Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 128

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 128
---
 a corporation
for U.S. Federal and state income tax purposes. The tax years that remain subject to examination by major tax jurisdictions include the
years ended December 31, 2021, 2022, 2023, and 2024. 60P Australia Pty Ltd. is subject to taxation by the Australian Taxation Office.

F-13

Management assesses, on a jurisdictional basis,
the available means of recovering deferred tax assets, including the ability to carry-back net operating losses, the existence of reversing
temporary differences, the availability of tax planning strategies and available sources of future taxable income. On the basis of this
evaluation, the Company has determined that it is not more likely than not that the Company will recognize the benefits of its net deferred
tax assets, and, as a result, a full valuation allowance has been recorded against its net deferred tax assets as of December 31, 2024
and December 31, 2023.

During the ordinary course of business, there
are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related
uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when
the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable.
The Company adjusts these reserves in light of changes in facts and circumstances, such as the outcome of tax examinations. As of December
31, 2024 and December 31, 2023, no reserves for uncertain tax positions have been established.

The Company recognizes interest and penalties
accrued related to unrecognized tax benefits as income tax expense. During the years ended December 31, 2024 and 2023, the Company did
not recognize interest and penalties related to unrecognized tax benefits.

Concentrations

Financial instruments that potentially subject
the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable,
inventory purchases, and borrowings.

Significant customers represent any customer
whose business makes up 10% of receivables or revenues. At December 31, 2024, significant customers represented 95% of receivables (consisting
of three customers and one significant customer) and 95% of total net product revenues (consisting of three customers and one significant
customer). At December 31, 2023, significant customers represented 92% of receivables