Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 13

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 the reduction in par value of common stock to additional paid-in capital.

Concentrations

Financial instruments that potentially subject
the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable,
inventory purchases, and borrowings.

Significant customers represent any customer whose
business makes up 10% of receivables or revenues. At March 31, 2025, significant customers represented 94% of receivables (consisting
of five total customers and two significant customers at 81% and 13%, respectively), and 95% of receivables at December 31, 2024 (consisting
of three customers and one significant customer). For the three months ended March 31, 2025, significant customers comprised 85% of total
net product revenues (consisting of three total customers and one significant customer). For the three months ended March 31, 2024, 99%
of total net revenues (consisting of three customers and one significant customer) were generated from significant customers.

Currently, the Company has exclusive relationships
with distributors in Australia and Europe. A failure to perform by any of our current distributors would create disruption for patients
in those markets.

Since the Company first started working on tafenoquine
all inventory has been acquired in a collaborative relationship from a sole vendor. Should the vendor cease to supply tafenoquine it would
take significant costs and efforts to rebuild the supply chain with a new sole vendor sourcing the active pharmaceutical ingredient (“API”).

Segment Information

Since its inception, the Company operates and
manages its business as a single identifiable segment, focused on the development and marketing of new medicines for the treatment and
prevention of infectious diseases. The determination of a single business segment is consistent with the consolidated financial information
regularly provided to the Company’s chief operating decision maker (“CODM”).

The Company’s CODM is its Chief Executive
Officer, who reviews and evaluates consolidated net income or loss for purposes of evaluating performance, making operating decisions,
allocating resources, and planning and forecasting for future periods. The significant components of consolidated net income or loss regularly
provided to the CODM include net product revenues and the significant expense categories presented in the accompanying Consolidated Condensed
Statements of Operations and Comprehensive (Loss) Income (cost of revenues, research and development, and general and administrative expenses).
These are presented at the consolidated level and used by the CODM to monitor budgeted versus actual results