Company: SXTPW
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-014334
Chunk: 299

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-02-14
Form: S-1
Chunk 299
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 debt discount           |     |        |         - |   |     |         |         - |   |     |        |         - |   |
| Add: accrued interest on promissory notes |     |        |         - |   |     |         |         - |   |     |        |         - |   |
| Balance - December 31, 2023               |     | $      |         - |   |     | $       |         - |   |     | $      |         - |   |

| 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 (a) and (b)               |

For the years ended December 31, 2023 and 2022, the Company recorded amortization of debt discounts, including issuance costs, of $ 670,550and $ 664,780, respectively.

As a result of the completion of the IPO and as required under the terms of the Related Party Notes, the entirety of the outstanding principal balance converted to 79,926shares of common stock at a conversion rate equal to 80% of the IPO price, fully satisfying the Company’s obligations with respect to the principal amount. In addition, the Company made cash payments to the related party holders totaling $ 31,968in full settlement of the outstanding accrued interest and Extension Payments. The Company recognized a final mark to market adjustment of the embedded derivative liability (conversion feature), and as a result, no gain or loss was recognized on the debt extinguishment.

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. Should an IPO not occur by January 1, 2024 then all terms of the original debt would resume including any interest earned after March 31,