Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 20

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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.

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 10 for further details. 

12

Net (Loss) Income per Common Share

Net (Loss) Income per Common Share is computed
by dividing net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding during each
period. The Company includes pre-funded warrants, which carry a nominal exercise price per share, in its computation of basic and diluted
net loss per share beginning on the date of issuance. The cumulative dividends accrued on the Series A Preferred Stock during the period
are reflected as an addition to net loss or a reduction of net income in determining basic and diluted net (loss) income attributable
to common stockholders.

As the Company reported a net loss for the three
months ended March 31, 2025, the calculation of diluted net loss per common share is the same as basic net loss per common share. For
the three months ended March 31, 2024, all securities that could potentially dilute basic net income per share in the future have been
excluded from the diluted calculation because the effect would be antidilutive.

As a result of the Reverse