Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 941

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 941
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 expected volatility, risk-free interest rate, expected dividends and the expected term
of the option. Due to the lack of a public market for our common stock prior to the IPO and lack of company-specific historical implied
volatility data, we base our computations of expected volatility on the historical volatility of a representative group of public companies
with similar characteristics of the Company, including stage of development and industry focus. The historical volatility is calculated
based on a period of time commensurate with the expected term assumption. We generally use the simplified method as prescribed by the
SEC Staff Accounting Bulletin Topic 14, Share-Based Payment, to estimate the expected term for stock options, whereby, the expected
term equals the midpoint of the weighted average remaining time to vest, vesting period and the contractual term of the options due to
our lack of historical exercise data. For certain options granted out-of-the-money, our best estimate of the expected term is the contractual
term of the award. The risk-free interest rate is based on U.S. Treasury securities with a maturity date commensurate with the expected
term of the associated award. The expected dividend yield is assumed to be zero as we have never paid dividends and have no current plans
to pay any dividends on our common stock. The assumptions used in calculating the fair value of share-based awards represent our best
estimates and involve inherent uncertainties and the application of significant judgment.

We recognize compensation expense for restricted
stock units (“RSUs”) with only service-based vesting conditions on a straight-line basis over the vesting period. Compensation
cost for service-based RSUs is based on the grant date fair value of the award, which is the closing market price of our common stock
on the grant date multiplied by the number of shares awarded.

For awards that vest upon a liquidity event or
a change in control, the performance condition is not probable of being achieved until the event occurs. As a result, no compensation
expense is recognized until the performance-based vesting condition is achieved, at which time the cumulative compensation expense is
recognized. Compensation cost related to any remaining time-based service for share-based awards after the liquidity-based event is recognized
on a straight-line basis over the remaining service period.

For fully vested, nonforfeitable equity instruments
that are granted at the date we enter into an agreement for goods or services with a nonemployee, we recognize the fair value of the
equity instruments on the grant date. The corresponding cost is recognized as an immediate expense or a prepaid asset