Company: SXTPW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003343
Chunk: 965

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 965
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 associated with the asset.

Intangible Assets

The Company capitalizes its patent and filing
fees and legal patent and prosecution fees in connection with internally developed pending patents. When pending patents are issued,
patents will be amortized over the expected period to be benefitted, not to exceed the patent lives, which may be as long as ten to fifteen
years.

Website Development Costs

The Company accounts for website development
costs in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Subtopic No. 350-50, Website Development Costs. Accordingly, all costs incurred in the planning stage are expensed as incurred,
costs incurred in the website application and infrastructure development stage that meet specific criteria are capitalized and costs
incurred in the day-to-day operation of the website are expensed as incurred. All costs associated with the websites are subject to straight-line
amortization over a three-year period. 

Gain or Loss on Debt Extinguishment

Gain or loss on debt extinguishment is generally
recorded upon an extinguishment of a debt instrument or the conversion of certain of the Company’s convertible debt determined
to have variable share settlement features. Gain or loss on extinguishment of debt is calculated as the difference between the reacquisition
price and net carrying amount of the debt, which includes unamortized debt issuance costs and the fair value of any related derivative
instruments. In the case of debt instruments for which the fair value option has been elected, the net carrying value is equal to its
fair value on the date of extinguishment and no gain or loss is recognized.

Derivative Liabilities

The Company assesses the classification of its
derivative financial instruments each reporting period, which formerly consisted of bridge shares, convertible notes payable, and certain
warrants, and determined that such instruments initially qualified for treatment as derivative liabilities as they met the criteria for
liability classification under ASC 815. As of December 31, 2024, the Company’s derivative financial instruments consist of contingent
payment arrangements.

F-12

The Company analyzes all financial instruments
with features of both liabilities and equity under FASB ASC Topic No. 480, Distinguishing Liabilities from Equity (“ASC
480”), and FASB ASC Topic No. 815, Derivatives and Hedging (“ASC 815”). Derivative liabilities are adjusted
to reflect fair value at each reporting period, with any increase or decrease in the fair value