Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 825

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 825
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 derivative
liabilities under ASC 815 and required bifurcation from the host contract. See Note 8 for further details.

As a result of the completion of the IPO and
as required under the terms of the Related Party Notes, the entirety of the outstanding principal balance converted to 1,333 shares of
common stock at a conversion rate equal to 80% of the IPO price, fully satisfying the Company’s obligations with respect to the
principal amount. In addition, the Company made cash payments to the related party holders totaling $31,968 in full settlement of the
outstanding debt obligation. As such, as of December 31, 2024 and 2023 there were no amounts outstanding under the Related Party Notes.

Significant terms of the Bridge Notes and Related
Party Notes are summarized as follows:

     2022  Bridge Notes   Related  Party Notes   2023  Bridge Notes   Issuance date of promissory notes   May 2022    May 2022    May 2023   Maturity date of promissory notes   1    1    2   Interest rate   10%   6%   10%  Default interest rate   15%   15%   15%  Collateral   Unsecured    Unsecured    Unsecured   Conversion rate   3    3    3  

    1 -
    earlier
                                of 1 year from date of issuance or closing of IPO, later extended to July 2023

    2 -
    earlier
                                of 1 year from date of issuance or closing of IPO

    3 -
    see discussion above for Bridge
    Notes and Related Party Notes, respectively

For the years ended December 31, 2024 and 2023,
the Company recorded amortization of debt discounts, including issuance costs, of $0 and $670,550, respectively.

F-25

Knight Debt Conversion

On January 9, 2023, and in two subsequent amendments,
the Company and Knight Therapeutics agreed to extinguish Knight’s debt in the event of an IPO. Key points of this agreement are
as follows:

●The Parties agreed to fix Knight’s cumulative debt to the value as it stood on March 31, 2022, which consisted of $10,770,037