Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1141

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1141
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 maintenance,
property taxes and insurance are expensed as incurred.

The Company determines if an arrangement is a
lease at contract inception. The Company’s contracts are determined to contain a lease when all of the following criteria, based
on the specific circumstances of the arrangement, are met: (1) there is an identified asset for which there are no substantive substitution
rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company
has the right to direct the use of the identified asset.

At the commencement date, operating lease liabilities
and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease
term. The Company’s lease agreement does not provide an implicit rate. As a result, the Company utilizes an estimated incremental
borrowing rate (“IBR”), to discount lease payments, which represents the rate of interest the Company would pay to borrow,
on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.

F-17

Net Loss per Common Share

Net Loss per Common Share is computed by dividing
net loss attributable to common shareholders by the weighted average number of common shares outstanding during each period. The Company
has included the Pre-Funded Warrants issued in January 2024 and September 2024 (See Note 6) in its computation of basic and diluted net
loss per share due to their nominal exercise prices. The cumulative dividends accrued on the Series A Preferred Stock during the period
are reflected as an addition to net loss in determining basic and diluted net loss attributable to common stockholders.

As the Company has reported a net loss for all
periods presented, the calculation of diluted net loss per common share is the same as basic net loss per common share for those periods.

As a result of the Reverse Stock Splits, which
were effective as of August 12, 2024 at a ratio of 1:12 and February 24, 2025 at a ratio of 1:5, all shares of outstanding common stock
and net loss per common share calculations have been retroactively adjusted for all periods presented.

Related Parties

Parties are considered to be related to the Company
if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with
the Company. Related parties also include principal owners of the Company, its management, members of the immediate