Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 51

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 distributor Biocelect in
Australia for the three months ended March 31, 2025 were $12,066 ($1,004 for the three months ended March 31, 2024). A historical portion
of sales to Biocelect remain subject to a profit share distribution once the original transfer price has been recouped. Biocelect, which
acts as a distributor in the Australian and New Zealand market, reported (42%) year-over-year decline, the equivalent of 386 boxes sold
for the three months ended March 31, 2025, compared to 665 boxes for the three months ended March 31, 2024. As of March 31, 2025, Biocelect’s
unsold inventory that remains subject to profit share was the equivalent of 109.5 boxes. Additionally, under a new agreement executed
during the quarter, Biocelect began to purchase from the latest manufactured lot of Kodatef at $45 AUD per box which are not subject to
historical profit share. For the quarter ended March 31, 2025, 200 boxes of Kodatef were sold to Biocelect. As of March 31, 2025, $5,826
of profit share was due to us ($1,004 as of March 31, 2024).

Arakoda sales volume in Europe continues to grow.
We first shipped Arakoda to our distributor Scandinavian Biopharma (“SB”) in September 2022. For the three months ended March
31, 2025, SB reported 73 boxes sold (27 boxes sold for the three months ended March 31, 2024). According to our distributor, this is due
to greater interest in treating babesiosis.

29

Cost of Revenues, Gross Profit, and Gross Margin

Cost of revenues was $73,272 for the three months ended March 31, 2025,
as compared to $65,437 for the three months ended March 31, 2024. The increase in cost of goods sold is primarily driven by the inflationary
increase in fixed COGS charges for serialization and inventory material charges. Despite the increase, the Gross Margin % increased from
38.08% for the three months ended March 31, 2024 to 55.20% for the three months ended March 31, 2025. This is primarily attributable to
the growth in revenues. As the sales volume has increased, the gross margin has