Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1177

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1177
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% of Net
Sales greater than $35 million, with US government sales excluded from the definition of Net Sales. In addition, the Company must pay
fees upon the achievement of certain milestones, including a sales-based milestone fee of $75,000 once cumulative Net Sales from all
sources exceeds $6 million. The Company accrues the minimum annual royalty when the related sales occur. The Company achieved the sales-based
milestone target during the year ended December 31, 2023, which was paid in full on June 13, 2024. As of December 31, 2023, the Company
had accrued a liability of $75,000 for the related payment, which is reflected in Accounts Payable and Accrued Expenses on the accompanying
Consolidated Balance Sheets. The achievement of other milestones under the U.S. Army Agreement are not considered probable and thus no
accruals for the related milestone payments have been made.

F-35

On December 20, 2024, the Company entered into
a Patent License Agreement with Tufts Medical Center (“Tufts MC”), in which the Company obtained a license to research and
commercialize the licensed technology with respect the use of tafenoquine for treatment and/or prevention of babesiosis (the “Tufts
MC Agreement”). The term of the Tufts MC Agreement will continue until the expiration or final abandonment of the last patent application
or issued patent for the use of tafenoquine for treatment and/or prevention of babesiosis, unless terminated earlier by the parties.
On the earlier of (x) the date of patent issuance or (y) the date of regulatory approval for the use of tafenoquine product in treatment
of babesiosis, the Company must make royalty payments equal to 4% of Net Sales (as defined in the Tufts MC Agreement) for tafenoquine
sold in a format labeled for use in the treatment of babesiosis or 2% of Net Sales for 60P products that are not sold in a format labeled
for use in the treatment of babesiosis. In addition, for all sublicense revenue received by 60P from sales of sublicensed products, the
Company must make royalty payments equal to 20% of the revenue received by the Company for sales of tafenoquine sold in a format labeled
for use in the treatment of babesiosis or 10% for sales of tafenoquine that are not sold in a format labeled for use in the treatment