Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 497

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 497
---
,790) 
     1,455  
     (45,207) 
     -  
     (149,542)
  
    Conversion of convertible promissory notes 
     (1,422,636) 
     -  
     (35,165) 
     -  
     (1,457,801)
  
    Reclassification of warrants to equity 
     -  
     (838,748) 
     -  
     -  
     (838,748)
  
    Recognition of contingent milestone liability 
     -  
     -  
     -  
     2,117,142  
     2,117,142 
  
    Change in fair value 
     -  
     -  
     -  
     189,654  
     189,654 
  
    Derivative liabilities - December 31, 2023 
    $-  
    $-  
    $-  
    $2,306,796  
    $2,306,796 

F-28

Changes in the fair value of derivative liabilities
are included in other income (expense) in the accompanying consolidated statements of operations and comprehensive loss. During the years
ended December 31, 2024 and 2023, the Company recorded a net gain (loss) on the change in the fair of derivative liabilities of $1,665,966
and ($37,278), respectively.

Prior to the Company’s IPO, the fair value
of the Company’s potential future issuances of common stock related to common stock issued with promissory notes, warrants and
embedded conversion features in convertible promissory notes was established with an estimate using the Monte Carlo Simulation Model
to compute fair value as of each reporting date. The Monte Carlo simulation requires the input of assumptions, including our stock price,
the volatility of our stock price, remaining term in years, expected dividend yield, and risk-free rate. In addition, the valuation model
considered the probability of the occurrence or nonoccurrence of an IPO within the terms of liability-classified financial instruments,
as an IPO could potentially impact the settlement. The Company used the Monte Carlo Simulation Model to re-measure the liability-classified
bridge shares, warrants and embedded conversion features in convertible promissory notes to their respective fair values at each subsequent
reporting date prior to the