Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1139

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1139
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 been reclassified
for consistency with the current period presentation. These reclassifications had no material effect on the consolidated results of operations
and comprehensive loss, shareholders’ equity, or cash flows.

F-16

Share-Based Payments

On November 22, 2022, the Company adopted the
2022 Equity Incentive Plan also referred to as (“2022 Plan”). The 2022 Plan and related share-based awards are discussed
more fully in Note 10.

The Company accounts for share-based payments
in accordance with ASC Subtopic 718, Compensation - Stock Compensation (“ASC 718”). The Company measures compensation
for all share-based payment awards granted to employees, directors, and nonemployees, based on the estimated fair value of the awards
on the date of grant. For awards that vest based on continued service, the service-based compensation cost is recognized on a straight-line
basis over the requisite service period, which is generally the vesting period of the awards. For service vesting awards with compensation
expense recognized on a straight-line basis, at no point in time does the cumulative grant date value of vested awards exceed the cumulative
amount of compensation expense recognized. The grant date is determined based on the date when a mutual understanding of the key terms
of the share-based awards is established. The Company accounts for forfeitures as they occur. 

The Company estimates the fair value of all stock
option awards as of the grant date by applying the Black-Scholes option pricing model. The application of this valuation model involves
assumptions, including the fair value of the common stock, expected volatility, risk-free interest rate, expected dividends and the expected
term of the option. Due to the lack of a public market for the Company’s common stock prior to the IPO and lack of company-specific
historical implied volatility data, the Company has based its computations of expected volatility on the historical volatility of a representative
group of public companies with similar characteristics of the Company, including stage of development and industry focus. The historical
volatility is calculated based on a period of time commensurate with the expected term assumption. The Company generally uses the simplified
method as prescribed by the SEC Staff Accounting Bulletin Topic 14, Share-Based Payment, to estimate the expected term for stock
options, whereby, the expected term equals the midpoint of the weighted average remaining time to vest, vesting period and the contractual
term of the options due to its lack of historical exercise data. For certain options granted out-of-the-money,