Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 90

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 fair value due to the short-term nature of such instruments.

The inputs used to measure fair value are based
on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to
lowest priority, are described below:

    Level 1
    -
    Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

    Level 2
    -
    Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

    Level 3
    -
    Unobservable inputs reflecting the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

The Company’s financial instruments recorded
at fair value on a recurring basis at March 31, 2025 and December 31, 2024 include the derivative liability associated with the contingent
milestone payment due to Knight upon a future sale of Arakoda or a Change of Control, which is carried at fair value based on Level 3
inputs. The Company uses a probability-weighted expected return method to determine the fair value of the contingent milestone payment
using significant inputs such as the timing and probability of discrete potential exit scenarios, forward interest rate curves, and discount
rates based on implied and market yields. See Note 8 for more information on Derivative Liabilities.

10

Liabilities measured at fair value at March 31,
2025 and December 31, 2024 are as follows:

    March 31, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $-  
    $-  
    $635,725  
    $635,725 
  
    Total 
    $-  
    $-  
    $635,725  
    $635,725 

    December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Derivative Liabilities 
    $-  
    $-  
    $640,830  
    $640,830 
  
    Total 
    $-  
    $-  
    $640,830  
    $640,830 

There were no transfers of financial instruments
between Level