Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1128

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1128
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 allocated to owners other than the Company. The aggregate of the income
or loss and corresponding equity that is not owned by us is included in Noncontrolling Interest in the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates, and those estimates may be material. Significant estimates include
the reserve for inventory, the fair value of derivative liabilities, and stock-based compensation.

Reverse Stock Splits

Following stockholder approval in July 2024,
the Company effected a reverse stock split at a ratio of 1:12 (the “1:12 Reverse Stock Split”), which was effective as of
August 12, 2024. Following stockholder approval in November 2024, the Company effected an additional reverse stock split at a ratio of
1:5 (the “1:5 Reverse Stock Split”, and together with the 1:12 Reverse Stock Split, the “Reverse Stock Splits”),
which was effective as of February 24, 2025 (See Note 12 – Subsequent Events).

F-10

Proportional adjustments were made to the number
of shares of common stock issuable upon exercise or conversion of the Company’s equity awards, warrants, and other equity instruments
convertible into common stock, as well as the respective exercise prices, if applicable, in accordance with the terms of the instruments.
Unless otherwise noted, all references to numbers of shares of the Company’s common stock and per share information presented in
these consolidated financial statements have been retroactively adjusted, as appropriate, to reflect the Reverse Stock Splits, including
reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital.

Cash and Cash Equivalents

The Company’s cash consists of cash deposited
in demand accounts at financial institutions, which are insured by the Federal Deposit Insurance Corporation (“FDIC”). The
Company considers short-term highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s
cash and cash equivalents, at times, may exceed the FDIC insurable limits (currently $250,000). The Company has not experienced any losses
related to amounts in excess of FDIC Limits. The Company periodically assesses the