Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 108

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 108
---
 rate   4.36%   N/A   Expected volatility   90.00%   N/A   Expected term (years)   4.50    N/A   Expected dividend yield   0.00%   N/A  

For the three months ended March 31, 2025, the
Company recognized $142,645 of compensation expense related to stock option awards ($0 for the three months ended March 31, 2024).

Restricted Stock Units

Compensation cost for service-based RSUs is based
on the grant date fair value of the award, which is the closing market price of the Company’s common stock on the grant date multiplied
by the number of shares awarded.

During the three months ended March 31, 2025 and
2024, 0 shares of common stock underlying RSUs vested and no RSUs were granted. The Company recognized $0 of compensation expense related
to vested RSUs for the three months ended March 31, 2025 and 2024.

Annual Performance Bonus

In December 2024,
the Board approved the payment of 2024 performance bonuses to executives of the Company. Each executive was provided the option of receiving
up to $20,000 in cash, with the remainder paid in shares of common stock determined based on the closing market price on January 2, 2025.
On January 20, 2025, the Company issued a total of 15,809 shares of common stock to the executives in settlement of the share-based portion
of the 2024 performance bonuses. Approximately 2,748 shares were withheld to cover payroll tax withholdings. 

Share-Based Payments to Vendors for Services

In 2023, the Company issued shares of common stock
as share-based payments to certain vendors in exchange for services to be rendered to the Company in the future. 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 as a prepaid asset on the grant date, as defined in ASC 718. The corresponding cost
is expensed over the service period depending on the specific facts and circumstances of the agreement with the nonemployee. As of March
31, 2025, the remaining unamortized balance of prepaid assets related to these share-based payments for which