Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1323

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 5
Chunk 1323
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   Issuance date of promissory notes   May 2022    May 2022    May 2023   Maturity date of promissory notes   1    1    2   Interest rate   10%   6%   10%  Default interest rate   15%   15%   15%  Collateral   Unsecured    Unsecured    Unsecured   Conversion rate   3    3    3  

    1 -
    earlier
                                of 1 year from date of issuance or closing of IPO, later extended to July 2023

    2 -
    earlier
                                of 1 year from date of issuance or closing of IPO

    3 -
    see discussion above for Bridge
    Notes and Related Party Notes, respectively

For the years ended December 31, 2024 and 2023,
the Company recorded amortization of debt discounts, including issuance costs, of $0 and $670,550, respectively.

F-25

Knight Debt Conversion

On January 9, 2023, and in two subsequent amendments,
the Company and Knight Therapeutics agreed to extinguish Knight’s debt in the event of an IPO. Key points of this agreement are
as follows:

●The Parties agreed to fix Knight’s cumulative debt to the value as it stood on March 31, 2022, which consisted of $10,770,037 in principal and $8,096,486 in accumulated interest should the Company execute an IPO that results in gross proceeds of at least $7,000,000 prior to December 31, 2023. If a Qualifying IPO did not occur by January 1, 2024, then all terms of the original debt would have resumed including any interest earned after March 31, 2022.

●The Parties agreed to (i) convert the fixed principal amount into that number of shares of common stock equal to dividing the principal amount by an amount equal to the offering price of the common stock in the IPO discounted by 15%, rounding up for fractional shares, in a number of common shares up to 19.9% of the Company’s outstanding common stock after giving effect of the IPO; (ii) the Company will make a milestone payment of $10 million to Knight if, after the date of a Qualifying