Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 462

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 462
---
 be established. As of December 31, 2024, the U.S. pharmaceutical distributor accounted for 95% of the accounts receivable
balance (79% as of December 31, 2023) and the U.S. government accounted for none of the outstanding accounts receivable balance (13%
as of December 31, 2023).

Inventory

Inventories are stated at the lower of cost or
net realizable value. Cost is comprised of direct materials and, where applicable, costs that have been incurred in bringing the inventories
to their present location and condition. The Company uses the Specific Identification method per lot. A box price is calculated per lot
number and sales are recognized by their lot number.

The Company regularly monitors its inventory
levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value, and records write-downs
for inventory that has expired, inventory that has a cost basis in excess of its expected net realizable value, and inventory in excess
of expected sales requirements. Any write-downs of inventories are charged to Cost of Revenues in the Consolidated Statements of Operations
and Comprehensive Loss. During the year ended December 31, 2024, write-downs for expired inventory totaled $22,046 ($191,111 for the
year ended December 31, 2023).

F-11

Property and Equipment

Property and equipment are stated at cost. Normal
repairs and maintenance costs are charged to earnings as incurred and additions and major improvements are capitalized. The cost of assets
retired or otherwise disposed of and the related depreciation are eliminated from the accounts in the period of disposal and the resulting
gain or loss is credited or charged to earnings.

Depreciation is computed over the estimated useful
lives of the related asset type or term of the operating lease using the straight-line method for financial statement purposes. The estimated
service lives for Property and Equipment is either three (3), five (5) or seven (7) years.

Impairment of Long-lived Assets

Long-lived assets, such as property and equipment
and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The Company monitors for potential indicators of a trigger event
for asset impairment, including whether there is an adverse change in the extent or manner in which an asset is being used or its physical
condition. Assets