Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 1140

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 1140
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 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.

Leases

The Company applies ASC Topic 842, Leases
(“ASC 842”) to its operating leases, which are reflected on the consolidated balance sheets within Right of Use (ROU)
Asset and the related current and non-current operating Lease Liability. ROU assets represent the right to use an underlying asset for
the lease term, and lease liabilities represent the obligation to make lease payments arising from lease agreements. Leases with an initial
term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over
the lease term, subject to any changes in the lease or expectation regarding the terms. Variable lease costs such as common area