Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 844

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 844
---
 the
Exclusive License Agreement with the U.S. Army Medical Materiel Development Activity (the “U.S. Army”), which was subsequently
amended (the “U.S. Army Agreement”), in which the Company obtained a license to develop and commercialize the licensed technology
with respect to all therapeutic applications and uses excluding radical cure of symptomatic vivax malaria. The term of the U.S. Army
Agreement will continue until the expiration of the last to expire of the patent application or valid claim of the licensed technology,
or 20 years from the start date of the U.S. Army Agreement, unless terminated earlier by the parties. The Company must make a minimum
annual royalty payment of 3% of Net Sales (as defined in the U.S. Army Agreement) for Net Sales less than $35 million, and 5% of Net
Sales greater than $35 million, with US government sales excluded from the definition of Net Sales. In addition, the Company must pay
fees upon the achievement of certain milestones, including a sales-based milestone fee of $75,000 once cumulative Net Sales from all
sources exceeds $6 million. The Company accrues the minimum annual royalty when the related sales occur. The Company achieved the sales-based
milestone target during the year ended December 31, 2023, which was paid in full on June 13, 2024. As of December 31, 2023, the Company
had accrued a liability of $75,000 for the related payment, which is reflected in Accounts Payable and Accrued Expenses on the accompanying
Consolidated Balance Sheets. The achievement of other milestones under the U.S. Army Agreement are not considered probable and thus no
accruals for the related milestone payments have been made.

F-35

On December 20, 2024, the Company entered into
a Patent License Agreement with Tufts Medical Center (“Tufts MC”), in which the Company obtained a license to research and
commercialize the licensed technology with respect the use of tafenoquine for treatment and/or prevention of babesiosis (the “Tufts
MC Agreement”). The term of the Tufts MC Agreement will continue until the expiration or final abandonment of the last patent application
or issued patent for the use of tafenoquine for treatment and/or prevention of babesiosis, unless terminated earlier by the parties.
On the earlier of (x) the date of patent issuance or (y) the date of regulatory approval for the use