Shuttle Pharmaceuticals Reports Significant Financial Challenges, Net Loss Increases 111% in Q3 2024

Shuttle Pharmaceuticals Holdings, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a drastic decline in total current assets, which fell to $361,351 from $5,593,005 as of December 31, 2023. Total assets also decreased to $673,568 from $5,951,736 during the same period. Current liabilities increased to $1,659,233, up from $1,042,237, leading to a working capital deficiency of approximately $1.3 million.

For the three months ended September 30, 2024, Shuttle Pharmaceuticals reported total operating expenses of $3,051,561, a 91% increase from $1,599,146 in the same period of 2023. The loss from operations for this quarter was $(3,051,561), compared to a loss of $(1,599,146) in Q3 2023. The net loss attributable to common stockholders for the quarter was $(3,784,082), a 111% increase from $(1,792,754) year-over-year. For the nine months ended September 30, 2024, the net loss was $(7,546,328), compared to $(4,952,223) for the same period in 2023.

The company’s financial performance was impacted by increased legal and professional expenses, which surged by 358% to $1,322,002 in Q3 2024. Research and development expenses also rose by 34% to $1,400,564. The company reported no revenues during this period, and its cash and cash equivalents dwindled to $156,656 from $2,576,416 at the beginning of the nine-month period.

Strategically, Shuttle Pharmaceuticals has been active in raising capital to support its operations. In September 2024, the CEO provided $250,000 through a promissory note. In October 2024, the company raised $790,000 through senior secured convertible bridge notes and $3.9 million from an equity offering. However, these funds are deemed insufficient to cover operations and clinical trials for the next twelve months.

The company is focused on advancing its key product, Ropidoxuridine, for cancer treatment, with the FDA recommending an expansion of its Phase II clinical trial. As of September 30, 2024, the company had enrolled the first three patients in this trial. Despite these developments, there is substantial doubt regarding the company's ability to continue as a going concern, as it must secure additional financing to sustain its operations.

Overall, Shuttle Pharmaceuticals Holdings, Inc. is navigating a challenging financial landscape, marked by increased losses, reduced asset levels, and a pressing need for further capital to support its clinical initiatives.