Shuttle Pharmaceuticals Reports $9.1 Million Net Loss and Faces Nasdaq Compliance Challenges

Shuttle Pharmaceuticals Holdings, Inc. reported a net loss of approximately $9.1 million for the fiscal year ending December 31, 2024, compared to a net loss of $6.6 million in the previous year, marking a 39% increase in losses. The company did not generate any revenue during this period, maintaining a trend of no sales since its inception. Total operating expenses rose to $7.7 million, a 31% increase from $5.9 million in 2023, driven primarily by a significant rise in legal and professional fees, which surged by 102% to $2.7 million, largely due to costs associated with regulatory compliance and financial restatements.

In terms of operational developments, Shuttle Pharmaceuticals is advancing its lead product candidate, Ropidoxuridine, which is currently in Phase II clinical trials for treating glioblastoma. The company received FDA approval to commence these trials and has begun enrolling patients. The company’s research and development expenses totaled $3.6 million, a slight increase from $3.5 million in the prior year, reflecting ongoing efforts to support clinical testing and regulatory activities. The company’s workforce remains small, with only nine full-time employees as of the end of 2024.

Shuttle Pharmaceuticals has faced challenges in maintaining compliance with Nasdaq listing requirements. As of December 31, 2024, the company received notifications from Nasdaq regarding non-compliance with both the minimum stockholders' equity requirement of $2.5 million and the minimum bid price requirement of $1.00 per share. The company has until March 10, 2025, to regain compliance with these requirements, and it is actively pursuing additional funding to support its operations and clinical trials.

The company’s liquidity position has deteriorated, with current assets decreasing by 60% to $2.2 million from $5.6 million in 2023. Current liabilities increased by 47% to $1.5 million, resulting in a working capital of approximately $0.7 million. The company’s cash flow from operating activities was negative, totaling $7.3 million for the year, reflecting ongoing cash burn from research and development activities. Despite recent capital raises, including a $4.0 million equity offering in October 2024, management has expressed concerns about the sufficiency of existing cash resources to fund operations over the next twelve months.

Looking ahead, Shuttle Pharmaceuticals aims to continue its clinical development of Ropidoxuridine and other product candidates while seeking additional financing options to ensure operational continuity. The company is also focused on addressing its internal control weaknesses, which were identified during the financial restatement process, and is committed to enhancing its financial reporting and compliance capabilities.