Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 971

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 971
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 the Consolidated Balance Sheets and any change in fair value unrelated to credit
risk is recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Loss. Changes in fair value related
to credit risk are recognized in Other Comprehensive Loss. As a result of the completion of the IPO, all financial instruments for which
the FVO was elected were extinguished. See Note 7 for more information on the extinguishment of the Promissory Notes.

The Company’s financial instruments recorded
at fair value on a recurring basis at December 31, 2024, and December 31, 2023 include the derivative liability associated with the contingent
milestone payment due to Knight upon a future sale of Arakoda™ or a Change of Control, which is carried at fair value based on Level
3 inputs. The Company uses a probability-weighted expected return method to determine the fair value of the contingent milestone payment
using significant inputs such as the timing and probability of discrete potential exit scenarios, forward interest rate curves, and discount
rates based on implied and market yields. See Note 8 for more information on Derivative Liabilities.

Liabilities measured at fair value at December 31, 2024 and 2023 are
as follows:

    December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $         -  
    $        -  
    $640,830  
    $640,830 
  
    Total 
    $-  
    $-  
    $640,830  
    $640,830 

    December 31, 2023 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $          -  
    $         -  
    $2,306,796  
    $2,306,796 
  
    Total 
    $-  
    $-  
    $2,306,796  
    $2,306,796 

There were no transfers of financial instruments
between Level 1, Level 2, and Level 3 during the periods presented. However, certain liabilities measured at fair value and using Level
3 inputs were extinguished during the year ended December 31