Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 93

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 93
---
 time commensurate with the expected term assumption. The Company generally uses the simplified
method as prescribed by the SEC Staff Accounting Bulletin Topic 14, Share-Based Payment, to estimate the expected term for stock
options, whereby, the expected term equals the midpoint of the weighted average remaining time to vest, vesting period and the contractual
term of the options due to its lack of historical exercise data. For certain options granted out-of-the-money, the Company’s best
estimate of the expected term is the contractual term of the award. The risk-free interest rate is based on U.S. Treasury securities with
a maturity date commensurate with the expected term of the associated award. The expected dividend yield is assumed to be zero as the
Company has never paid dividends and has no current plans to pay any dividends on its common stock. The assumptions used in calculating
the fair value of share-based awards represent management’s best estimates and involve inherent uncertainties and the application
of significant judgment.

Compensation expense for restricted stock units
(“RSUs”) with only service-based vesting conditions is recognized on a straight-line basis over the vesting period. Compensation
cost for service-based RSUs is based on the grant date fair value of the award, which is the closing market price of the Company’s
common stock on the grant date multiplied by the number of shares awarded.

For awards that vest upon a liquidity event or
a change in control, the performance condition is not probable of being achieved until the event occurs. As a result, no compensation
expense is recognized until the performance-based vesting condition is achieved, at which time the cumulative compensation expense is
recognized. Compensation cost related to any remaining time-based service for share-based awards after the liquidity-based event is recognized
on a straight-line basis over the remaining service period.

For fully vested,
nonforfeitable equity instruments that are granted at the date the Company and a nonemployee enter into an agreement for goods or services,
the Company recognizes the fair value of the equity instruments on the grant date. The corresponding cost is recognized as an immediate
expense or a prepaid asset and expensed over the service period depending on the specific facts and circumstances of the agreement with
the nonemployee. See Note 10 for further details. 

12

Net (Loss) Income per Common Share

Net (Loss) Income per Common Share is computed
by dividing net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding during each
period. The Company includes