60 Degrees Pharmaceuticals(US:SXTP)2025-11-13 18:31Revenue Performance - Product revenues for the three months ended September 30, 2025, were $437,602, compared to $135,293 for the same period in 2024, representing an increase of 224%[175] - For the nine months ended September 30, 2025, product revenues reached $702,086, up from $365,939 in 2024, indicating a growth of 92%[175] - Research revenues increased to $90,960 for the three months ended September 30, 2025, from $12,818 in 2024, marking a 609.63% increase[184] - Product revenues for the nine months ended September 30, 2025, reached $702,086, a 91.86% increase from $365,939 in the same period of 2024[195] - Research revenues surged to $390,630 for the nine months ended September 30, 2025, an increase of 804.72% from $43,177 in 2024, primarily due to a new USAMMDA contract[202] Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $4,115,779, a decrease from $1,659,353 as of December 31, 2024[160] - The company raised approximately $4,281,300 in net proceeds from the July 2025 Offering, which closed on July 16, 2025[156] - Cash and cash equivalents increased by 112.09% to $2,456,426 for the nine months ended September 30, 2025, compared to $1,158,203 in 2024[212] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $2,316,397, a 7.48% increase from $2,155,116 in 2024[186] - General and administrative expenses rose by 24.00% to $1,506,620 for the three months ended September 30, 2025, from $1,215,053 in 2024[189] - Operating expenses decreased by 19.50% to $6,272,931 for the nine months ended September 30, 2025, compared to $7,792,318 in 2024[203] Profitability and Loss - The cost of revenues for the three months ended September 30, 2025, was $537,690, compared to $111,687 in 2024, resulting in a gross loss of $100,088[175] - Gross profit for the nine months ended September 30, 2025, was $41,073, down 58.62% from $99,251 in 2024, resulting in a gross margin decrease from 27.12% to 5.85%[195][201] - The company recognized a loss of $156,445 on the change in fair value of derivative liabilities for the nine months ended September 30, 2025, compared to a gain of $1,683,034 in 2024[210] Cash Flow - Net cash used in operating activities increased by 28.60% to $(5,156,566) for the nine months ended September 30, 2025, compared to $(4,009,871) in 2024[212] - Net cash provided by investing activities was $1,625,347 for the nine months ended September 30, 2025, compared to net cash used of $1,887,016 for the same period in 2024, with proceeds of $1,708,000 from short-term investments[215] - Net cash provided by financing activities decreased to $5,979,077 for the nine months ended September 30, 2025, from $7,052,598 in the same period of 2024, mainly due to lower net proceeds from stock offerings[216] Debt and Obligations - Contractual obligations as of September 30, 2025, total $1,639,415, with $1,400,119 due within one year[168] - The company has accumulated losses to date and has not generated enough revenues to cover operating expenses, raising concerns about its ability to continue as a going concern[161] - The company plans to fund operations through third-party debt, private placements, and stock issuance until achieving profitability[164] Research and Development - Research and development expenses decreased by 13.86% to $809,777 for the three months ended September 30, 2025, compared to $940,063 in 2024[186] - The company capitalized research and development costs for its babesiosis trial at $1,109,279 for the nine months ended September 30, 2025, up from $846,323 in the same period of 2024[214] Accounting and Standards - The company recognized revenue in accordance with FASB ASC Topic No. 606, with revenue recognized when control is transferred to customers[220] - The company has elected to take advantage of the JOBS Act accounting election, allowing it to delay the adoption of certain accounting standards[233] - The company adopted ASU 2023-07 on a retrospective basis for the 2024 annual period, impacting financial statement disclosures[235]