Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 86

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 (the “1:5 Reverse Stock Split”,
and together with the 1:12 Reverse Stock Split, the “Reverse Stock Splits”). Beginning February 24, 2025, the common stock
traded on The Nasdaq Capital Market on a split adjusted basis.

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 condensed 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.

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