Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 104

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 104
---
On May 14, 2020, the Company received COVID-19
EIDL lending from the Small Business Administration (SBA) in the amount of $150,000. The loan bears interest at an annual rate of 3.75%
calculated on a monthly basis. Monthly payments of $731 were required beginning in November 2022, with a final balloon payment equal to
the remaining principal due at the maturity date of October 12, 2050. The balance as of March 31, 2025 and December 31, 2024 was $155,274
and $155,891, respectively. The current maturity at March 31, 2025 is $8,772 and the long-term liability is $146,502 ($8,772 and $147,119
at December 31, 2024, respectively). The loan is collateralized by all tangible and intangible personal property of the Company. The Company
is prohibited from accepting future advances under any superior liens on the collateral without the prior consent of SBA.

18

The current future payment obligations of the
principal are as follows:

    Period 
    Principal Payments 
  
    2025 (remaining nine months) 
    $- 
  
    2026 
     404 
  
    2027 
     3,217 
  
    2028 
     3,332 
  
    2029 
     3,467 
  
    Thereafter 
     139,580 
  
    Total 
    $150,000 

8. DERIVATIVE LIABILITIES

In accordance with the provisions of ASC 815,
derivative liabilities are initially measured at fair value at the commitment date and subsequently remeasured at each reporting period,
with any increase or decrease in the fair value recorded in the results of operations within other income/expense as the change in fair
value of derivative liabilities.

As of March 31, 2025 and December 31, 2024, derivative
liabilities consist of the contingent milestone payment due to Knight Therapeutics, Inc. (“Knight”), a former lender of the
Company, as required by the Debt Conversion Agreement executed between the Company and Knight on January 9, 2023, as subsequently amended
(the “Knight Debt Conversion Agreement”). Key points of this agreement were as follows:

●The Parties agreed to fix Knight’s
cumulative debt to the value as it stood on March 31, 2022