Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 109

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 the grant date criteria
has been met and the services are expected to be rendered within one year is $306,181 ($306,181 at December 31, 2024), which is presented
as a component of Prepaid and Other Assets on the accompanying Consolidated Condensed Balance Sheets. The unamortized balance of noncurrent
prepaid assets related to these share-based payments for which the services are expected to be rendered beyond one year is $22,059 ($66,176
at December 31, 2024), reported in Long-Term Prepaid Expense on the accompanying Consolidated Condensed Balance Sheets.

The agreements with the nonemployees do not include
any provisions to claw back the share-based payments in the event of nonperformance by the nonemployees. Subject to applicable federal
and state securities laws, the nonemployees can sell the received equity instruments.

21

11. COMMITMENTS AND CONTINGENCIES

Leases

The Company is a party to a single lease for its
office space located in Washington, DC, which was most recently renewed for an additional one-year term that expires March 31, 2026. As
the term of the office lease is 12 months, the lease is not recorded on the balance sheet. The Company recognizes lease expense on this
lease as short-term lease costs. Operating lease costs, including short-term leases, were in the amount of $4,967 and $14,053 for the
three months ended March 31, 2025, and March 31, 2024, respectively.

Board of Directors

In November and December 2022, the Company signed
agreements with four director nominees (Cheryl Xu, Paul Field, Charles Allen, and Stephen Toovey) which came into effect on July 11, 2023,
the date the Company’s Registration Statement was declared effective. Each director is entitled to receive cash compensation of
$11,250 quarterly. In addition, the two non-audit committee chairs (Toovey, Field) will receive $1,250 per quarter and the audit committee
chair (Allen) will receive an additional $2,000 per quarter. In addition, each director is entitled to receive annual equity-based compensation
awards, with the amounts and terms to be determined by the Compensation Committee.

Contingencies

The Company’s operations are subject to
a variety of local and state regulations. Failure to comply with one or more of those regulations could result in fines, restrictions
on its