Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 123

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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 Ended March 31,  

    Consolidated Statements of Operations Data: 
    2025  
    2024  
    $ Change  
    % Change 
  
    Product Revenues – net of Discounts and Rebates 
    $163,552  
    $105,674  
    $57,878  
     54.77%
  
    Cost of Revenues 
     73,272  
     65,437  
     7,835  
     11.97 
  
    Gross Profit 
    $90,280  
    $40,237  
    $50,043  
     124.37%
  
    Gross Margin % 
     55.20% 
     38.08% 

Product Revenues - net of Discounts and Rebates

Our product revenues - net of discounts and rebates were $163,552 for
the three months ended March 31, 2025, as compared to $105,674 for the three months ended March 31, 2024. For the three months ended March
31, 2025, our U.S. pharmaceutical distributor and Infuserve America accounted for 85% and 6% of our total net product sales of Arakoda,
respectively, and Kodatef sales to our Australian distributor accounted for 9% of total net product sales (99%, 0%, and 1% for the three
months ended March 31, 2024, respectively). Domestic, commercial product sales are primarily driving increased sales volume during the
period.

We offer discounts and rebates to the civilian
U.S. supply chain distribution channel. We record sales when our 3PL partner transfers boxes into their title model. Discounts and rebates
offered to our 3PL partner amount to 12% (lower rates available upon reaching larger revenue tiers) along with a $5,500 fixed monthly
fee. The product is then transferred usually to one of the three large U.S. pharmaceutical distributors where rebates are 10%. Lastly,
we have relationships with several large pharmacy benefit managers (“PBMs”) that allow patients to purchase Arakoda at a discount.
The rebate associated with PBMs ranges from 30% to 41.25% depending on the amount of coverage provided. For the three months ended March
31, 2025, discounts and rebates were $91,401 compared to $94,869 for the