Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1009

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 1009
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 to these share-based payments for which the services are expected to be rendered within one year is $176,471 ($948,581
at December 31, 2023), which is reported in Prepaid and Other Assets on the Consolidated Balance Sheets. The unamortized balance of noncurrent
prepaid assets related to these share-based payments for which the services are expected to be rendered beyond one year is $66,176 ($242,647
at December 31, 2023), reported in Long-Term Prepaid Expense on the Consolidated Balance Sheets. 

The agreements with the nonemployees do not include
any provisions to claw back the share-based payments in the event of nonperformance by the nonemployees. Subject to applicable federal
and state securities laws, the nonemployees can sell the received equity instruments.

Deemed Capital Contribution for Related Party Compensation Expense

During the year ended December 31, 2023, the
Company’s Chief Executive Officer, Geoff Dow, and Chief Financial Officer, Tyrone Miller, agreed to forego payment of cash compensation
for certain periods they were active employees of the Company. In accordance with SEC Staff Accounting Bulletin (“SAB”) 5T,
Accounting for Expenses or Liabilities Paid by Principal Stockholder(s), the Company recorded $163,228 as general and administrative
expense as a deemed capital contribution, which was reflected as an increase in Additional Paid-in Capital in the consolidated financial
statements. The deemed capital contribution represents the compensation costs that would have been paid by the Company during the year
ended December 31, 2023 had the officers not agreed to non-payment.

F-34

11. COMMITMENTS AND CONTINGENCIES

Operating Lease

On February 3, 2016, and subsequently amended,
the Company entered into the lease agreement with CXI Corp to rent business premises. In January 2023, the lease was extended for an
additional twelve-month term, which expired on March 31, 2024. In December 2023, the Company executed an additional amendment with CXI
Corp, pursuant to which the Company agreed to relocate to a new office space as of April 1, 2024 for a one year term that expires on
March 31, 2025. The Company accounted for the December 2023 amendment as a separate contract. In December 2024, the Company executed
an additional amendment to renew the lease for an additional one-year term that expires March 31, 2026