Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 130

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 130
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 consideration the Company expects to be entitled to receive in exchange for those
goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer;
(ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of
the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation
is satisfied. As part of the accounting for these arrangements, the Company may be required to make significant judgments, including
identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price
and allocating the transaction price to each performance obligation.

Revenues from product sales are recorded at the
net sales price, or “transaction price,” which may include estimates of variable consideration that result from product returns.
The Company determines the amount of variable consideration by using either the expected value method or the most-likely-amount method.
The Company includes the unconstrained amount of estimated variable consideration in the transaction price, which reflects the amount
for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting
period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and
if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis
in the period of adjustment. Reserves are established for the estimates of variable consideration based on the amounts the Company expects
to be earned or to be claimed on the related sales.

The Company receives the majority of its revenues
from sales of its Arakoda™ product to resellers in the US and abroad. The Company records US commercial revenues as a receivable
when our American distributor transfers shipped product to their title model for 60P. Foreign sales to both Australia and Europe are
recognized as a receivable at the point product is shipped to distributor. The shipments to Australia and Europe are further subject
to profit sharing agreements for boxes sold to customers.

Research and Development Costs 

The Company accounts for research and development
costs in accordance with FASB ASC Subtopic No. 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10,
research and development costs are expensed as incurred. Accordingly, internal research and development costs are expensed as incurred.
Prepayments for research and development services are deferred and amort