Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 47

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 revenues for the periods presented
include research revenue earned from the Australian Tax Authority for research activities conducted in Australia. Beginning in the third
quarter of 2024, we began to recognize research revenues associated with our new contract with the United States Army Medical Materiel
Development Activity (USAMMDA) for Arakoda supply chain upgrade support. Research revenue under this contract is recognized when we incur
the direct costs eligible for reimbursement, up to the maximum allowable amount.

Operating Expenses

Research and Development

Research and development costs for the periods
presented primarily consist of contracted R&D services and costs associated with preparation for and conducting our Babesiosis trial.
We expense all research and development costs in the period in which they are incurred. Payments made prior to the receipt of goods or
services to be used in research and development are recognized as prepaid assets and expensed over the service period as the services
are provided. We have also issued shares of our common stock to vendors in exchange for research and development services.

General and Administrative Expenses

Our general and administrative expenses primarily
consist of salaries, advertising and promotion expenses, professional services fees, such as consulting, audit, accounting and legal fees,
general corporate costs and allocated costs, including facilities, information technology and amortization of intangibles.

Interest and Other Income (Expense), Net

We earn interest income from cash invested in
interest-bearing accounts, as well as cash equivalents and short-term investments consisting of certificates of deposits with original
maturities ranging from three to six months. Interest expense for the periods presented is limited to a single $150,000 SBA loan that
bears interest at 3.75%. Other components of other income (expense) include changes in the fair value of derivative liabilities and other
miscellaneous income or expenses.

27

Results of Operations 

The following table sets forth our results of
operations for the periods presented:

    For the Three Months Ended March 31, 
  
    Consolidated Statements of Operations Data: 
    2025  
    2024 
  
    Product Revenues – net of Discounts and Rebates 
    $163,552  
    $105,674 
  
    Cost of Revenues 
     73,272  
     65,437 
  
    Gross Profit 
     90,280  
     40,237 
  
    Research Revenues 
     92,731  
     29,631 
  
    Net Revenue 
     183,011