Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 17

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 31, 2024 include the derivative liability associated with the contingent
milestone payment due to Knight upon a future sale of Arakoda or a Change of Control, which is carried at fair value based on Level 3
inputs. The Company uses a probability-weighted expected return method to determine the fair value of the contingent milestone payment
using significant inputs such as the timing and probability of discrete potential exit scenarios, forward interest rate curves, and discount
rates based on implied and market yields. See Note 8 for more information on Derivative Liabilities.

10

Liabilities measured at fair value at March 31,
2025 and December 31, 2024 are as follows:

    March 31, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $-  
    $-  
    $635,725  
    $635,725 
  
    Total 
    $-  
    $-  
    $635,725  
    $635,725 

    December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $-  
    $-  
    $640,830  
    $640,830 
  
    Total 
    $-  
    $-  
    $640,830  
    $640,830 

There were no transfers of financial instruments
between Level 1, Level 2, and Level 3 during the periods presented.

A rollforward of
liabilities measured at fair value using Level 3 inputs for the three months ended March 31, 2025 and 2024 is presented in Note 8 (Derivative
Liabilities). 

Assets and Liabilities Not Measured at Fair Value on a Recurring
Basis

In addition to assets and liabilities that are
measured at fair value on a recurring basis, the Company also measures certain assets and liabilities at fair value on a nonrecurring
basis. The Company’s non-financial assets, including Intangible Assets and Property and Equipment, are measured at fair value when
there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets
are recorded at fair