Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 35

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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5 and
2024, 0 shares of common stock underlying RSUs vested and no RSUs were granted. The Company recognized $0 of compensation expense related
to vested RSUs for the three months ended March 31, 2025 and 2024.

Annual Performance Bonus

In December 2024,
the Board approved the payment of 2024 performance bonuses to executives of the Company. Each executive was provided the option of receiving
up to $20,000 in cash, with the remainder paid in shares of common stock determined based on the closing market price on January 2, 2025.
On January 20, 2025, the Company issued a total of 15,809 shares of common stock to the executives in settlement of the share-based portion
of the 2024 performance bonuses. Approximately 2,748 shares were withheld to cover payroll tax withholdings. 

Share-Based Payments to Vendors for Services

In 2023, the Company issued shares of common stock
as share-based payments to certain vendors in exchange for services to be rendered to the Company in the future. For fully vested, nonforfeitable
equity instruments that are granted at the date the Company and a nonemployee enter into an agreement for goods or services, the Company
recognizes the fair value of the equity instruments as a prepaid asset on the grant date, as defined in ASC 718. The corresponding cost
is expensed over the service period depending on the specific facts and circumstances of the agreement with the nonemployee. As of March
31, 2025, the remaining unamortized balance of prepaid assets related to these share-based payments for which 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