Company: SXTPW
Filing Date: 2025-02-14
Form Type: S-1
Source: 0001213900-25-014334
Chunk: 253

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-02-14
Form: S-1
Chunk 253
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 conversion or redemption in full of the Preferred Stock, Company shall pay Lender a royalty equal to 3.5% of the Company’s net sales (the “Royalty”), where “Net Sales” has the same meaning as in the Company’s license agreement with the U.S. Army for tafenoquine. Upon success of the Qualified IPO, the Company shall calculate the royalty payable to Knight at the end of each calendar quarter. The Company shall pay to Knight the royalty amounts due with respect to a given calendar quarter within fifteen (15) business days after the end of such calendar quarter. Each payment of royalties due to Knight shall be accompanied by a statement specifying the total gross sales, the net sales and the deductions taken to arrive to net sales. 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. In January 2023, the Company recorded a loss upon extinguishment in the amount of $ and 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 September 30, 2024 or December 31, 2023.

A reconciliation of the beginning and ending balances
for the Convertible Knight Note, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
is as follows for the three and nine months ended September 30, 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 |   |
|:------------------------------------------------------|:----|:------------|------------:|:--|
| Fair value - mark to market adjustment                |     |             |    (339,052 | ) |
| Accrued interest recognized                           |     |             |     634,243 |   |
| Promissory Notes, at fair