Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 173

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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stock and warrant offerings completed in January 2025 and February 2025. We also received lower proceeds from the exercise of warrants
at $1,926 for the three months ended March 31, 2025, compared to $4,995 for the three months ended March 31, 2024. Additionally, for the
three months ended March 31, 2025, we withheld shares valued at $18,000 to cover tax withholdings for net share settlement of certain
2024 performance bonuses awarded to our executives ($0 for the three months ended March 31, 2024).

Effect of Foreign Currency Translation on Cash

Our foreign operations were small relative to
U.S. operations for the three months ended March 31, 2025 and March 31, 2024, thus effects of foreign currency translation have been minor.

Critical Accounting Policies, Significant Judgments,
and Use of Estimates

The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.

Revenue Recognition 

We recognize revenue in accordance with FASB ASC
Topic No. 606, Revenue from Contracts with Customers (“ASC 606”). Revenues are recognized when control is transferred
to customers in amounts that reflect the consideration we expect to be entitled to receive in exchange for those goods. Revenue recognition
is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification
of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price
to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. As part
of the accounting for these arrangements, we may be required to make significant judgments, including identifying performance obligations
in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price
to each performance obligation.

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Revenues from product sales are recorded at the
net sales price, or “transaction price,” which may include estimates of variable consideration that result from product returns.
We determine the amount of variable consideration by using either the expected value method or the most-likely-amount method. We include
the unconstrained amount of