Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 171

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 171
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 Each director is entitled to receive cash compensation of
$11,250 quarterly. In addition, the two non-audit committee chairs (Toovey, Field) will receive $1,250 per quarter and the audit committee
chair (Allen) will receive an additional $2,000 per quarter. In addition, each director is entitled to receive annual equity-based compensation
awards, with the amounts and terms to be determined by the Compensation Committee.

In November 2024, the Company paid each non-executive
director an additional $20,000 of cash compensation in lieu of granting equity-based compensation awards for the year ended December
31, 2024.

Contingencies

The Company’s operations are subject to
a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions
on its operations, or losses of permits that could result in the Company ceasing operations.

Contingent Compensation 

Following the Company’s IPO and the conversion
of the outstanding debt pursuant to the Knight Debt Conversion Agreement as discussed in Note 7, the Company is obligated to pay Knight
a contingent milestone payment of $10 million if the Company sells Arakoda™ or if a Change of Control occurs. The Company accounts
for the contingent milestone payment as a derivative liability (See Note 8).

On July 15, 2015, the Company entered into 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