Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 327

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 327
---

    Payments 
  
    2025 
    $- 
  
    2026 
     404 
  
    2027 
     3,217 
  
    2028 
     3,332 
  
    2029 
     3,467 
  
    Thereafter 
     139,580 
  
    Total 
    $150,000 

F-27

Related Party Advances

In March 2023, the Company received a $200,000
short term advance from the Geoffrey S. Dow Revocable Trust. In April 2023, the Company received $50,000 as a short-term advance from
management. The Geoffrey S. Dow Revocable Trust contributed $23,000 and Tyrone Miller contributed $27,000. On May 11, 2023, these short
term advances were refunded in full for an aggregate amount of $250,000.

8. DERIVATIVE LIABILITIES

In accordance with the provisions of ASC 815,
derivative liabilities are initially measured at fair value at the commitment date and subsequently remeasured at each reporting period,
with any increase or decrease in the fair value recorded in the results of operations within other income/expense as the change in fair
value of derivative liabilities. 

As discussed in Notes 6 and 7 above, certain
of the Company’s bridge shares, warrants and convertible notes (containing an embedded conversion feature) were previously accounted
for as derivative liabilities. The bridge shares and related conversion features were derecognized upon conversion of the related debt
obligations on the date of the IPO. In addition, certain of the Company’s common stock warrants were previously accounted for as
derivative liabilities as there was an unknown exercise price and number of shares associated with each instrument. In connection with
the IPO, the terms of these warrants became fixed, at which point the Company determined the warrants met all of the criteria for equity
classification and reclassified the warrants to additional paid-in capital at their fair value on the IPO date.

As of December 31, 2024, derivative liabilities
consist of the contingent milestone payment due to Knight upon a future sale of Arakoda™ or a Change of Control (See Note 7). The
valuation of the contingent milestone payment includes 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.

In connection with the valuation