Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 264

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 264
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 Extinguishment

For the year ended December 31, 2024, we did
not recognize a gain or loss on debt extinguishment ($1,231,480 loss recognized during the year ended December 31, 2023). The decrease
is related, in part to the conversion of the cumulative outstanding debt pursuant to the Knight Debt Conversion Agreement in January
2023, which was accounted for as a debt extinguishment, as well as losses recognized upon extinguishment of our interim bridge financing
notes, all of which were settled or converted upon our IPO in July 2023. The net amount for the year ended December 31, 2023 was partially
offset by a debt extinguishment gain of $223,077 recognized on conversion of the Xu Yu promissory note on the date of our IPO.

Change in Fair Value of Promissory Note

For the year ended December 31, 2023, we recognized
a net gain of $5,379,269 related to the change in the fair value of the Convertible Knight Loan, which was held at fair value beginning
on the modification date in January 2023. The gain relates to the mark to market adjustment recognized immediately prior to the automatic
conversion of the outstanding debt obligation into our equity shares upon the closing of our IPO. We no longer have any debt obligations
measured at fair value on a recurring basis, hence we recorded a $0 change in fair value for the year ended December 31, 2024.

Other Income (Expense), net

For the year ended December 31, 2024, we recognized
$101,464 in other income compared to $83,116 in other expense for the year ended December 31, 2023. As a result of the IPO as well as
additional equity financing transactions completed in 2024, we have earned higher interest income from investing certain cash proceeds
in interest-bearing accounts and short-term certificates of deposit. We recognized interest income of $103,299 during the year ended
December 31, 2024 ($19,985 during the year ended December 31, 2023). Additionally, during the year ended December 31, 2024, we recognized
$10,789 in service revenue in association with the final payment from the USAMMDA for storing Arakoda purchases ($0 for the year ended
December 31, 2023), upon the final resolution of storage fees payable from the USAMMDA under the