Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1914

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 1914
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 completion of the IPO and
as required under the terms of the Note, including the Amendment, the outstanding principal and accrued interest through March 31, 2022
converted to 3,583 shares of our common stock at a conversion rate equal to the IPO price, in full satisfaction of the outstanding debt
obligation. The Company recognized a debt extinguishment gain of $223,077 upon conversion, representing the difference between (i) the
reacquisition price, consisting of the fair value of the common shares issued, and (ii) the net carrying value of the debt, inclusive
of unamortized discounts and issuance costs, on the date of conversion. As a result, as of December 31, 2024 and 2023 there were no amounts
outstanding under the Note.

Convertible Promissory Notes and Warrants

During May 2022 and May 2023 (the “2022
Bridge Notes” and “2023 Bridge Notes,” respectively), the Company executed promissory notes with various investors.
The notes were due at the earlier of one year from the issuance date or the closing of an IPO. In connection with the issuance of the
2022 and 2023 Bridge Notes, the Company agreed to issue common stock to each noteholder equivalent to 100% of the face amount of the
note divided by the IPO price per share. Additionally, each of these note holders received five-year (5) fully vested warrants upon the
closing of the IPO, with an exercise price of 110% of the IPO price.

The Company performed an evaluation of the conversion
features embedded in the Bridge Notes and the warrants and concluded that such instruments qualified for treatment as derivative liabilities
under ASC 815 and required bifurcation from the host contract. Derivative liabilities are carried at fair value at each balance sheet
date, and any changes in fair value are recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss.
See Note 8 for further details.

F-24

As a result of the completion of the IPO and
as required under the terms of the 2022 and 2023 Bridge Notes, the Company issued the holders 5,071 shares of common stock, determined
by the outstanding principal balance of each note divided by the IPO price. In addition, the Company made cash payments to the holders
of the 2022 and 2023 Bridge Notes totaling $1,749,488 in full settlement of the outstanding debt obligations. The embedded