Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 14

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
 to make key operating decisions.
The information and operating expense categories presented in the accompanying Consolidated Condensed Statements of Operations and Comprehensive
(Loss) Income are fully reflective of the significant expense categories and amounts that are regularly provided to the CODM.

8

The measure of segment assets that is regularly
reported to the CODM includes cash and cash equivalents and short-term investments, each as reported on the Consolidated Balance Sheets.
Total consolidated cash and cash equivalents and short-term investments were $3,451,500 and $3,387,825 as of March 31, 2025 and December
31, 2024, respectively.

Derivative Liabilities

The Company analyzes all financial instruments
with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities from Equity (“ASC 480”),
and FASB ASC Topic No. 815, Derivatives and Hedging (“ASC 815”). The classification of derivative financial instruments
is reassessed each reporting period. Derivative liabilities are adjusted to reflect fair value at each reporting period, with any increase
or decrease in the fair value recorded in the results of operations, as a component of other income or expense as change in fair value
of derivative liabilities. As of March 31, 2025, derivative liabilities consist of contingent payment arrangements. The Company uses a
probability-weighted expected return method to determine the fair value of these instruments.

Upon conversion or repayment of a debt or equity
instrument in exchange for equity shares, where the embedded conversion option has been bifurcated and accounted for as a derivative liability
(generally convertible debt and warrants), the Company records the equity shares at fair value on the date of conversion, relieves all
related debt, derivative liabilities, and unamortized debt discounts, and recognizes a net gain or loss on debt extinguishment, if any.

Equity or liability instruments that become subject
to reclassification under ASC Topic 815 are reclassified at the fair value of the instrument on the reclassification date.

Equity-Classified Warrants

As of March 31, 2025, the Company accounts for
all outstanding warrants to purchase common stock as equity-classified instruments based on an assessment of the warrants’ specific
terms and applicable authoritative guidance in ASC 480 and ASC 815. This assessment considers whether the warrants are freestanding financial
instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, whether the