurred and FDA required Institutional Review Board approval has been received from the central internal review board, or IRB. With FDA recommended changes incorporated into the revised protocol, the Company believes it remains on track to commence the Phase 2 clinical study in the second quarter of 2024. The radiation biomarker project and the health disparities project have each been completed and the company is following up with plans for clinical validation and potential commercialization. Changes in operational, administrative, legal and professional expenses related to our operations are set forth in more detail in the discussion below.

Reverse Stock Split

On August 13, 2024, in order to meet Nasdaq’s minimum bid price requirement of $1.00 per share (the “Minimum Bid Price Requirement”), the Company effectuated a 1-for-8 reverse stock split of its issued and outstanding common stock, rounding up to account for any fractional shares (the “Reverse Stock Split”). The Reverse Stock Split had no effect on the Company’s authorized shares of common stock or preferred stock. Following the reverse stock split on August 13, 2024, the Company had a total of 2,111,235 shares issued and outstanding (or 2,106,233 on a post-split basis as of June 30, 2024). All share, option, warrant and per share amounts (except our authorized outstanding) have been retroactively restated in these financial statements and related disclosures.

Results of Operations

Comparison of the three months ended June 30, 2024 and 2023

The following table summarizes the results of our operations:

	Three Months Ended
	June 30,
	2024			2023			Change			%
Revenue	$	-		$	-		$	-			-
Operating expenses:
Research and development		645,719			839,665			(193,946	)		(23	)%
General and administrative		310,038			209,279			100,759			48	%
Legal and professional		526,877			416,688			110,189			26	%
Total operating expenses and loss from operations		1,482,634			1,465,632			17,002			1	%
Other income (expense):
Interest expense - related parties		-			(2,588	)		2,588			(100	)%
Interest expense		(430,685	)		(729,351	)		298,666			(41	)%
Gain on sale of marketable securities		39,683			1,744			37,939			2,175	%
Change in fair value of marketable securities		(27,964	)		(26,534	)		(1,430	)		5	%
Interest income		14,158			19,267			(5,109	)		(27	)%
Change in fair value of derivative liabilities		(143,773	)		434,275			(578,048	)		(133	)%
Loss on settlement of convertible debt		-			(415,553	)		415,553			(100	)%
Total other expense		(548,581	)		(718,740	)		170,159			(24	)%
Net loss	$	(2,031,215	)	$	(2,184,372	)	$	153,157			(7	)%

Research and Development. Research and development (“R&D”) expense was $0.6 million for the three months ended June 30, 2024, as compared to $0.8 million for three months ended June 30, 2023. The decrease of $0.2 million, or 23%, is primarily related to the Company having completed production of the drug product and waiting for the initiation of trials.

R&D compensation related expenses were $0.3 million in the three months ended June 30, 2024 as compared to $0.3 million in the three months ended June 30, 2023. Compensation related expenses were 48% for the three months ended June 30, 2024, representing an increase from 39% of total R&D in the three months ended June 30, 2023. Subcontract work made up 42% of total R&D expenses in the three months ended June 30, 2024 and 56% of total R&D expenses during the three months ended June 30, 2023.

General and Administrative Expenses. General and Administrative expenses in the three months ended June 30, 2024 increased by $0.1 million, or 48% to $0.3 million in the three months ended June 30, 2024, compared to $0.2 million in the three months ended June 30, 2023.

Legal and Professional Expenses. During the three months ended June 30, 2024, legal and professional expenses increased by $0.1 million or 26% to $0.5 million compared to $0.4 million in the same period in the prior year. The increase in legal and professional fees was primarily due to increases in our expenses related to our public filing requirements, contracts and financing related work.

Other Income Expense. Other expense was $0.5 million for the three months ended June 30, 2024, which consisted of $0.4 million in interest expense on convertible loans, interest income of $14 thousand, change in marketable securities of $28 thousand, and a loss on change in fair value of derivative liabilities of $0.1 million. Other income was $0.7 million for the three months ended June 30, 2023, which consisted of $0.7 million in interest expense on convertible loans, $3 thousand in interest expense on related party loans, interest income of $19 thousand, loss on settlement of convertible debt of $0.4 million, unrealized loss on marketable securities of $26 thousand, and a gain on change in fair value of derivative liability of $0.4 million. The $0.4 million gain in fair value of derivative liability resulted from the fair value measurement using the Monte Carlo pricing model and the impact of the decrease in the market price of warrant shares.

Comparison of the six months ended June 30, 2024 and 2023

The following table summarizes the results of our operations:

	Six Months Ended
	June 30,
	2024			2023			Change			%
Revenue	$	-		$	-		$	-			-
Operating expenses:
Research and development		1,231,823			1,761,466			(529,643	)		(30	%)
General and administrative		634,647			464,633			170,014			37	%
Legal and professional		1,001,011			784,312			216,699			28	%
Total operating expenses and loss of operations		2,867,481			3,010,411			(142,930	)		(5	%)
Other income (expense):
Interest expense - related parties		-			(6,825	)		6,825			(100	%)
Interest expense		(928,200	)		(1,328,682	)		400,482			(30	%)
Interest income		35,611			35,955			(344	)		(1	%)
Finance fee		-			(104,245	)		104,245			(100	%)
Change in fair value of derivative liabilities		54,089			1,675,275			(1,621,186	)		(97	%)
Gain on sale of marketable securities		43,720			1,744			41,976			2,407	%
Change in fair value of marketable securities		(28,670	)		11,528			(40,198	)		(349	%)
Loss on settlement of convertible debt		(71,315	)		(433,807	)		362,492			(84	%)
Total other expense		(894,765	)		(149,057	)		(745,708	)		500	%
Net loss	$	(3,762,246	)	$	(3,159,468	)	$	(602,778	)		19	%

Research and Development. Research and development (“R&D”) expense was $1.2 million for the six months ended June 30, 2024, as compared to $1.8 million for six months ended June 30, 2023. The decrease of $0.5 million, or 30%, is primarily related to the Company having completed production of the drug product and waiting for the initiation of trials.

R&D compensation related expenses were $0.6 million in the six months ended June 30, 2024 as compared to $0.9 million in the six months ended June 30, 2023. Compensation related expenses were 52% for the six months ended June 30, 2024, representing an increase from 51% of total R&D in the six months ended June 30, 2023. Subcontract work made up 38% of total R&D expenses in the six months ended June 30, 2024 and 56% of total R&D expenses during the six months ended June 30, 2023.

General and Administrative Expenses. General and Administrative expenses in the six months ended June 30, 2024 increased by $0.2 million, or 37% to $0.6 million in the six months ended June 30, 2024. The increase in general and administrative expenses was primarily due to a restricted stock-based grant to an officer of the Company valued at $42 thousand, and increases in marketing, advertising and filing expenses.

Legal and Professional Expenses. During the six months ended June 30, 2024, legal and professional expenses increased by $0.2 million or 28%. The increase in legal and professional fees was primarily due to increases in our expenses related to our public filing requirements, contracts and financing related work.

Other Income Expense. Other expense was $0.9 million for the six months ended June 30, 2024, which consisted of $0.9 million in interest expense on convertible loans, interest income of $36 thousand, loss on settlement of convertible debt of $71 thousand, change in marketable securities of $29 thousand, and a gain on change in fair value of derivative liabilities of $54 thousand. Other expense was $0.1 million for the six months ended June 30, 2023, which consisted of $1.3 million in interest expense on convertible loans, $7 thousand in interest expense on related party loans, interest income of $36 thousand, finance fee on convertible loans of $0.1 million, loss on settlement of convertible debt of $0.4 million, gain on sale of marketable securities of $2 thousand, unrealized gain on marketable securities of $12 thousand, and a gain on change in fair value of derivative liabilities of $1.7 million. The $1.7 million gain in fair value of derivative liability resulted from the fair value measurement using the Monte Carlo pricing model and the impact of the decrease in the market price of warrant shares.

Liquidity and Capital Resources

The IPO and subsequent capital raise have supported operations, the manufacture of drug product and FDA approval of the IND for the Phase 2 clinical trial of Ropidoxuridine and radiation therapy in glioblastoma. The FDA recommended and the Company agreed to an expansion of the clinical trial, necessitating additional capital to complete the trial as well as fund ongoing operations. As a result, management has submitted an application for a SBIR grant for non-dilutive funding for pre-clinical project through the NIH. The Phase II clinical trial was also approved by the Institutional Review Board “IRB” in June, 2024. In August 2024, the Company took action to pursue a separate capital raise of up to $10.0 million and entered into a work order with a contract research organization (“CRO”) for purposes of supporting the Company’s Phase II Study of Ropidoxuridine. Under the terms of the work order, the CRO will oversee the studies for a period of 53 months in exchange for a fee of approximately $2.3 million, payable in stages and based upon services performed during the study. The ability of the Company to continue as a going concern is dependent upon its ability to successfully raise additional equity or debt financing to allow it to fund ongoing operations, conduct clinical trials and bring a drug candidate to commercialization to generate revenues.

Balance Sheet Data:

	June 30,		December 31,
	2024		2023		Change			%
Current assets	$	2,485,333	$	5,593,005	$	(3,107,672	)		(56)	%
Current liabilities		1,384,620		1,042,237		342,383			33	%
Working capital	$	1,100,713	$	4,550,768	$	(3,450,055	)		(76)	%

As of June 30, 2024, total current assets were $2.5 million and total current liabilities were $1.4 million, resulting in working capital of $1.1 million. As of December 31, 2023, total current assets were $5.6 million and total current liabilities were $1.0 million, resulting in a working capital of $4.6 million. As of June 30, 2024, the current assets primarily resulted from $0.7 million cash and $1.6 million marketable securities, with the decrease from December 31, 2023 being primarily due to ongoing cash burn from our R&D programs, filing expenses and general operations. The increase in current liabilities is primarily due to the current portion of the $1.0 million convertible note and accrued interest that increased $0.3 million and an increase in accounts payable of $82 thousand.

Cash Flows from Operating Activities

	Six Months Ended
	June 30,
	2024			2023			Change			%
Cash used in operating activities	$	(2,638,425	)	$	(2,984,039	)	$	345,614			(12	)%
Cash provided by (used in) investing activities	$	1,259,270		$	(2,890,905	)	$	4,150,175			(144	)%
Cash provided by (used in) financing activities	$	(501,667	)	$	2,904,527		$	(3,406,194	)		(117	)%
Cash on hand	$	695,594		$	5,446,786		$	(4,751,192	)		(87	)%

To date, we have not generated positive cash flows from operating activities. For the six months ended June 30, 2024, net cash flows used in operating activities was $2.6 million, consisting of a net loss of $3.8 million, increased by a gain on change in derivative liabilities of $54 thousand, offset by amortization of debt discount of $0.8 million, loss on settlement of convertible debt of $71 thousand, accrued interest settled with common stock of $19 thousand, stock-based compensation of $183 thousand and increased by a net change in working capital of $85 thousand. For the six months ended June 30, 2023, net cash flows used in operating activities was $3.0 million, consisting of a net loss of $3.2 million, increased by a gain on change in derivative liabilities of $1.7 million, offset by amortization of debt discount of $1.1 million, loss on settlement of convertible debt of $0.4 million, accrued interest settled with common stock of $0.2 million, stock-based compensation of $58 thousand and further reduced by a net change in working capital of $12 thousand.

Cash Flows from Investing Activities

For the six months ended June 30, 2024, we invested in trading marketable securities for $36 thousand and received $1.3 million in proceeds from disposition of marketable securities. For the six months ended June 30, 2023, we invested in trading marketable securities for $3.0 million and received $80 thousand in proceeds from disposition of marketable securities.

Cash Flows from Financing Activities

For the six months ended June 30, 2024, we paid $0.5 million related to payments on a convertible note. For the six months ended June 30, 2023, we received a net of $3.6 million from the sale and issuance of a convertible note payable and warrants and repaid $0.7 million in related party notes payable.

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.

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 well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in the notes to our unaudited condensed consolidated financial statements included elsewhere in this report, we believe that the following accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates.

Our most critical accounting policies and estimates relate to the following:

	●	Research and Development Expenses
	●	Fair Value of Derivative Financial Instruments
	●	Initial Measurement of Equity-Based Warrants

Research and Development

Research and development expenses are expensed as incurred and, prior to our initial public offering in September 2022, have historically been offset by contract receivable payments from an NIH SBIR contract that has supported our scientific research. This is stated in the financials as research and development-net of contract expense reimbursements.

Fair Value of Financial Instruments

We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. 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 unaudited condensed 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 based on significant unobservable inputs including the average volatility of a population set and 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.

Initial Measurement of Equity-Based Warrants

We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as equity, the derivative instrument is initially recorded at its fair value and recorded to additional paid in capital. The classification of derivative instruments, including whether such instruments should be recorded as equity, is evaluated at the end of each reporting period.

For our derivative financial instruments classified as equity, the Company used a Black Scholes valuation model, to calculate the fair value on issuance date, without revaluation.

The use of Black Scholes valuation model requires the input of highly subjective assumptions, including the expected price volatility, that is based on an analysis of the historical volatility of the common stock of a group of comparable entities. Any change to these inputs could produce significantly higher or lower fair value measurements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company,” we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Securities Exchange Act of 1934, as amended, or the Exchange Act Rule 15d-15(e)) are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of June 30, 2024, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Such evaluation was carried out under the supervision of our Chief Executive Officer with the participation of our President and Chief Operating Officer, and our Chief Financial Officer, and our third party financial service provider. Based on this evaluation, management concluded that our disclosure controls and procedures were, and continue to be, ineffective as of June 30, 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.
	●	Due to our size and stage of development, segregation of all conflicting duties may not always be possible and may not be economically feasible. During the reporting period, we lacked sufficient review procedures and segregation of duties such that a proper review had not been performed by someone other than a preparer, including manual journal entries, and that process documentation is lacking for review and monitoring controls over financial statements close process and financial reporting.
	●	As a result of the Company’s evolution since the date of our initial formation, when we were focused on NIH SBIR research contracts with related costing allocation allowances until when we completed our IPO and continued our development process, management has lacked a formal process to identify and properly classify operating expenses such as R&D.
	●	We identified findings related to overall information technology general controls including issues with access and segregation of duties for systems supporting the Company’s internal control processes and controls.
	●	Our accounting policies and oversight regarding certain technical aspects of financial reporting for stock-based compensation transactions, particularly relating to grant date valuations and expense attribution, was also limited and resulted in the incorrect recording of related compensation expense and related disclosures.

Except as noted below, there has been no change in the Company’s internal control over financial reporting during the three months ended June 30, 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 is committed to taking further action and implementing additional improvements as necessary.

Management’s Remediation Measures

The aforementioned material weaknesses were identified in 2023 and 2024 and the ineffective monitoring of financial reporting weaknesses resulted in the Company needing to restate its 2023 and 2022 financial statements. While the Company has improved its organizational capabilities, the Company’s remediation efforts will continue to take place. Management is committed to maintaining a strong internal control environment. In response to the identified material weaknesses in the overall control environment, management is currently implementing additional measures which include:

●	Hired a new Chief Financial Officer (“CFO”) during the second quarter of 2024 to bolster the Company’s internal technical accounting and financial reporting experience and provide bandwidth for the prior CFO to focus on the Company’s expanding clinical trial.

●	Engaged a third-party consulting firm to assist with the preparation of SEC reporting and other technical accounting matters.

The Company will continue to review and improve its internal controls over financial reporting to address the underlying causes of the material weaknesses and control deficiencies. Such material weaknesses and control deficiencies will not be fully remediated until the Company has concluded that its internal controls are operating effectively for a sufficient period of time.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not presently party to any pending or other threatened legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results, although from time to time, we may become involved in legal proceedings in the ordinary course of business. We maintain insurance policies in amounts and with the coverage and deductibles we believe are adequate, based on the nature and risks of our business, historical experience and industry standards.

ITEM 1A. RISK FACTORS

As a smaller reporting company, we are not required to provide the information required by this item.

ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

Director and Officer Trading Arrangements.

None.

Item 6. Exhibits

The following exhibits are filed or furnished with this report:

Exhibit No.		Description of Exhibit
3.1		Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 (File No. 333-265429) filed on June 3, 2022).
3.2		Certificate of Amendment to Amended and Restated Certificate of Incorporation, effective March 30, 2022 (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (File No. 333-265429) filed on June 3, 2022).
3.3		Certificate of Amendment to Amended and Restated Certificate of Incorporation, effective June 22, 2022 (incorporated by reference to Exhibit 3.5 to the Registration Statement on Form S-1/A (File No. 333-265429) filed on June 23, 2022).
3.4		Second Amended and Restated By-Laws (incorporated by reference to Exhibit 3.1 to the current Report on Form 8-K filed on November 1, 2022).
3.5		Certificate of Amendment to Amended and Restated Certificate of Incorporation, effective August 13, 2024 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K dated filed on August 7, 2024).
4.1		Form of Convertible Note, dated January 11, 2023, issued by Shuttle Pharmaceuticals Holdings, Inc. to Alto Capital Master Fund, SPC – Segregated Master Portfolio B (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed January 12, 2023).
4.2		Form of Warrant, dated January 11, 2023, issued by Shuttle Pharmaceuticals Holdings, Inc. to Alto Capital Master Fund, SPC – Segregated Master Portfolio B (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed January 12, 2023).
10.1		Employment Agreement, dated June 13, 2024, between Shuttle Pharmaceuticals Holdings, Inc. and Timothy J. Lorber (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed June 18, 2024).
10.2		Amendment Agreement, dated August 6, 2024, between Shuttle Pharmaceuticals Holdings, Inc., Shuttle Pharmaceuticals, Inc. and Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 7, 2024).
10.3		Work Order, dated August 8, 2024, between Shuttle Pharmaceuticals, Inc. and Theradex Systems, Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 14, 2024).
10.4		Master Services Agreement, dated November 1, 2018, between Shuttle Pharmaceuticals, Inc. and Theradex Systems, Inc. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on August 14, 2024).
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Schema Document
101.CAL		Inline XBRL Taxonomy Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Definition Linkbase Data
101.LAB		Inline XBRL Taxonomy Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Presentation Linkbase Document
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* Filed herewith.

**Furnished herewith.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SHUTTLE PHARMACEUTICALS HOLDINGS, INC.

September 3, 2024	By:	/s/ Anatoly Dritschilo
		Anatoly Dritschilo, M.D.
		Chief Executive Officer

September 3, 2024	By:	/s/ Timothy J. Lorber,
		Timothy J. Lorber Chief Financial Officer

Exhibit 31.1

CERTIFICATION

I, Anatoly Dritschilo, M.D., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q Pursuant to Rule 15d-2 under the Securities Exchange Act of 1934 for the period ended June 30, 2024 of Shuttle Pharmaceuticals Holdings, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 3, 2024

/s/ Anatoly Dritschilo

Anatoly Dritschilo, M.D.

Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION

I, Timothy J. Lorber, certify that:

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 3, 2024

/s/ Timothy J. Lorber

Timothy J. Lorber

Chief Financial Officer

(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Shuttle Pharmaceuticals Holdings, Inc. (the “Company”) on Form 10-Q pursuant to Rule 15d-2 under the Securities Exchange Act of 1934 for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anatoly Dritschilo, M.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 3, 2024

/s/ Anatoly Dritschilo

Anatoly Dritschilo, M.D.

Chief Executive Officer

(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Shuttle Pharmaceuticals Holdings, Inc. (the “Company”) on Form 10-Q pursuant to Rule 15d-2 under the Securities Exchange Act of 1934 for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Timothy J. Lorber, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 3, 2024

/s/ Timothy J. Lorber

Timothy J. Lorber

Chief Financial Officer

(Principal Financial and Accounting Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Sep. 03, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-41488
Entity Registrant Name	SHUTTLE PHARMACEUTICALS HOLDINGS, INC.
Entity Central Index Key	0001757499
Entity Tax Identification Number	82-5089826
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	401 Professional Drive
Entity Address, Address Line Two	Suite 260
Entity Address, City or Town	Gaithersburg
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20879
City Area Code	(240)
Local Phone Number	403-4212
Title of 12(b) Security	Common Stock
Trading Symbol	SHPH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,226,951

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 695,594	$ 2,576,416
Prepaid expenses	139,518	114,473
Marketable securities	1,642,995	2,887,215
Accrued interest income	7,226	14,901
Total Current Assets	2,485,333	5,593,005
Property and equipment, net	21,953	24,827
Operating lease right-of-use asset	305,712	333,904
Total Assets	2,812,998	5,951,736
Current Liabilities
Accrued interest payable	130,898	110,453
Convertible notes payable, net	826,235	595,999
Derivative liability	504
Operating lease liability	62,092	52,479
Total Current Liabilities	1,384,620	1,042,237
Convertible notes payable non-current, net		135,089
Derivative liability	359,919	414,512
Operating lease liability non-current	267,025	304,127
Total Liabilities	2,011,564	1,895,965
Stockholders’ Equity
Series A Convertible Preferred Stock, $0.00001 par value; $1,000 per share liquidation value; 20,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.00001 par value; 100,000,000 shares authorized; 2,106,233 and 2,008,689 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	21	20
Additional paid in capital	29,996,963	29,489,055
Accumulated deficit	(29,195,550)	(25,433,304)
Total Stockholders’ Equity	801,434	4,055,771
Total Liabilities and Stockholders’ Equity	2,812,998	5,951,736
Nonrelated Party [Member]
Current Liabilities
Accounts payable and accrued expenses	364,891	282,860
Related Party [Member]
Current Liabilities
Accounts payable and accrued expenses		$ 446

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	2,106,233	2,008,689
Common stock, shares outstanding	2,106,233	2,008,689

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Revenue
Operating expenses
Research and development	645,719	839,665	1,231,823	1,761,466
General and administrative	310,038	209,279	634,647	464,633
Legal and professional	526,877	416,688	1,001,011	784,312
Total operating expenses	1,482,634	1,465,632	2,867,481	3,010,411
Loss from operations	(1,482,634)	(1,465,632)	(2,867,481)	(3,010,411)
Other income (expense)
Interest income	14,158	19,267	35,611	35,955
Finance fee				(104,245)
Change in fair value of derivative liabilities	(143,773)	434,275	54,089	1,675,275
Gain on sale of marketable securities	39,683	1,744	43,720	1,744
Change in fair value of marketable securities	(27,964)	(26,534)	(28,670)	11,528
Loss on settlement of convertible debt		(415,553)	(71,315)	(433,807)
Total other expense	(548,581)	(718,740)	(894,765)	(149,057)
Net loss attributable to common stockholders	$ (2,031,215)	$ (2,184,372)	$ (3,762,246)	$ (3,159,468)
Weighted average common shares outstanding - basic	2,104,933	1,780,171	2,090,890	1,742,520
Weighted average common shares outstanding - diluted	2,104,933	1,780,171	2,090,890	1,742,520
Net loss per shares - basic	$ (0.96)	$ (1.23)	$ (1.80)	$ (1.81)
Net loss per shares - diluted	$ (0.96)	$ (1.23)	$ (1.80)	$ (1.81)
Related Party [Member]
Other income (expense)
Interest expense		$ (2,588)		$ (6,825)
Nonrelated Party [Member]
Other income (expense)
Interest expense	$ (430,685)	$ (729,351)	$ (928,200)	$ (1,328,682)

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 17	$ 26,518,433	$ (18,840,581)	$ 7,677,869
Balance, shares at Dec. 31, 2022	1,700,414
Common stock issued for conversion of accrued interest and principal		104,547		104,547
Common stock issued for conversion of accrued interest and principal, shares	6,375
Stock-based compensation		8,333		8,333
Net loss			(975,097)	(975,097)
Warrants issued for financing costs, net of issuance fees of $8,727		90,816		90,816
Balance at Mar. 31, 2023	$ 17	26,722,129	(19,815,678)	6,906,468
Balance, shares at Mar. 31, 2023	1,706,789
Balance at Dec. 31, 2022	$ 17	26,518,433	(18,840,581)	7,677,869
Balance, shares at Dec. 31, 2022	1,700,414
Net loss				(3,159,468)
Balance at Jun. 30, 2023	$ 19	28,935,641	(22,000,050)	6,935,610
Balance, shares at Jun. 30, 2023	1,935,278
Balance at Mar. 31, 2023	$ 17	26,722,129	(19,815,678)	6,906,468
Balance, shares at Mar. 31, 2023	1,706,789
Common stock issued for conversion of accrued interest and principal	$ 2	2,163,990		2,163,992
Common stock issued for conversion of accrued interest and principal, shares	228,489
Stock-based compensation		49,522		49,522
Net loss			(2,184,372)	(2,184,372)
Balance at Jun. 30, 2023	$ 19	28,935,641	(22,000,050)	6,935,610
Balance, shares at Jun. 30, 2023	1,935,278
Balance at Dec. 31, 2023	$ 20	29,489,055	(25,433,304)	4,055,771
Balance, shares at Dec. 31, 2023	2,008,689
Common stock issued for conversion of accrued interest and principal	$ 1	325,297		325,298
Common stock issued for conversion of accrued interest and principal, shares	78,197
Common stock issued for restricted stock units
Common stock issued for restricted stock units, shares	15,625
Stock-based compensation		111,449		111,449
Net loss			(1,731,031)	(1,731,031)
Balance at Mar. 31, 2024	$ 21	29,925,801	(27,164,335)	2,761,487
Balance, shares at Mar. 31, 2024	2,102,511
Balance at Dec. 31, 2023	$ 20	29,489,055	(25,433,304)	4,055,771
Balance, shares at Dec. 31, 2023	2,008,689
Common stock issued for restricted stock units, shares	19,347
Net loss				(3,762,246)
Balance at Jun. 30, 2024	$ 21	29,996,963	(29,195,550)	801,434
Balance, shares at Jun. 30, 2024	2,106,233
Balance at Mar. 31, 2024	$ 21	29,925,801	(27,164,335)	2,761,487
Balance, shares at Mar. 31, 2024	2,102,511
Common stock issued for restricted stock units
Common stock issued for restricted stock units, shares	3,722
Stock-based compensation		71,162		71,162
Net loss			(2,031,215)	(2,031,215)
Balance at Jun. 30, 2024	$ 21	$ 29,996,963	$ (29,195,550)	$ 801,434
Balance, shares at Jun. 30, 2024	2,106,233

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Warranst of issuance fees	$ 8,727	$ 0	$ 8,727

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,762,246)	$ (3,159,468)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,874	2,970
Change in fair value of derivative liabilities	(54,089)	(1,675,275)
Amortization of debt discount and finance fees	832,014	1,116,422
Gain on sale of marketable securities	(43,720)	(1,744)
Change in fair value of marketable securities	28,670	(11,528)
Accrued interest settled with common stock	18,783	240,831
Loss on settlement of convertible debt	71,315	433,807
Stock-based compensation	182,611	57,855
Changes in operating assets and liabilities:
Accrued interest income	7,675	(6,950)
Prepaid expenses	(25,045)	82,199
Accounts payable and accrued expenses	82,031	(28,004)
Accounts payable and accrued expenses - related parties	(446)	(12,500)
Accrued interest payable	20,445	75,511
Accrued interest payable - related parties		(98,135)
Change in operating lease asset and liability	703	(30)
Net cash used in operating activities	(2,638,425)	(2,984,039)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities	(35,982)	(2,970,905)
Proceeds from disposition of marketable securities	1,295,252	80,000
Net cash provided by (used in) investing activities	1,259,270	(2,890,905)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of note payable-related party		(685,473)
Proceeds from convertible notes payable and warrants		3,935,000
Payment for finance costs related to convertible note payable		(345,000)
Payment of convertible note payable	(501,667)
Net cash provided by (used in) financing activities	(501,667)	2,904,527
Net change in cash and cash equivalents	(1,880,822)	(2,970,417)
Cash and cash equivalents, beginning of period	2,576,416	8,417,203
Cash and cash equivalents, end of period	695,594	5,446,786
Cash paid for:
Interest	56,958	102,373
Income taxes
Supplemental non-cash financing activities:
Common stock issued for settlement of debt	325,298	2,268,539
Warrants issued for financing fees, net of issuance fees of $0 and $8,727, respectively		90,816
Initial recognition of right of use asset and liability		$ 365,556

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Cash Flows [Abstract]
Warrants issuance fees	$ 8,727	$ 0	$ 8,727

Organization and Liquidity

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Liquidity

Note 1 – Organization and Liquidity

Organization and Line of Business

Liquidity and Going Concern

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Reverse Stock Split

Basis of Consolidation

Correction of an Immaterial Error in the Prior Period Financial Statements

Schedule of the Error Correction

	June 30, 2023		Correction			Corrected June 30, 2023
Research and development expense	$	1,944,181	$	(182,715	)	$	1,761,466
General and administrative expense		281,918		182,715			464,633
Total	$	2,226,099	$	-		$	2,226,099

Use of Estimates

Cash and Cash Equivalents

Schedule of Cash and Cash Equivalents

	June 30,		December 31,
	2024		2023
Cash	$	645,594	$	1,550,098
Money market funds		50,000		1,026,318
Total cash and cash equivalents	$	695,594	$	2,576,416

Marketable Securities

Fair Value of Financial Instruments

	●	Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

	●	Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

	●	Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires a significant judgment or estimation.

Set out below are the Company’s financial instruments that are required to be remeasured at fair value on a recurring basis and their fair value hierarchy as of June 30, 2024 and December 31, 2023:

June 30, 2024	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	1,642,995	$	-	$	-	$	1,642,995
Total Assets	$	1,642,995	$	-	$	-	$	1,642,995
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	359,919	$	359,919
Derivative Liability - Accelerated feature		-		-		504		504
Total Liabilities	$	-	$	-	$	360,423	$	360,423

December 31, 2023	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	2,887,215	$	-	$	-	$	2,887,215
Total Assets	$	2,887,215	$	-	$	-	$	2,887,215
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	410,660	$	410,660
Derivative Liability - Accelerated feature		-		-		3,852		3,852
Derivative Liability		-		-		3,852		3,852
Total Liabilities	$	-	$	-	$	414,512	$	414,512

Derivative Financial Instruments

Warrants

Research and Development Expenses

Net Loss Per Common Stock

	June 30,		June 30,
	2024		2023
Convertible notes (Note 5)		80,744		155,378
Warrant (Note 6)		184,000		184,000
Restricted stock units (Note 6)		58,839		10,382
		323,583		349,760

Deferred Offering Costs

Recent Accounting Pronouncements

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Note 3 – Leases

The following summarizes the ROU lease expense components and cash flow information for the Company’s operating leases:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Operating lease cost	$	22,947		$	25,193		$	45,894		$	42,737
Variable lease cost		9,937			-			20,377			-
Sublease income		(2,163	)		(2,121	)		(4,326	)		(4,242	)
Total lease cost	$	30,721		$	23,072		$	61,945		$	38,495

Cash paid for operating cash flows from operating leases	$	22,707		$	23,331		$	45,189		$	42,771
Right-of-use assets obtained in exchange for new operating lease liability	$	-		$	-		$	-		$	365,556

Supplemental balance sheet information related to operating leases was as follows:

	2024			2023
	June 30,			December 31,
	2024			2023

Weighted-average remaining lease term (year)		4.18			4.98
Weighted-average discount rate		10.48	%		10.46	%

Future non-cancelable minimum lease payments under the operating lease liability as of June 30, 2024, are as follows:

Years Ended December 31,
2024 (excluding the six months ended June 30, 2024)	$	46,313
2025		94,246
2026		97,074
2027		99,986
2028		68,235
Total future minimum lease payments		405,854
Less: imputed interest		(76,737	)
Present value of payments	$	329,117

Notes Payable-Related Party

6 Months Ended

Jun. 30, 2024

Notes Payable-related Party

Notes Payable-Related Party

Note 4 – Notes Payable-Related Party

Convertible Notes and Notes Payable

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Convertible Notes and Notes Payable

Note 5 – Convertible Notes and Notes Payable

Alto Opportunity Master Fund, SPC

As of June 30, 2024, the outstanding principal for the convertible note was $1,517,989 and the debt discount remaining was $691,754, with a net convertible note carrying value of $826,235.

Stockholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders’ Equity

Note 6 – Stockholders’ Equity

Common Stock

During the three and six months ended June 30, 2024, the Company issued:

	●	0 and 78,197 shares of common stock to settle $0 and $235,200 of principal and $0 and $18,783 of interest on a convertible note and incurred $0 and $71,315 of loss on settlement, respectively.
	●	3,722 and 19,347 shares of common stock issued for vesting of restricted stock units, respectively.

During the three and six months ended June 30, 2023, the Company issued:

●

Warrants

A summary of activity regarding all warrants issued for the six months ended June 30, 2024 were as follows:

Schedule of Warrants Activity

	Number of		Weighted Average		Average
	Warrants Shares		Exercise Price		Life (years)
Outstanding, December 31, 2023		184,000	$	23.20		2.77
Granted		-		-		-
Outstanding, June 30, 2024		184,000	$	23.20		2.29

The intrinsic value of the warrants as of June 30, 2024 is $0. All of the outstanding warrants are exercisable as of June 30, 2024.

Equity Incentive Plan

Restricted Stock Units

A summary of activity regarding the Restricted Stock Units issued follows:

	Number of RSUs			Weighted Average Fair Value Per RSU
Outstanding, December 31, 2023		24,731		$	11.76
Granted		53,455			2.65
Vested		(19,347	)		7.58
Outstanding, June 30, 2024		58,839		$	4.87

Rights Offering and Financing Commitment

Derivative Liabilities

6 Months Ended

Jun. 30, 2024

Derivative Liabilities

Derivative Liabilities

Note 7 – Derivative Liabilities

Fair Value Assumptions Used in Accounting for Derivative Liabilities

ASC 815 requires us to assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.

The key inputs for the Monte Carlo simulation as of June 30, 2024, were as follows:

Net cash settlement and down round key valuation inputs – warrants*
Annualized volatility		89.76% - 99.20	%
Risk-free interest rate		4.61% - 5.48	%
Quoted VWAP	$	3.12
Exercise price	$	18.80
Probability assessment		2.5% - 30	%
Illiquidity discount		-15	%
Time period (years)		0.11 - 2.53

Based on a Monte Carlo simulation analysis of 250,000 iterations

Acceleration option key valuation inputs*
Annualized volatility		64.76% - 74.98	%
Risk-free interest rate		5.23% - 5.48	%
Quoted VWAP	$	3.12
Illiquidity discount		-15	%
Time period (years)		0 - 0.7

Based on a Monte Carlo simulation analysis of 250,000 iterations

The following table summarizes the changes in the derivative liabilities:

Schedule of Derivative Liabilities

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Warrants			Accelerated Feature
Balance - December 31, 2023	$	410,660		$	3,852
Gain on change in fair value		(196,045	)		(1,817	)
Balance - March 31, 2024	$	214,615		$	2,035
(Gain) loss on change in fair value		145,304			(1,531	)
Balance - June 30, 2024	$	359,919		$	504

Related Party transactions

6 Months Ended

Jun. 30, 2024

Related Party transactions

Note 8 – Related Party transactions

Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 9 – Subsequent Events

See Note 2, Summary of Significant Accounting Policies, Reverse Stock Split, above.

Alto Opportunity Master Fund, SPC

Alliance Global Partners

Phase II study of Ropidoxuridine

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Reverse Stock Split

Reverse Stock Split

Basis of Consolidation

Basis of Consolidation

Correction of an Immaterial Error in the Prior Period Financial Statements

Correction of an Immaterial Error in the Prior Period Financial Statements

Schedule of the Error Correction

	June 30, 2023		Correction			Corrected June 30, 2023
Research and development expense	$	1,944,181	$	(182,715	)	$	1,761,466
General and administrative expense		281,918		182,715			464,633
Total	$	2,226,099	$	-		$	2,226,099

Use of Estimates

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents

Schedule of Cash and Cash Equivalents

	June 30,		December 31,
	2024		2023
Cash	$	645,594	$	1,550,098
Money market funds		50,000		1,026,318
Total cash and cash equivalents	$	695,594	$	2,576,416

Marketable Securities

Marketable Securities

Fair Value of Financial Instruments

Fair Value of Financial Instruments

	●	Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

	●	Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

	●	Level 3: Significant unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires a significant judgment or estimation.

Set out below are the Company’s financial instruments that are required to be remeasured at fair value on a recurring basis and their fair value hierarchy as of June 30, 2024 and December 31, 2023:

June 30, 2024	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	1,642,995	$	-	$	-	$	1,642,995
Total Assets	$	1,642,995	$	-	$	-	$	1,642,995
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	359,919	$	359,919
Derivative Liability - Accelerated feature		-		-		504		504
Total Liabilities	$	-	$	-	$	360,423	$	360,423

December 31, 2023	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	2,887,215	$	-	$	-	$	2,887,215
Total Assets	$	2,887,215	$	-	$	-	$	2,887,215
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	410,660	$	410,660
Derivative Liability - Accelerated feature		-		-		3,852		3,852
Derivative Liability		-		-		3,852		3,852
Total Liabilities	$	-	$	-	$	414,512	$	414,512

Derivative Financial Instruments

Derivative Financial Instruments

Warrants

Warrants

Research and Development Expenses

Research and Development Expenses

Net Loss Per Common Stock

Net Loss Per Common Stock

	June 30,		June 30,
	2024		2023
Convertible notes (Note 5)		80,744		155,378
Warrant (Note 6)		184,000		184,000
Restricted stock units (Note 6)		58,839		10,382
		323,583		349,760

Deferred Offering Costs

Deferred Offering Costs

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of the Error Correction

	June 30, 2023		Correction			Corrected June 30, 2023
Research and development expense	$	1,944,181	$	(182,715	)	$	1,761,466
General and administrative expense		281,918		182,715			464,633
Total	$	2,226,099	$	-		$	2,226,099

Schedule of Cash and Cash Equivalents

	June 30,		December 31,
	2024		2023
Cash	$	645,594	$	1,550,098
Money market funds		50,000		1,026,318
Total cash and cash equivalents	$	695,594	$	2,576,416

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Set out below are the Company’s financial instruments that are required to be remeasured at fair value on a recurring basis and their fair value hierarchy as of June 30, 2024 and December 31, 2023:

June 30, 2024	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	1,642,995	$	-	$	-	$	1,642,995
Total Assets	$	1,642,995	$	-	$	-	$	1,642,995
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	359,919	$	359,919
Derivative Liability - Accelerated feature		-		-		504		504
Total Liabilities	$	-	$	-	$	360,423	$	360,423

December 31, 2023	Level 1		Level 2		Level 3		Carrying Value
Assets
Marketable Securities:
United States Treasury Bonds	$	2,887,215	$	-	$	-	$	2,887,215
Total Assets	$	2,887,215	$	-	$	-	$	2,887,215
Liabilities
Derivative Liability - Warrants	$	-	$	-	$	410,660	$	410,660
Derivative Liability - Accelerated feature		-		-		3,852		3,852
Derivative Liability		-		-		3,852		3,852
Total Liabilities	$	-	$	-	$	414,512	$	414,512

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

	June 30,		June 30,
	2024		2023
Convertible notes (Note 5)		80,744		155,378
Warrant (Note 6)		184,000		184,000
Restricted stock units (Note 6)		58,839		10,382
		323,583		349,760

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Right-of Use Asset and Lease Information about Operating Lease

The following summarizes the ROU lease expense components and cash flow information for the Company’s operating leases:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023

Operating lease cost	$	22,947		$	25,193		$	45,894		$	42,737
Variable lease cost		9,937			-			20,377			-
Sublease income		(2,163	)		(2,121	)		(4,326	)		(4,242	)
Total lease cost	$	30,721		$	23,072		$	61,945		$	38,495

Cash paid for operating cash flows from operating leases	$	22,707		$	23,331		$	45,189		$	42,771
Right-of-use assets obtained in exchange for new operating lease liability	$	-		$	-		$	-		$	365,556

Schedule of Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases was as follows:

	2024			2023
	June 30,			December 31,
	2024			2023

Weighted-average remaining lease term (year)		4.18			4.98
Weighted-average discount rate		10.48	%		10.46	%

Schedule of Future Non-cancelable Minimum Lease Payments Under Operating Lease Liability

Future non-cancelable minimum lease payments under the operating lease liability as of June 30, 2024, are as follows:

Years Ended December 31,
2024 (excluding the six months ended June 30, 2024)	$	46,313
2025		94,246
2026		97,074
2027		99,986
2028		68,235
Total future minimum lease payments		405,854
Less: imputed interest		(76,737	)
Present value of payments	$	329,117

Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Warrants Activity

A summary of activity regarding all warrants issued for the six months ended June 30, 2024 were as follows:

Schedule of Warrants Activity

	Number of		Weighted Average		Average
	Warrants Shares		Exercise Price		Life (years)
Outstanding, December 31, 2023		184,000	$	23.20		2.77
Granted		-		-		-
Outstanding, June 30, 2024		184,000	$	23.20		2.29

Schedule of Restricted Stock Units (RSUs)

A summary of activity regarding the Restricted Stock Units issued follows:

	Number of RSUs			Weighted Average Fair Value Per RSU
Outstanding, December 31, 2023		24,731		$	11.76
Granted		53,455			2.65
Vested		(19,347	)		7.58
Outstanding, June 30, 2024		58,839		$	4.87

Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Liabilities

Schedule of Monte Carlo Simulation Assumption

The key inputs for the Monte Carlo simulation as of June 30, 2024, were as follows:

Net cash settlement and down round key valuation inputs – warrants*
Annualized volatility		89.76% - 99.20	%
Risk-free interest rate		4.61% - 5.48	%
Quoted VWAP	$	3.12
Exercise price	$	18.80
Probability assessment		2.5% - 30	%
Illiquidity discount		-15	%
Time period (years)		0.11 - 2.53

Based on a Monte Carlo simulation analysis of 250,000 iterations

Acceleration option key valuation inputs*
Annualized volatility		64.76% - 74.98	%
Risk-free interest rate		5.23% - 5.48	%
Quoted VWAP	$	3.12
Illiquidity discount		-15	%
Time period (years)		0 - 0.7

Based on a Monte Carlo simulation analysis of 250,000 iterations

Schedule of Derivative Liabilities

The following table summarizes the changes in the derivative liabilities:

Schedule of Derivative Liabilities

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Warrants			Accelerated Feature
Balance - December 31, 2023	$	410,660		$	3,852
Gain on change in fair value		(196,045	)		(1,817	)
Balance - March 31, 2024	$	214,615		$	2,035
(Gain) loss on change in fair value		145,304			(1,531	)
Balance - June 30, 2024	$	359,919		$	504

Organization and Liquidity (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended				6 Months Ended
	Aug. 12, 2016	Jan. 31, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Aug. 06, 2024	Dec. 31, 2023	Jan. 11, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net loss			$ 2,031,215	$ 1,731,031	$ 2,184,372	$ 975,097	$ 3,762,246	$ 3,159,468
Revenues
Working capital							1,100,000
Convertible note			826,235				$ 826,235		$ 600,000	$ 595,999
Exercisable price per share		$ 18.80
Initiated a capital offering		$ 4,500,000
Securities Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Exercisable price per share											$ 18.80
Institutional Investor [Member] \| Securities Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt instrument, face amount		4,300,000
Net proceeds from warrants		$ 3,600,000
Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of shares issued	5,625,000
Sale of stock membership percentage	100.00%
Net loss
Common Stock [Member] \| Institutional Investor [Member] \| Securities Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Warrant term		4 years
Warrant to purchase common stock		127,260
Exercisable price per share		$ 18.80

Schedule of the Error Correction (Details) - USD ($)	3 Months Ended		6 Months Ended
Schedule of the Error Correction (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Research and development expense	$ 645,719	$ 839,665	$ 1,231,823	$ 1,761,466
General and administrative expense	$ 310,038	209,279	$ 634,647	464,633
Total				2,226,099
Previously Reported [Member]
Research and development expense				1,944,181
General and administrative expense				281,918
Total				2,226,099
Revision of Prior Period, Error Correction, Adjustment [Member]
Research and development expense				(182,715)
General and administrative expense		$ 93,708		182,715
Total

Schedule of Cash and Cash Equivalents (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Cash	$ 645,594	$ 1,550,098
Money market funds	50,000	1,026,318
Total cash and cash equivalents	$ 695,594	$ 2,576,416

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Assets
Total Assets	$ 1,642,995	$ 2,887,215
Liabilities
Derivative Liability	504
Total Liabilities	360,423	414,512
Warrant [Member]
Liabilities
Derivative Liability	359,919	410,660
Accelerated Feature [Member]
Liabilities
Derivative Liability	504	3,852
US Treasury Securities [Member]
Assets
United States Treasury Bonds	1,642,995	2,887,215
Fair Value, Inputs, Level 1 [Member]
Assets
Total Assets	1,642,995	2,887,215
Liabilities
Total Liabilities
Fair Value, Inputs, Level 1 [Member] \| Warrant [Member]
Liabilities
Derivative Liability
Fair Value, Inputs, Level 1 [Member] \| Accelerated Feature [Member]
Liabilities
Derivative Liability
Fair Value, Inputs, Level 1 [Member] \| US Treasury Securities [Member]
Assets
United States Treasury Bonds	1,642,995	2,887,215
Fair Value, Inputs, Level 2 [Member]
Assets
Total Assets
Liabilities
Total Liabilities
Fair Value, Inputs, Level 2 [Member] \| Warrant [Member]
Liabilities
Derivative Liability
Fair Value, Inputs, Level 2 [Member] \| Accelerated Feature [Member]
Liabilities
Derivative Liability
Fair Value, Inputs, Level 2 [Member] \| US Treasury Securities [Member]
Assets
United States Treasury Bonds
Fair Value, Inputs, Level 3 [Member]
Assets
Total Assets
Liabilities
Total Liabilities	360,423	414,512
Fair Value, Inputs, Level 3 [Member] \| Warrant [Member]
Liabilities
Derivative Liability	359,919	410,660
Fair Value, Inputs, Level 3 [Member] \| Accelerated Feature [Member]
Liabilities
Derivative Liability	504	3,852
Fair Value, Inputs, Level 3 [Member] \| US Treasury Securities [Member]
Assets
United States Treasury Bonds

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	323,583	349,760
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	80,744	155,378
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	184,000	184,000
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	58,839	10,382

Summary of Significant Accounting Policies (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	Aug. 13, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Common stock, par value	$ 0.00001	$ 0.00001		$ 0.00001		$ 0.00001
Preferred stock, par value	0.00001	$ 0.00001		$ 0.00001		$ 0.00001
Common stock shares issued		2,106,233		2,106,233		2,008,689
Common stock shares outstanding		2,106,233		2,106,233		2,008,689
General and Administrative Expense		$ 310,038	$ 209,279	$ 634,647	$ 464,633
Cash FDIC insured amount		250,000		250,000
Cash, uninsured amount		400,000		400,000
Marketable securities, outstanding balance		1,642,995		1,642,995		$ 2,887,215
Interest income		14,158	19,267	35,611	35,955
Gain on sale of marketable securities		39,683	1,744	43,720	1,744
Unrealized loss		27,964	26,534	28,670	(11,528)
Interest income				35,611	35,955
Marketable securities realized gain loss				43,720	1,744
Marketable securities unrealized gain loss				28,670	11,528
Share based compensation				182,611	57,855
Research and Development Expense [Member]
Share based compensation		$ 100,000	300,000	$ 200,000	600,000
Revision of Prior Period, Error Correction, Adjustment [Member]
General and Administrative Expense			$ 93,708		$ 182,715
Subsequent Event [Member]
Minimum bid price	$ 1.00
Reverse stock split	1-for-8
Common stock shares issued	2,111,235
Common stock shares outstanding	2,111,235

Schedule of Right-of Use Asset and Lease Information about Operating Lease (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease cost	$ 22,947	$ 25,193	$ 45,894	$ 42,737
Variable lease cost	9,937		20,377
Sublease income	(2,163)	(2,121)	(4,326)	(4,242)
Total lease cost	30,721	23,072	61,945	38,495
Cash paid for operating cash flows from operating leases	22,707	23,331	45,189	42,771
Right-of-use assets obtained in exchange for new operating lease liability				$ 365,556

Schedule of Balance Sheet Information Related to Operating Leases (Details)	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term (year)	4 years 2 months 4 days	4 years 11 months 23 days
Weighted-average discount rate - operating leases	10.48%	10.46%

Schedule of Future Non-cancelable Minimum Lease Payments Under Operating Lease Liability (Details)	Jun. 30, 2024 USD ($)
Leases [Abstract]
2024 (excluding the six months ended June 30, 2024)	$ 46,313
2025	94,246
2026	97,074
2027	99,986
2028	68,235
Total future minimum lease payments	405,854
Less: imputed interest	(76,737)
Present value of payments	$ 329,117

Leases (Details Narrative) - USD ($)		6 Months Ended
Leases (Details Narrative) - USD ($)	Feb. 16, 2023	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Lease payment		$ 6,480
Expiry date		Oct. 31, 2023
Lease Agreement [Member]
Lessee, Lease, Description [Line Items]
Payments for rent	$ 7,206
Lease term	64 months
Rent variable rate	3.00%
Lease commencement	commenced June 1, 2023
Percentage of rent abatement	50.00%
Estimated monthly common area maintenance cost	$ 3,300
Lease Agreement [Member] \| Letter of Credit [Member]
Lessee, Lease, Description [Line Items]
Expiry date	Mar. 01, 2025
Payments for rent	$ 3,891
Percentage of rent abatement	50.00%
Security deposit	$ 43,234
Common area maintenance cost	$ 3,315

Notes Payable-Related Party (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Interest Paid, Excluding Capitalized Interest, Operating Activities		$ 56,958	$ 102,373
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest Expense, Operating and Nonoperating	$ 2,588		6,825
Officers Spouse [Member]
Defined Benefit Plan Disclosure [Line Items]
Proceeds from (Repayments of) Related Party Debt	139,229		685,473
Interest Paid, Excluding Capitalized Interest, Operating Activities	$ 25,917		$ 102,373

Convertible Notes and Notes Payable (Details Narrative)		3 Months Ended		6 Months Ended
Convertible Notes and Notes Payable (Details Narrative)	Jan. 11, 2023 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Aug. 06, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jan. 31, 2023 USD ($) $ / shares shares
Short-Term Debt [Line Items]
Convertible debt		$ 1,517,989		$ 1,517,989
Warrants to purchase common stock \| shares								127,260
Warrants exerciable shares \| $ / shares								$ 18.80
Proceeds from convertible note payable					$ 3,935,000
Convertible notes payable		10,000,000.0		10,000,000.0
Warrant derivative liability		359,919		359,919			$ 414,512	$ 1,189,000
Legal fees		526,877	$ 416,688	1,001,011	784,312
Interest expense debt		386,505	549,125	832,014	1,012,177
Debt, principal				558,628
Settled for cash				501,667
Interest paid				56,958	102,373
Amortization of Debt Issuance Costs				691,754
Convertible note payable		826,235		826,235		$ 600,000	$ 595,999
Common Stock [Member]
Short-Term Debt [Line Items]
Debt, principal		$ 0	$ 1,527,750	$ 235,200	$ 1,593,900
Stock issuance \| shares		0	228,489	78,197	234,864
Measurement Input, Expected Term [Member]
Short-Term Debt [Line Items]
Expected years		5 years		5 years
Measurement Input, Price Volatility [Member]
Short-Term Debt [Line Items]
Warrants and rights outstanding measurement input		110		110
Measurement Input, Risk Free Interest Rate [Member]
Short-Term Debt [Line Items]
Warrants and rights outstanding measurement input		3.53		3.53
Boustead Securities LLC [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock \| shares		8,909		8,909
Warrants exerciable shares \| $ / shares		$ 18.80		$ 18.80
Payment for placement agent				$ 345,000
Fair value of warrants				99,543
Allocation of financing costs				232,027
Warrant derivative liability		$ 104,245		104,245
Equity warrant as reduction in additional paid in capital		8,727		8,727
Interest expense debt		430,685	$ 729,351	928,200	$ 1,328,682
Debt, principal		0	1,527,750	235,200	1,593,900
Accrued interest settled with common stock		0	$ 220,689	18,783	$ 240,831
Boustead Securities LLC [Member] \| Convertible Note [Member]
Short-Term Debt [Line Items]
Fair value of warrants				1,288,543
Debt discount		300,000		300,000
Legal fees				65,000
Interest fee				215,000
Debt principal amount		$ 1,442,000		1,442,000
Interest expense debt				$ 3,310,543
Securities Purchase Agreement [Member]
Short-Term Debt [Line Items]
Convertible debt	$ 4,300,000
Warrants to purchase common stock \| shares	127,260
Warrants exerciable shares \| $ / shares	$ 18.80
Proceeds from convertible note payable	$ 3,935,000
Effective interest rate	218.00%
Debt description	the Alto Convertible Note is convertible into shares of common stock at a price per share equal to the lower of (i) $18.80, (ii) 90% of the three lowest daily VWAPs of the 15 trading days prior to the payment date, or (iii) 90% of the VWAP of the trading day prior to payment date. The noteholder may convert at any time at a fixed price of $18.80 per share.
Derivative liability	$ 1,442,000
Debt interest rate	5.00%

Schedule of Warrants Activity (Details) - Warrant [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of Warrants Outstanding, Beginning Balance	184,000
Weighted Average Exercise Price, Outstanding Beginning Balance	$ 23.20
Weighted Average Life (Years)	2 years 3 months 14 days	2 years 9 months 7 days
Number of Warrants, Granted
Weighted Average Exercise Price, Granted
Number of Warrants Outstanding, Ending Balance	184,000	184,000
Weighted Average Exercise Price, Outstanding Ending Balance	$ 23.20	$ 23.20

Schedule of Restricted Stock Units (RSUs) (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of RSUs, Outstanding, Beginning Balance \| shares	24,731
Weighted Average Grant Date Fair Value Per RSU, Beginning Balance \| $ / shares	$ 11.76
Number of Stock Option Outstanding, Granted \| shares	53,455
Weighted Average Exercise Price, Granted \| $ / shares	$ 2.65
Number of RSUs, Vested \| shares	(19,347)
Weighted Average Grant Date Fair Value Per RSU, Vested \| $ / shares	$ 7.58
Number of RSUs, Outstanding, Ending Balance \| shares	58,839
Weighted Average Grant Date Fair Value Per RSU, Ending Balance \| $ / shares	$ 4.87

Stockholders’ Equity (Details Narrative) - USD ($)		3 Months Ended			6 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Feb. 07, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jan. 31, 2023	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Debt, principal					$ 558,628
Loss on settlement of convertible debt				$ 415,553	71,315	$ 433,807
Number of warrants to purchase							127,260
Exercise price per share							$ 18.80
Aggregate intrinsic value of warrants		0			0
Restricted stock award granted value
Share based compensation					182,611	57,855
Sale of stock consideration received per transaction	$ 2,250,000
Share based compensation arrangement by share based payment award description	(i) one share of the Company’s common stock, (ii) a warrant to purchase one share of the Company’s common stock exercisable at a purchase price of $18.80 per share, and (iii) a percentage of equity interest in Diagnostics such that, assuming the sale of all $2,250,000 of Units, SRO LLC will own a 22% interest in Diagnostics.
Proceeds from issuance of common stock	$ 4,500,000
Direct cost					142,000
Purchase Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Escrow deposit	2,250,000
Right offering	4,500,000
Escrow deposit	$ 2,250,000
Initial public offering description	Unless the parties waive the conditions to closing, in the event the full $4,500,000 is not raised, whether through SRO LLC or through the Company’s existing stockholders, the Company will not close on the offering and any funds raised and held in escrow will be returned to investors
Commitment fee	$ 112,500
Related expense	$ 40,000
Research and Development Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share based compensation		100,000		300,000	200,000	600,000
Compensation under research and development		13,033		$ 41,190	46,986	41,190
Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share based compensation					182,611	$ 57,855
Unrecognized compensation cost		$ 190,779			$ 190,779
Weighted average term					1 year 11 months 19 days
Restricted Stock Units (RSUs) [Member] \| Directors and Officers [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Restricted stock award granted shares		28,455		4,291	53,455	7,416
Restricted stock award granted value		$ 100,000		$ 47,400	$ 141,840	$ 95,400
2018 Equity Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock reserved for future issuance								3,000,000
Share granted under equity incentive plan		138,234			138,234
Number of shares vested under plan					79,395
Alto Convertible Note [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of warrants to purchase							8,909
Exercise price per share							$ 18.80
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock issued for conversion of convertible debt, shares		0		228,489	78,197	234,864
Debt, principal		$ 0		$ 1,527,750	$ 235,200	$ 1,593,900
Accrued interest settled with common stock		0		220,689	18,783	240,831
Loss on settlement of convertible debt		$ 0		$ 415,553	$ 71,315	$ 433,807
Restricted stock award granted shares		3,722	15,625		19,347
Restricted stock award granted value

Schedule of Monte Carlo Simulation Assumption (Details)

6 Months Ended

Jun. 30, 2024

$ / shares

Jan. 11, 2023

$ / shares

Measurement Input, Price Volatility [Member] | Minimum [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

64.76

Measurement Input, Price Volatility [Member] | Minimum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

89.76

Measurement Input, Price Volatility [Member] | Maximum [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

74.98

Measurement Input, Price Volatility [Member] | Maximum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

99.20

Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

5.23

Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

4.61

Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

5.48

Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

5.48

Measurement Input Volume Weighted Average Price [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

3.12

Measurement Input Volume Weighted Average Price [Member] | Warrant [Member]

Debt Instrument, Measurement Input

3.12

^[1]

12.64

Measurement Input, Exercise Price [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

18.80

Measurement Input, Default Rate [Member] | Minimum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

2.5

Measurement Input, Default Rate [Member] | Maximum [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

Illiquidity Discount [Member] | Equity Option [Member]

Debt Instrument, Measurement Input

^[1]

Illiquidity Discount [Member] | Warrant [Member]

Debt Instrument, Measurement Input

^[1]

Measurement Input, Expected Term [Member] | Minimum [Member] | Equity Option [Member]

Time period (years)

^[1]

0 years

Measurement Input, Expected Term [Member] | Minimum [Member] | Warrant [Member]

Time period (years)

^[1]

1 month 9 days

Measurement Input, Expected Term [Member] | Maximum [Member] | Equity Option [Member]

Time period (years)

^[1]

8 months 12 days

Measurement Input, Expected Term [Member] | Maximum [Member] | Warrant [Member]

Time period (years)

^[1]

2 years 6 months 10 days

[1]	Based on a Monte Carlo simulation analysis of 250,000 iterations

Schedule of Derivative Liabilities (Details) - USD ($)	3 Months Ended
Schedule of Derivative Liabilities (Details) - USD ($)	Jun. 30, 2024	Mar. 31, 2024
Accelerated Feature [Member]
Platform Operator, Crypto Asset [Line Items]
Beginning balance	$ 2,035	$ 3,852
Gain on change in fair value of the derivative	(1,531)	(1,817)
Ending balance	504	2,035
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Beginning balance	214,615	410,660
Gain on change in fair value of the derivative	145,304	(196,045)
Ending balance	$ 359,919	$ 214,615

Derivative Liabilities (Details Narrative)

Jun. 30, 2024

USD ($)

$ / shares

Dec. 31, 2023

USD ($)

Jan. 31, 2023

USD ($)

$ / shares

Jan. 11, 2023

USD ($)

$ / shares

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Number of shares warrant to purchase | shares

127,260

Exercise price per share | $ / shares

$ 18.80

Derivative liability non-current | $

$ 359,919

$ 414,512

$ 1,189,000

Derivative fair value | $

$ 360,423

$ 2,631,000

Measurement Input Volume Weighted Average Price [Member] | Warrant [Member]

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Share price | $ / shares

3.12

^[1]

12.64

Derivative discount percentage

14.00%

Securities Purchase Agreement [Member]

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Number of shares warrant to purchase | shares

127,260

Exercise price per share | $ / shares

$ 18.80

Derivative liability | $

$ 1,442,000

[1]	Based on a Monte Carlo simulation analysis of 250,000 iterations

Related Party transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Related Party Transactions [Abstract]
Research, development expense	$ 0	$ 608,000

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)	Aug. 08, 2024	Aug. 06, 2024	Jul. 30, 2024
Subsequent Event [Line Items]
Exchange fee	$ 2,300,000
Alliance Global Partners [Member] \| Offering [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Offering price			$ 10,000,000.0
Alto Convertible Note [Member]
Subsequent Event [Line Items]
Payment to investors		$ 600,000