Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 106

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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, 2025:

    Contingent Milestone Payment  
    Total 
  
    Derivative liabilities - December 31, 2024 
    $640,830  
    $640,830 
  
    Change in fair value 
     (5,105) 
     (5,105)
  
    Derivative liabilities - March 31, 2025 
    $635,725  
    $635,725 

19

A reconciliation of the beginning and ending balances
for the derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows
for the three months ended March 31, 2024:

    Contingent Milestone Payment  
    Total 
  
    Derivative liabilities - December 31, 2023 
    $2,306,796  
    $2,306,796 
  
    Change in fair value 
     (1,740,847) 
     (1,740,847)
  
    Derivative liabilities - March 31, 2024 
    $565,949  
    $565,949 

Changes in the fair value of derivative liabilities
are included in other income in the accompanying consolidated condensed statements of operations and comprehensive (loss) income. During
the three months ended March 31, 2025 and 2024, the Company recorded a net change in the fair of derivative liabilities of ($5,105) and
($1,740,847), respectively.

9. INCOME TAXES

The Company did not record a federal income tax
provision or benefit for the three months ended March 31, 2025 and 2024 due to taxable losses. The Company recorded a provision for income
taxes for DC of $63 for the three months ended March 31, 2025, thereby reflecting the minimum statutory tax due ($63 for the three months
ended March 31, 2024).

10. SHARE-BASED COMPENSATION

The following is a summary of share-based compensation
expenses reported in the Consolidated Condensed Statements of Operations and Comprehensive (Loss) Income for the three months ended March
31, 2025 and 2024:

    For the Three Months Ended March 31, 

    2025  
    2024 
  
    General and Administrative Expenses 
    $186,763  
    $125,368