Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 125

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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2024). According to our distributor, this is due
to greater interest in treating babesiosis.

29

Cost of Revenues, Gross Profit, and Gross Margin

Cost of revenues was $73,272 for the three months ended March 31, 2025,
as compared to $65,437 for the three months ended March 31, 2024. The increase in cost of goods sold is primarily driven by the inflationary
increase in fixed COGS charges for serialization and inventory material charges. Despite the increase, the Gross Margin % increased from
38.08% for the three months ended March 31, 2024 to 55.20% for the three months ended March 31, 2025. This is primarily attributable to
the growth in revenues. As the sales volume has increased, the gross margin has improved as the variable cost of goods of each unit sold
is substantially less than the sales price.

Other Operating Revenues

    For the Three Months Ended  March 31,  

    Consolidated Statements of Operations Data: 
    2025  
    2024  
    $ Change  
    % Change 
  
    Research Revenues 
    $92,731  
    $29,631  
    $63,100  
     212.95%

The research revenues earned by us were $92,731
for the three months ended March 31, 2025, as compared to $29,631 for the three months ended March 31, 2024. The increase in research
revenues is due to the new USAMMDA contract we were awarded in July 2024 to facilitate commercial validation of a new bottle and replacement
blister packaging of Arakoda. We recognized research revenues of $77,966 related to this grant for the three months ended March 31, 2025
($0 for the three months ended March 31, 2024). We also recognized research revenues from the Australian Tax Authority for research activities
conducted in Australia of $5,138 for the three months ended March 31, 2025 ($29,631 for the three months ended March 31, 2024).

Operating Expenses

    For the Three Months Ended March 31,  

    Consolidated Statements of Operations Data: 
    2025  
    2024  
    $ Change  
    % Change 
  
    Research and Development 
    $407,622