Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1132

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1132
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ability (generally convertible debt and warrants), the Company records the equity shares at fair value on the date of conversion, relieves
all related debt, derivative liabilities, and unamortized debt discounts, and recognizes 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.

Equity-Classified Warrants

As of December 31, 2024, the Company accounts
for all outstanding warrants to purchase common stock as equity-classified instruments based on an assessment of the warrants’
specific terms and applicable authoritative guidance in ASC 480 and ASC 815. This assessment considers whether the warrants are freestanding
financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, whether the warrants meet all of the
requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock
and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s
control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted
at the respective issuance dates and as of each subsequent reporting period while the warrants are outstanding.

IPO and Over-Allotment

The Over-Allotment option granted to the underwriters
in connection with the IPO was evaluated in accordance with the guidance in ASC 480 and ASC 815 and was determined to meet all of the
criteria for equity classification. The Company allocated the proceeds from the sale of the IPO units (net of offering costs paid at
closing and deferred offering costs incurred prior to the IPO) between the common stock, the Tradeable Warrants, the Non-tradeable Warrants,
and the Over-Allotment, using the relative fair value method.

Original Issue Discount (“OID”)

For certain notes issued, the Company may from
time to time provide the debt holder with an original issue discount. The original issue discount, if any, is recorded as a debt discount
and is amortized to interest expense using the effective interest method over the life of the debt in the Consolidated Statements of
Operations and Comprehensive Loss.

Debt Issuance Costs

Debt issuance costs paid to lenders, or third
parties are recorded as debt discounts and amortized to interest expense over the life of the underlying debt instrument, in the Consolid