Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 292

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 292
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 accompanying consolidated financial statements pursuant to the instructions to Form 10-K and Article 8 of Regulation
S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments considered necessary
for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of
a normal and recurring nature.

Principles of Consolidation and Noncontrolling Interest

The Company’s consolidated financial statements
include the financial statements of its majority owned subsidiary 60P Australia Pty Ltd. All significant intercompany accounts and transactions
have been eliminated in consolidation.

On August 2, 2023, Geoffrey Dow assigned his
interest in 60P Australia Pty Ltd, of 904,436 common shares of 60P Australia Ltd, to the Company for no consideration, thereby increasing
the proportional ownership of 60P, Inc. in 60P Australia Pty Ltd from 87.53% to 96.61%. The purpose of this assignment was to eliminate
the related party conflict associated with Geoffrey Dow’s ultimate beneficial ownership in 60P Australia Pty Ltd being greater
than that of other 60P, Inc. shareholders. The increase in the Company’s proportional interest is reflected as a Contribution from
Noncontrolling Interest in the Consolidated Statements of Shareholders’ Equity.

For entities that are consolidated, but not 100%
owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income
or loss and corresponding equity that is not owned by us is included in Noncontrolling Interest in the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates, and those estimates may be material. Significant estimates include
the reserve for inventory, the fair value of derivative liabilities, and stock-based compensation.

Reverse Stock Splits

Following stockholder approval in July 2024,
the Company effected a reverse stock split at a ratio of 1:12 (the “1:12 Reverse Stock Split”), which was effective as of
August 12, 2024. Following stockholder approval in November 2024, the Company effected an additional reverse stock split at a ratio of
1:5 (