Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 320

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 320
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), into a note for the principal
amount of $6,309,823 and accrued interest of $4,160,918 and a debenture of $3,483,851 (collectively, the ‘Knight Loan’).
The Knight Loan had a maturity date of December 31, 2023. The principal and accrued interest portion of the Knight Loan bore an annual
interest rate of 15%, compounded quarterly, whereas the debenture had a 9% interest rate until April 23, 2023 at which point interest
ceased accruing. In January 2023, the Company and Knight executed the Knight Debt Conversion Agreement, pursuant to which the parties
agreed to add a conversion feature to the cumulative outstanding Knight Loans, which was accounted for as a debt extinguishment, described
further below.

Note, including Amendment

The Company executed a promissory note (the “Note”)
with an individual investor on October 11, 2017, later amended on December 11, 2022 (the “Amendment”). The Note, including
the Amendment was set to mature 60 days after the Knight Loans were repaid, and contained a provision to automatically convert the outstanding
principal and accumulated interest through March 31, 2022 into common shares in the event the Company consummated an IPO. Amortization
of the discount on the Note, including the Amendment for the years ended December 31, 2024 and 2023 was $0 and $52,628, respectively.
Interest expense related to the Note, including the Amendment, for the years ended December 31, 2024 and 2023 was $0 and $66,558, respectively.

As a result of the completion of the IPO and
as required under the terms of the Note, including the Amendment, the outstanding principal and accrued interest through March 31, 2022
converted to 3,583 shares of our common stock at a conversion rate equal to the IPO price, in full satisfaction of the outstanding debt
obligation. The Company recognized a debt extinguishment gain of $223,077 upon conversion, representing the difference between (i) the
reacquisition price, consisting of the fair value of the common shares issued, and (ii) the net carrying value of the debt, inclusive
of unamortized discounts and issuance costs, on the date of conversion. As a result, as of December 31, 2024 and 2023