Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 800

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 800
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net of offering costs paid at
closing and deferred offering costs incurred prior to the IPO) between the common stock, the Tradeable Warrants, the Non-tradeable Warrants,
and the Over-Allotment, using the relative fair value method.

Original Issue Discount (“OID”)

For certain notes issued, the Company may from
time to time provide the debt holder with an original issue discount. The original issue discount, if any, is recorded as a debt discount
and is amortized to interest expense using the effective interest method over the life of the debt in the Consolidated Statements of
Operations and Comprehensive Loss.

Debt Issuance Costs

Debt issuance costs paid to lenders, or third
parties are recorded as debt discounts and amortized to interest expense over the life of the underlying debt instrument, in the Consolidated
Statements of Operations and Comprehensive Loss, with the exception of certain debt for which we elect the fair value option. Debt issuance
costs associated with debt for which the fair value option is elected are expensed as incurred. 

Income Taxes

60 Degrees Pharmaceuticals, Inc. is a corporation
for U.S. Federal and state income tax purposes. The tax years that remain subject to examination by major tax jurisdictions include the
years ended December 31, 2021, 2022, 2023, and 2024. 60P Australia Pty Ltd. is subject to taxation by the Australian Taxation Office.

F-13

Management assesses, on a jurisdictional basis,
the available means of recovering deferred tax assets, including the ability to carry-back net operating losses, the existence of reversing
temporary differences, the availability of tax planning strategies and available sources of future taxable income. On the basis of this
evaluation, the Company has determined that it is not more likely than not that the Company will recognize the benefits of its net deferred
tax assets, and, as a result, a full valuation allowance has been recorded against its net deferred tax assets as of December 31, 2024
and December 31, 2023.

During the ordinary course of business, there
are many transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related
uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when
the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable.
The Company adjusts these reserves in light of