Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 641

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 641
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 the remaining service period.

For fully vested, nonforfeitable equity instruments
that are granted at the date the Company and a nonemployee enter into an agreement for goods or services, the Company recognizes the
fair value of the equity instruments on the grant date. The corresponding cost is recognized as an immediate expense or a prepaid asset
and expensed over the service period depending on the specific facts and circumstances of the agreement with the nonemployee. See Note
10 for further details.

Leases

The Company applies ASC Topic 842, Leases
(“ASC 842”) to its operating leases, which are reflected on the consolidated balance sheets within Right of Use (ROU)
Asset and the related current and non-current operating Lease Liability. ROU assets represent the right to use an underlying asset for
the lease term, and lease liabilities represent the obligation to make lease payments arising from lease agreements. Leases with an initial
term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over
the lease term, subject to any changes in the lease or expectation regarding the terms. Variable lease costs such as common area maintenance,
property taxes and insurance are expensed as incurred.

The Company determines if an arrangement is a
lease at contract inception. The Company’s contracts are determined to contain a lease when all of the following criteria, based
on the specific circumstances of the arrangement, are met: (1) there is an identified asset for which there are no substantive substitution
rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company
has the right to direct the use of the identified asset.

At the commencement date, operating lease liabilities
and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease
term. The Company’s lease agreement does not provide an implicit rate. As a result, the Company utilizes an estimated incremental
borrowing rate (“IBR”), to discount lease payments, which represents the rate of interest the Company would pay to borrow,
on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.

F-17

Net Loss per Common Share

Net Loss per Common Share is computed by dividing
net loss attributable to common shareholders by the weighted average number of common shares outstanding during each period. The Company
has included the Pre-Funded Warrants issued in January 202