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

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
 warrants meet all of the requirements
for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock and whether
the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control,
among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the
respective issuance dates and as of each subsequent reporting period while the warrants are outstanding.

Revenue Recognition

The Company recognizes revenue in accordance with
FASB ASC Topic No. 606, Revenue from Contracts with Customers (“ASC 606”). Revenues are recognized when control is
transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those
goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer;
(ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the
transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is
satisfied. As part of the accounting for these arrangements, the Company may be required to make significant judgments, including identifying
performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating
the transaction price to each performance obligation.

Revenues from product sales are recorded at the
net sales price, or “transaction price,” which may include estimates of variable consideration that result from product returns.
The Company determines the amount of variable consideration by using either the expected value method or the most-likely-amount method.
The Company includes the unconstrained amount of estimated variable consideration in the transaction price, which reflects the amount
for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting
period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and
if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis
in the period of adjustment. Reserves are established for the estimates of variable consideration based on the amounts the Company expects
to be earned or to be claimed on the related sales.

9

The Company receives the majority of its revenues
from sales of its Arakoda product to resellers in the US and abroad. The Company records US commercial revenues as a receivable when