Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 87

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 the development and marketing of new medicines for the treatment and
prevention of infectious diseases. The determination of a single business segment is consistent with the consolidated financial information
regularly provided to the Company’s chief operating decision maker (“CODM”).

The Company’s CODM is its Chief Executive
Officer, who reviews and evaluates consolidated net income or loss for purposes of evaluating performance, making operating decisions,
allocating resources, and planning and forecasting for future periods. The significant components of consolidated net income or loss regularly
provided to the CODM include net product revenues and the significant expense categories presented in the accompanying Consolidated Condensed
Statements of Operations and Comprehensive (Loss) Income (cost of revenues, research and development, and general and administrative expenses).
These are presented at the consolidated level and used by the CODM to monitor budgeted versus actual results to make key operating decisions.
The information and operating expense categories presented in the accompanying Consolidated Condensed Statements of Operations and Comprehensive
(Loss) Income are fully reflective of the significant expense categories and amounts that are regularly provided to the CODM.

8

The measure of segment assets that is regularly
reported to the CODM includes cash and cash equivalents and short-term investments, each as reported on the Consolidated Balance Sheets.
Total consolidated cash and cash equivalents and short-term investments were $3,451,500 and $3,387,825 as of March 31, 2025 and December
31, 2024, respectively.

Derivative Liabilities

The Company analyzes all financial instruments
with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities from Equity (“ASC 480”),
and FASB ASC Topic No. 815, Derivatives and Hedging (“ASC 815”). The classification of derivative financial instruments
is reassessed each reporting period. Derivative 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, as a component of other income or expense as change in fair value
of derivative liabilities. As of March 31, 2025, derivative liabilities consist of contingent payment arrangements. The Company uses 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), the Company