Company: SXTPW
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-014334
Chunk: 284

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-02-14
Form: S-1
Chunk 284
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 market for the Company’s common stock prior to the IPO and lack of company-specific
historical implied volatility data, the Company has based its computations of expected volatility on the historical volatility of a representative
group of public companies with similar characteristics of the Company, including stage of development and industry focus. The historical
volatility is calculated based on a period of time commensurate with the expected term assumption. The Company uses the simplified method
as prescribed by the SEC Staff Accounting Bulletin Topic 14, Share-Based Payment, to calculate the expected term for stock options,
whereby, the expected term equals the midpoint of the weighted average remaining time to vest, vesting period and the contractual term
of the options due to its lack of historical exercise data. The risk-free interest rate is based on U.S. Treasury securities with a maturity
date commensurate with the expected term of the associated award. The expected dividend yield is assumed to be zero as the Company has
never paid dividends and has no current plans to pay any dividends on its common stock. The assumptions used in calculating the fair value
of share-based awards represent management’s best estimates and involve inherent uncertainties and the application of significant
judgment.

F-48 Compensation expense for restricted stock units (“RSUs”) with only service-based vesting conditions is recognized on a straight-line basis over the vesting period. 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. For awards that vest upon a liquidity event or a change in control, the performance condition is not probable of being achieved until the event occurs. As a result, no compensation expense is recognized until the performance-based vesting condition is achieved, at which time the cumulative compensation expense is recognized. Compensation cost related to any remaining time-based service for share-based awards after the liquidity-based event is recognized on a straight-line basis over 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 11 for further details. Leases The Company applies ASC Topic 842, Leases(“ASC