Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 675

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 675
---
 share-based payments for research and development
costs for which the grant date criteria has been met and the services are expected to be rendered within one year is $129,710 ($2,730,685
at December 31, 2023), which is presented as a component of Prepaid and Other Assets on the accompanying Consolidated Balance Sheets.

In addition to share-based payments for research
and development services, during the years ended December 31, 2024 and 2023, 0 and 9,217 common stock shares, respectively, were issued
as fully vested, nonforfeitable equity instruments to nonemployees. As of December 31, 2024, the unamortized balance of current prepaid
assets related 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