Company: SXTPW
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-014334
Chunk: 280

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-02-14
Form: S-1
Chunk 280
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 No. 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, research and development costs are expensed as incurred. Accordingly, internal research and development costs are expensed as incurred. Prepaid research and development costs are deferred and amortized over the service period as the services are provided. The Company recorded $ 691,770in research and development costs during the year ended December 31, 2023 ($ 525,563for the year ended December 31, 2022). During the year ended December 31, 2023, the Company has also issued shares of common stock to nonemployees in exchange for research and development services. The Company recognizes prepaid research and development costs on the grant date, as defined in FASB ASC Subtopic No. 718, Compensation-Stock Compensation. See Note 11 for further details. F-46

Fair Value of Financial Instruments and the Fair Value Option (“FVO”)

The carrying value of the Company’s financial
instruments included in current assets and current liabilities (such as cash and cash equivalents, accounts receivable, accounts payable,
and accrued expenses) approximate their fair value due to the short-term nature of such instruments.

The inputs used to measure fair value are based
on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to
lowest priority, are described below:

| Level 1 | - | Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. |

| Level 2 | - | Observable prices that are based on inputs not quoted on active markets but corroborated by market data. |

| Level 3 | - | Unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. |

The Company may choose to elect the FVO for certain
eligible financial instruments, such as certain Promissory Notes, in order to simplify the accounting treatment. Items for which the FVO
has been elected are presented at fair value in the Consolidated Balance Sheets and any change in fair value unrelated to credit risk
is recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Loss. Changes in fair value related to
credit risk are recognized in Other Comprehensive Loss. As a result of the completion of the IPO, all financial instruments for which
the FVO was elected were extinguished. See Note