Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 338

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 338
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 RSUs which were fully vested as of December 31, 2023. At December
31, 2024, the Company had no unrecognized compensation cost related to unvested RSUs.

F-33

Annual Performance Bonus

In December 2024, the Board approved the payment
of 2024 performance bonuses to executives of the Company. Each executive was provided the option of receiving up to $20,000 in cash,
with the remainder paid in shares of common stock determined based on the closing market price on January 2, 2025. All shares issued
are eligible for net settlement up to the maximum allowable amount according to the IRS of 22%. As the number of shares is variable,
the Company determined this represents a liability for the fixed monetary amount that will be settled in shares. As of December 31, 2024,
the share-based liability amounted to $121,544, which is presented as a component of Accounts Payable and Accrued Expenses on the accompanying
Consolidated Balance Sheets. The share-based portion of the 2024 performance bonuses was settled by the Company on January 20, 2025.
See Note 12.

Share-Based Payments to Vendors for Services

During the years ended December 31, 2024 and
2023, the Company issued 0 and 15,500 fully vested, nonforfeitable common stock shares, respectively, as share-based payments to two
nonemployees, Florida State University Research Fund, Inc. and Kentucky Technology Inc, in exchange for research and development services
to be rendered to the Company in the future. The Company recognizes prepaid research and development costs on the grant date, as defined
in ASC 718. Florida State University Research Fund, Inc. agreed to render research and development services related to the development
of celgosivir over a period of up to five years using the proceeds from the sale of the Company’s common shares to fund the services.
Prepaid research and development costs recognized associated with the Florida State University Research Fund, Inc. are expected to be
rendered within one year. Kentucky Technology Inc. agreed to furnish a written report on the potential development of SJ733 + tafenoquine
in exchange for fully vested shares of the Company’s common stock. On May 3, 2024, the Company indicated to Kentucky Technology,
Inc. that the report (delivered in April 2024) was acceptable to the Company. Upon acceptance, the Company recognized $2,625,