Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 968

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 968
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 recognize interest and penalties related to unrecognized tax benefits.

Concentrations

Financial instruments that potentially subject
the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable,
inventory purchases, and borrowings.

Significant customers represent any customer
whose business makes up 10% of receivables or revenues. At December 31, 2024, significant customers represented 95% of receivables (consisting
of three customers and one significant customer) and 95% of total net product revenues (consisting of three customers and one significant
customer). At December 31, 2023, significant customers represented 92% of receivables (consisting of three customers and two significant
customers at 79% and 13%, respectively) and 93% of total net product revenues (consisting of two significant customers at 72% and 21%,
respectively).

Currently, the Company has exclusive relationships with distributors
in Australia and Europe. A failure to perform by any of our current distributors would create disruption for patients in those markets.

Since the Company first started working on tafenoquine
all inventory has been acquired in a collaborative relationship from a sole vendor. Should the vendor cease to supply tafenoquine it
would take significant costs and efforts to rebuild the supply chain with a new sole vendor sourcing the active pharmaceutical ingredient
(“API”).

Segment Information

Since its inception, the Company operates and
manages its business as a single identifiable segment, focused on the development and marketing of new medicines for the treatment and
prevention of infectious diseases. The determination of a single business segment is consistent with the consolidated financial information
regularly provided to the Company’s chief operating decision maker (“CODM”). 

The Company’s CODM is its Chief Executive
Officer, who reviews and evaluates consolidated net income or loss for purposes of evaluating performance, making operating decisions,
allocating resources, and planning and forecasting for future periods. The significant components of consolidated net income or loss
regularly provided to the CODM include net product revenues and the significant expense categories presented in the accompanying Consolidated
Statements of Operations and Comprehensive Loss (cost of revenues, research and development, and general and administrative expenses).
These are presented at the consolidated level and used by the CODM to monitor budgeted versus actual results to make key operating decisions.
The information and operating expense categories presented in the accompanying Consolidated Statements of Operations and Comprehensive
Loss are fully reflective of the