60 Degrees Pharmaceuticals(US:SXTP)2026-03-30 21:29Financial Performance - Total product revenues for 2025 reached $1,005,471, a 65.3% increase from $607,574 in 2024[375] - Gross profit for 2025 was $223,776, slightly up from $222,809 in 2024, indicating stable profitability despite increased revenues[375] - The net loss attributed to 60 Degrees Pharmaceuticals, Inc. for 2025 was $7,365,158, compared to a loss of $7,947,107 in 2024, representing a 7.3% improvement[376] - For the year ended December 31, 2025, the net loss was $7,368,325, compared to a net loss of $7,955,663 for the year ended December 31, 2024, representing a decrease of approximately 7.4%[385] - The total loss before income taxes for 2025 was $(7,368,325), a slight improvement from $(7,955,663) in 2024[517] Expenses and Costs - Research and development expenses decreased to $2,106,156 in 2025 from $4,986,526 in 2024, reflecting a strategic shift in resource allocation[375] - Total operating expenses for 2025 were $8,385,979, down from $10,011,761 in 2024, showing a reduction of approximately 16.3%[375] - Share-based compensation expense for the year ended December 31, 2025, was $279,873, significantly higher than $32,767 in 2024, reflecting an increase of over 754%[385] - The depreciation expense increased to $43,324 in 2025 from $11,726 in 2024, showing a rise of approximately 269%[385] - Operating lease costs for the years ended December 31, 2025, and 2024 were $20,350 and $28,867, respectively[538] Assets and Liabilities - Cash and cash equivalents decreased to $1,510,065 in 2025 from $1,659,353 in 2024, indicating a need for improved liquidity management[373] - Total assets declined to $5,366,211 in 2025 from $5,759,345 in 2024, a decrease of approximately 6.8%[373] - Total liabilities increased to $1,986,795 in 2025 from $1,804,339 in 2024, marking an increase of about 10.1%[373] - The accumulated deficit grew to $47,893,115 in 2025 from $40,527,957 in 2024, highlighting ongoing financial challenges[373] - The total shareholders' equity as of December 31, 2025, was $3,379,416, a decrease from $3,955,006 as of December 31, 2024, indicating a decline of about 14.6%[381] Cash Flow - The company reported a net cash used in operating activities of $6,849,022 for the year ended December 31, 2025, compared to $5,648,088 for the previous year[392] - The company had net cash provided by financing activities of $6,437,691, a decrease from $7,053,571 in the prior year[392] - The company’s cash flows from operating activities showed a net loss of $7,368,325 for 2025, which is an improvement compared to the previous year's loss of $7,955,663[385] Stock and Equity - The weighted average number of common shares outstanding increased to 670,211 in 2025 from 113,665 in 2024, reflecting changes in capital structure[376] - The Company has authorized 150,000,000 shares of common stock and 1,000,000 shares of preferred stock, with 1,163,142 shares of common stock and 76,480 shares of Series A Preferred Stock issued and outstanding as of December 31, 2025[469] - The Company executed a 1:12 Reverse Stock Split on August 12, 2024, reducing outstanding shares from 21,219,937 to 1,768,337[470] - Following a 1:5 Reverse Stock Split on February 24, 2025, the number of outstanding shares decreased from 7,364,554 to 1,472,891[471] - A 1:4 Reverse Stock Split was implemented on January 20, 2026, further reducing shares from 5,436,441 to 1,359,091[472] Revenue Recognition - The Company recognizes revenue from product sales when control is transferred, with the majority of revenues coming from sales of its Arakoda™ product[433] - The Company recognizes research revenues associated with its contract with the US Army Medical Materiel Development Activity, with revenue recognized when eligible costs are incurred[434] Inventory and Assets Management - The company reported a change in inventory reserve of $251,677 for the year ended December 31, 2025, compared to no change in 2024, indicating a strategic adjustment in inventory management[385] - As of December 31, 2025, the total inventory amounted to $656,924, an increase from $442,764 in 2024, with raw materials valued at $75,662, work in process at $446,957, and finished goods at $385,982[464] Future Outlook and Risks - The company plans to fund operations through third-party debt, private placements, and stock issuances until achieving profitability[395] - The company is subject to significant risks, including the ability to obtain regulatory approvals and competition in the biopharmaceutical industry[390] - The company’s future results are uncertain, and there is substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[396] Tax and Deferred Assets - The Company has established a full valuation allowance against its net deferred tax assets as of December 31, 2025, indicating it is not likely to recognize these benefits[421] - Deferred tax assets increased to $8,196,960 in 2025 from $5,984,119 in 2024, primarily due to an increase in net operating loss carry-forwards[520] - The Company had U.S. federal and state net operating loss carryforwards of approximately $17,028,834 and $17,026,834 respectively as of December 31, 2025, compared to $9,235,194 and $9,234,194 in 2024[521] Subsequent Events - The Company has evaluated subsequent events through March 30, 2026, prior to the issuance of the financial statements[457] - The Company is currently assessing the impact of several recently issued Accounting Standards Updates (ASUs) on its financial statement disclosures, including ASU 2023-07 and ASU 2023-09[459][460]