Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 494

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 494
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 future Royalty payment due to Knight was determined to be an embedded component of the Series A Preferred Stock, however,
is exempt from derivative accounting under the ASC 815 scope exception for specified volumes of sales or service revenues. Therefore,
the Company accrues a royalty expense within cost of sales as sales are made.

Debenture

On April 24, 2019, 60P entered into the Knight
debenture of $3,000,000 with an original issue discount of $2,100,000, which was being amortized using the effective interest method.
The Company subsequently restructured the Knight Loans, including the debenture, pursuant to the Knight Debt Conversion Agreement (see
above). $13,696 of the original issue discount was amortized to interest expense prior to the amendment during the year ended December
31, 2023. The Knight Debt Conversion Agreement in January 2023 was accounted for as an extinguishment of the Debenture, as discussed
above. Therefore, there were no amounts outstanding as of December 31, 2024 or December 31, 2023.

SBA COVID-19 EIDL

On May 14, 2020, the Company received COVID-19
EIDL lending from the Small Business Administration (SBA) in the amount of $150,000. The loan bears interest at an annual rate of 3.75%
calculated on a monthly basis. Monthly payments of $731 were required beginning in November 2022, with a final balloon payment equal
to the remaining principal due at the maturity date of October 12, 2050. The balance as of December 31, 2024 and 2023 is $155,891 and
$159,023, respectively. The current maturity at December 31, 2024 is $8,772 and the long-term liability is $147,119 ($8,772 and $150,251
at December 31, 2023, respectively). The loan is collateralized by all tangible and intangible personal property of the Company. The
Company is prohibited from accepting future advances under any superior liens on the collateral without the prior consent of SBA.

The current future payment obligations of the principal are as follows:

    Period 
    Principal
    Payments 
  
    2025 
    $- 
  
    2026 
     404 
  
    2027 
     3,217 
  
    2028