Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 163

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 163
---
 on the debt arrangements 
     102,604  
     8,772  
     13,089  
     10,674  
     70,069 
  
    Accounts payable and accrued expenses 
     1,157,979  
     1,157,979  
     -  
     -  
     - 
  
    Total 
    $1,410,583  
    $1,166,751  
    $17,544  
    $17,544  
    $208,744 

26

Amounts related to contingent milestone payments
are not considered contractual obligations as they are contingent on the achievement of certain milestones. These contingent milestones
may or may not be achieved. We have not included any of these amounts in the table above as we cannot estimate or predict when, or if,
these amounts will become due.

Components of Results of Operations

Product Revenues - net of Discounts and
Rebates

We receive the majority of our product revenues
from sales of our Arakoda product to resellers in the U.S. and abroad. Foreign sales to both Australia and Europe are further subject
to profit sharing agreements for boxes sold to customers. Sales to resellers in the US are subject to considerable discounts and rebates
for services provided by our third-party logistics (“3PL”) partner and wholesalers and pharmacy benefit managers (“PBMs”).

Cost of Revenues, Gross Profit, and Gross
Margin

Cost of revenues associated with our products
is primarily comprised of direct materials, shipping, manufacturing-related costs incurred in the production process, serialization costs,
and inventory write-downs due to expiration.

Other Operating Revenues

Other operating revenues for the periods presented
include research revenue earned from the Australian Tax Authority for research activities conducted in Australia. Beginning in the third
quarter of 2024, we began to recognize research revenues associated with our new contract with the United States Army Medical Materiel
Development Activity (USAMMDA) for Arakoda supply chain upgrade support. Research revenue under this contract is recognized when we incur
the direct costs eligible for reimbursement, up to the maximum allowable amount.

Operating Expenses

Research and Development

Research and development costs for the periods
presented primarily consist of contracted R&D services and costs associated with preparation for and conducting our Babesiosis trial.
We expense all research and development costs in the period in which they are incurred. Payments made prior to the receipt of goods or