Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 676

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 676
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 subsequently amended,
the Company entered into the lease agreement with CXI Corp to rent business premises. In January 2023, the lease was extended for an
additional twelve-month term, which expired on March 31, 2024. In December 2023, the Company executed an additional amendment with CXI
Corp, pursuant to which the Company agreed to relocate to a new office space as of April 1, 2024 for a one year term that expires on
March 31, 2025. The Company accounted for the December 2023 amendment as a separate contract. In December 2024, the Company executed
an additional amendment to renew the lease for an additional one-year term that expires March 31, 2026. As the term of the office lease
is 12 months, the lease is not recorded on the balance sheet. The Company recognizes lease expense on this lease as short-term lease
costs.

Operating lease costs, including short-term leases,
were in the amount of $28,867 and $55,084 for the years ended December 31, 2024 and 2023, respectively.

Board of Directors

In November and December 2022, the Company signed
agreements with four director nominees (Cheryl Xu, Paul Field, Charles Allen and Stephen Toovey) which came into effect on July 11, 2023,
the date the Company’s Registration Statement was declared effective. Each director is entitled to receive cash compensation of
$11,250 quarterly. In addition, the two non-audit committee chairs (Toovey, Field) will receive $1,250 per quarter and the audit committee
chair (Allen) will receive an additional $2,000 per quarter. In addition, each director is entitled to receive annual equity-based compensation
awards, with the amounts and terms to be determined by the Compensation Committee.

In November 2024, the Company paid each non-executive
director an additional $20,000 of cash compensation in lieu of granting equity-based compensation awards for the year ended December
31, 2024.

Contingencies

The Company’s operations are subject to
a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions
on its operations, or losses of permits that could result in the Company ceasing operations.

Contingent Compensation 

Following the Company’s IPO and the conversion
of the outstanding debt pursuant to the Knight Debt Conversion Agreement as discussed