Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1127

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1127
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 needed, it may be required to delay, limit, reduce or terminate its product development or
future commercialization efforts or grant rights to develop and market its product candidates even if the Company would otherwise prefer
to develop and market such product candidates itself.

As such, management concluded that such plans
do not alleviate the substantial doubt about the ability of the Company to continue as a going concern for one year from the date these
financial statements are issued.

These financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the satisfaction of obligations in the normal course of business, and do not include
any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company be unable to continue
as a going concern.

F-9

2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

Basis of Presentation

The financial statements of 60P and its subsidiary
are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The
Company has prepared the accompanying consolidated financial statements pursuant to the instructions to Form 10-K and Article 8 of Regulation
S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments considered necessary
for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of
a normal and recurring nature.

Principles of Consolidation and Noncontrolling Interest

The Company’s consolidated financial statements
include the financial statements of its majority owned subsidiary 60P Australia Pty Ltd. All significant intercompany accounts and transactions
have been eliminated in consolidation.

On August 2, 2023, Geoffrey Dow assigned his
interest in 60P Australia Pty Ltd, of 904,436 common shares of 60P Australia Ltd, to the Company for no consideration, thereby increasing
the proportional ownership of 60P, Inc. in 60P Australia Pty Ltd from 87.53% to 96.61%. The purpose of this assignment was to eliminate
the related party conflict associated with Geoffrey Dow’s ultimate beneficial ownership in 60P Australia Pty Ltd being greater
than that of other 60P, Inc. shareholders. The increase in the Company’s proportional interest is reflected as a Contribution from
Noncontrolling Interest in the Consolidated Statements of Shareholders’ Equity.

For entities that are consolidated, but not 100%
owned, a portion of the income or loss and corresponding equity is