Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 124

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 124
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as the Company has the intent and ability to hold these investments until they mature. The classification of short-term investments is
determined at the time of purchase and is reevaluated at each balance sheet date. Short-term investments are reported at amortized cost.

Accounts Receivable and Allowance for Doubtful Accounts

The Company records accounts receivable at net
realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on
the trade accounts receivable balances and charged to the provision for doubtful accounts. Based on the Company’s history there
has been no need to make a recording to Allowance for Doubtful Accounts. Most of the Company’s revenue has been earned via government
contracts, an Australian pharmaceutical distributor and a large American pharmaceutical distributor. There was no allowance as of December
31, 2024 and December 31, 2023. As the Company continues to engage with smaller distributors, it will continue to analyze whether an
allowance should be established. As of December 31, 2024, the U.S. pharmaceutical distributor accounted for 95% of the accounts receivable
balance (79% as of December 31, 2023) and the U.S. government accounted for none of the outstanding accounts receivable balance (13%
as of December 31, 2023).

Inventory

Inventories are stated at the lower of cost or
net realizable value. Cost is comprised of direct materials and, where applicable, costs that have been incurred in bringing the inventories
to their present location and condition. The Company uses the Specific Identification method per lot. A box price is calculated per lot
number and sales are recognized by their lot number.

The Company regularly monitors its inventory
levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value, and records write-downs
for inventory that has expired, inventory that has a cost basis in excess of its expected net realizable value, and inventory in excess
of expected sales requirements. Any write-downs of inventories are charged to Cost of Revenues in the Consolidated Statements of Operations
and Comprehensive Loss. During the year ended December 31, 2024, write-downs for expired inventory totaled $22,046 ($191,111 for the
year ended December 31, 2023).

F-11

Property and Equipment

Property and equipment are stated at cost. Normal
repairs and maintenance costs are charged to earnings