Company: SXTPW
Filing Date: 2025-03-27
Form Type: S-1/A
Source: 0001013762-25-003353
Chunk: 243

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: S-1/A
Chunk 243
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 For clarification purposes, the first royalty payment will be performed following the above instructions, on the first calendar quarter in which the Qualified IPO takes place and will cover the sales for the period from January 1, 2022 until the end of said calendar quarter. |

The Company evaluated the January 9, 2023 exchange agreement in accordance with ASC 470-50 and concluded that the debt qualified for debt extinguishment because a substantial conversion feature was added to the debt terms. Upon extinguishment, in January 2023, the Company recorded a loss upon extinguishment in the amount of $ 839,887and elected to recognize the new debt under the ASC 825 fair value option until it was settled, which occurred in the third quarter of 2023 (see below). Therefore, there were no amounts outstanding as of December 31, 2024 or December 31, 2023.

F-26

A reconciliation of the beginning and ending balances for the Convertible Knight Note, which was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows for the year ended December 31, 2023:

| Promissory Notes, at fair value at December 31, 2022 
 Fair value at modification date - January 9, 2023    |     | Convertible 
 Knight      
 Note,       
 at fair     
 value       |           - 
  21,520,650 |   |
|:-----------------------------------------------------|:----|:------------|------------:|:--|
| Change in fair value                                 |     |             |  (5,379,269 | ) |
| Accrued interest recognized                          |     |             |   1,293,549 |   |
| Extinguishment of Promissory Notes                   |     |             | (17,434,930 | ) |
| Promissory Notes, at fair value at December 31, 2023 |     | $           |           - |   |

As a result of the completion of the IPO and as required under the terms of the Knight Debt Conversion Agreement, the cumulative outstanding principal as of March 31, 2022 converted to 18,473shares of common stock (representing 19.9% ownership of the Company’s common stock after giving effect to the IPO). In addition, the entirety of the accumulated interest as of March 31, 2022 converted into 80,965shares of Series A Preferred Stock at the conversion rate