Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 176

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 liabilities are adjusted to reflect fair value at each reporting period, with any increase or decrease in
the fair value recorded in the results of operations (other income/expense) as change in fair value of derivative liabilities. As of March
31, 2025, derivative liabilities consist of contingent payment arrangements. We use a probability-weighted expected return method to determine
the fair value of these instruments.

Upon conversion or repayment of a debt or equity
instrument in exchange for equity shares, where the embedded conversion option has been bifurcated and accounted for as a derivative liability
(generally convertible debt and warrants), we record the equity shares at fair value on the date of conversion, relieve all related debt,
derivative liabilities, and unamortized debt discounts, and recognize a net gain or loss on debt extinguishment, if any.

Equity or liability instruments that become subject
to reclassification under ASC Topic 815 are reclassified at the fair value of the instrument on the reclassification date.

Off-Balance Sheet Arrangements

During 2025 and 2024, we did not have any relationships
with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been
established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

JOBS Act Accounting Election

In April 2012, the JOBS Act was enacted. Section
107(b) of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Thus, an emerging growth company can
delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to
avail ourselves of this exemption and, therefore, we will not be subject to the same new or revised accounting standards as other public
companies that are not emerging growth companies.

Recent Accounting Pronouncements

From time to time, the FASB issues Accounting
Standards Updates (“ASU”) to amend the authoritative literature in the ASC. The Company regularly evaluates new ASUs to determine
the impact that these pronouncements may have on the consolidated condensed financial statements. Other than the pronouncements listed
below, management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, or (iii)
are not applicable to the Company’s consolidated condensed financial statements or related