Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 471

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 471
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 the Company are presented in US dollars, which is the functional currency of the Company and
the presentation currency for the consolidated financial statements.

For the purpose of presenting consolidated financial
statements, the assets and liabilities of the Company’s foreign operations are mostly translated at exchange rates prevailing on
the reporting date. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate
significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising,
if any, are recognized as a component of other comprehensive income (loss) as Unrealized Foreign Currency Translation Gain or Loss.

Exchange rates along with historical rates used
in these financial statements are as follows:

     Average
                                            Exchange Rate

     Year
                                            Ended December 31,   
    As of
  
    Currency 
     2024  
     2023  
    December 31,
    2024 
    December 31,
    2023
  
    1 AUD = 
     0.66 USD  
     0.66 USD  
    0.62 USD 
    0.68 USD

Reclassifications

Certain prior period amounts have been reclassified
for consistency with the current period presentation. These reclassifications had no material effect on the consolidated results of operations
and comprehensive loss, shareholders’ equity, or cash flows.

F-16

Share-Based Payments

On November 22, 2022, the Company adopted the
2022 Equity Incentive Plan also referred to as (“2022 Plan”). The 2022 Plan and related share-based awards are discussed
more fully in Note 10.

The Company accounts for share-based payments
in accordance with ASC Subtopic 718, Compensation - Stock Compensation (“ASC 718”). The Company measures compensation
for all share-based payment awards granted to employees, directors, and nonemployees, based on the estimated fair value of the awards
on the date of grant. For awards that vest based on continued service, the service-based compensation cost is recognized on a straight-line
basis over the requisite service period, which is generally the vesting period of the awards. For service vesting awards with compensation
expense recognized on a straight-line basis, at no point in time does the cumulative grant date value of vested awards exceed the cumulative
amount of compensation expense recognized. The grant date is determined based on the date when a mutual understanding of the key terms
of the share-based