Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 258

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 258
---
 $ Change  
    % Change 
  
    Product Revenues – net of Discounts and Rebates 
    $607,574  
    $253,573  
    $354,001  
     139.61%
  
    Cost of Revenues 
     384,765  
     474,550  
     (89,785) 
     (18.92)
  
    Gross Profit (Loss) 
    $222,809  
    $(220,977) 
    $443,786  
     (200.83)%
  
    Gross Margin % 
     36.67% 
     (87.15)% 

Product Revenues - net of Discounts and Rebates

Our product revenues - net of discounts and rebates
were $607,574 for the year ended December 31, 2024, as compared to $253,573 for the year ended December 31, 2023. For the year ended
December 31, 2024, our U.S. pharmaceutical distributor accounted for 95% of our total net product sales and Kodatef sales to our Australian
distributor accounted for 5% of total net product sales (72% and 21% for the year ended December 31, 2023, respectively). Domestic commercial
product sales are primarily driving increased sales volume during the period.

49

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 that started in 2023. 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
year ended December 31, 2024, discounts and rebates were $476,218 compared to $216,031 for the year ended December 31, 2023.

Arakoda entered the U.S. civilian supply chain
in the third quarter of 2019. For the year