Company: SXTPW
Filing Date: 2025-03-27
Form Type: S-1/A
Source: 0001013762-25-003353
Chunk: 240

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: S-1/A
Chunk 240
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 (the “Related Party Notes”). Upon the closing of the IPO, these notes were mandatorily convertible at a conversion rate determined at a 20% discount to the IPO price, discussed further below. Additionally, each of these note holders received five-year (5) fully vested warrants upon the closing of the IPO, with an exercise price of 90% of the IPO price.

The Company performed an evaluation of the conversion features embedded in the Related Party Notes and the warrants and concluded that such instruments qualified for treatment as derivative liabilities under ASC 815 and required bifurcation from the host contract. See Note 8 for further details.

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 1,333shares 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 debt obligation. As such, as of December 31, 2024 and 2023 there were no amounts outstanding under the Related Party Notes.

Significant terms of the Bridge Notes and Related Party Notes are summarized as follows:

|                                   |     | 2022   
 Bridge 
 Notes  |           |   |     | Related 
 Party   
 Notes   |           |   |     | 2023   
 Bridge 
 Notes  |           |   |
| 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