Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1480

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 6
Chunk 1480
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2023 there were no amounts
outstanding under the Note.

Convertible Promissory Notes and Warrants

During May 2022 and May 2023 (the “2022
Bridge Notes” and “2023 Bridge Notes,” respectively), the Company executed promissory notes with various investors.
The notes were due at the earlier of one year from the issuance date or the closing of an IPO. In connection with the issuance of the
2022 and 2023 Bridge Notes, the Company agreed to issue common stock to each noteholder equivalent to 100% of the face amount of the
note divided by the IPO price per share. Additionally, each of these note holders received five-year (5) fully vested warrants upon the
closing of the IPO, with an exercise price of 110% of the IPO price.

The Company performed an evaluation of the conversion
features embedded in the Bridge Notes and the warrants and concluded that such instruments qualified for treatment as derivative liabilities
under ASC 815 and required bifurcation from the host contract. Derivative liabilities are carried at fair value at each balance sheet
date, and any changes in fair value are recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss.
See Note 8 for further details.

F-24

As a result of the completion of the IPO and
as required under the terms of the 2022 and 2023 Bridge Notes, the Company issued the holders 5,071 shares of common stock, determined
by the outstanding principal balance of each note divided by the IPO price. In addition, the Company made cash payments to the holders
of the 2022 and 2023 Bridge Notes totaling $1,749,488 in full settlement of the outstanding debt obligations. The embedded derivative
liability (conversion feature) was marked to market on the settlement date, and the Company recognized a debt extinguishment loss of
$614,670 upon settlement, representing the difference between (i) the reacquisition price, consisting of cash and shares, and (ii) the
net carrying value of the debt including associated derivative liabilities on the date of conversion. As such, as of December 31, 2024
and 2023 there were no amounts outstanding under the 2022 and 2023 Bridge Notes.

Related Party Notes

During May 2022, the Company executed convertible
promissory notes with the Company’s Chief Executive Officer and a family member related to the Chief Executive Officer. The notes
were initially due