2024 Q2 Form 10-K Financial Statement

#000121390024028577 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2023 Q4 2023
Revenue $125.0K $42.71K $253.6K
YoY Change 109.92% -91.65% -50.4%
Cost Of Revenue $89.56K $146.3K $474.6K
YoY Change -51.32% -66.17% 9.76%
Gross Profit $35.41K -$103.6K -$221.0K
YoY Change -128.45% -231.34% -380.29%
Gross Profit Margin 28.33% -242.45% -87.15%
Selling, General & Admin $1.130M $1.690M $4.242M
YoY Change 144.07% 29.66% 225.36%
% of Gross Profit 3190.13%
Research & Development $3.095M $100.2K $691.8K
YoY Change 1418.27% -80.93% 31.63%
% of Gross Profit 8741.88%
Depreciation & Amortization $1.536K $10.42K $50.32K
YoY Change -77.74% 12.77% 53.56%
% of Gross Profit 4.34%
Operating Expenses $4.225M $1.791M $4.934M
YoY Change 533.73% -2.11% 169.7%
Operating Profit -$4.189M -$1.894M -$5.155M
YoY Change 431.57% 8.21% 194.47%
Interest Expense -$4.720K -$138.1K -$2.724M
YoY Change -100.43% -96.94% -39.53%
% of Operating Profit
Other Income/Expense, Net $19.68K -$13.95K $5.296M
YoY Change -101.85% -67.74% -12348.27%
Pretax Income -$4.174M -$2.046M -$3.814M
YoY Change 24.83% -66.88% -38.26%
Income Tax $438.00 $60.00 $250.00
% Of Pretax Income
Net Earnings -$4.173M -$2.131M -$3.986M
YoY Change 25.06% -65.52% -35.51%
Net Earnings / Revenue -3338.95% -4990.54% -1572.12%
Basic Earnings Per Share -$4.23 -$0.99
Diluted Earnings Per Share -$4.23 -$0.37 -$1.01
COMMON SHARES
Basic Shares Outstanding 11.57M shares 5.800M shares 3.960M shares
Diluted Shares Outstanding 1.015M shares 3.960M shares

Balance Sheet

Concept 2024 Q2 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.577M $2.142M $2.142M
YoY Change 8167.44% 708.88% 708.88%
Cash & Equivalents $1.577M $2.142M $2.142M
Short-Term Investments
Other Short-Term Assets $1.464M $4.403M $4.403M
YoY Change -71.09% 1533.01% 1533.01%
Inventory $426.0K $466.2K $466.2K
Prepaid Expenses
Receivables $296.4K $231.3K $231.3K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.763M $7.243M $7.243M
YoY Change -33.69% 559.02% 559.02%
LONG-TERM ASSETS
Property, Plant & Equipment $159.6K $71.28K $71.28K
YoY Change 2028.45% 109.96% 109.96%
Goodwill
YoY Change
Intangibles $250.1K $227.3K
YoY Change 21.19% 38.36%
Long-Term Investments
YoY Change
Other Assets $404.5K $242.7K $242.7K
YoY Change -71.73%
Total Long-Term Assets $564.1K $541.2K $541.2K
YoY Change -66.5% 173.03% 173.03%
TOTAL ASSETS
Total Short-Term Assets $3.763M $7.243M $7.243M
Total Long-Term Assets $564.1K $541.2K $541.2K
Total Assets $4.327M $7.784M $7.784M
YoY Change -41.2% 500.04% 500.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $643.4K $506.2K $506.2K
YoY Change -39.21% -33.28% -33.28%
Accrued Expenses $13.65K $13.65K
YoY Change 5.0% 5.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $8.772K $8.770K $8.770K
YoY Change -98.42% -99.96% -99.96%
Total Short-Term Liabilities $1.219M $2.835M $2.835M
YoY Change -95.78% -88.15% -88.15%
LONG-TERM LIABILITIES
Long-Term Debt $148.7K $150.3K $150.3K
YoY Change -99.4% -88.17% -88.17%
Other Long-Term Liabilities $0.00 $0.00
YoY Change -100.0% -100.0%
Total Long-Term Liabilities $148.7K $150.3K $150.3K
YoY Change -89.17% -90.15% -90.15%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.219M $2.835M $2.835M
Total Long-Term Liabilities $148.7K $150.3K $150.3K
Total Liabilities $1.368M $2.914M $2.914M
YoY Change -95.48% -88.29% -88.29%
SHAREHOLDERS EQUITY
Retained Earnings -$36.32M -$32.58M
YoY Change 4.52% 13.07%
Common Stock $102.00 $581.00
YoY Change -57.14% 143.1%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.035M $4.870M $4.870M
YoY Change
Total Liabilities & Shareholders Equity $4.327M $7.784M $7.784M
YoY Change -41.2% 500.04% 500.04%

Cashflow Statement

Concept 2024 Q2 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$4.173M -$2.131M -$3.986M
YoY Change 25.06% -65.52% -35.51%
Depreciation, Depletion And Amortization $1.536K $10.42K $50.32K
YoY Change -77.74% 12.77% 53.56%
Cash From Operating Activities -$1.188M -$63.67K -$4.543M
YoY Change 279.03% -3.5% 349.8%
INVESTING ACTIVITIES
Capital Expenditures $130.6K $66.56K $115.9K
YoY Change 620.13% 13.51% 92.73%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$130.6K -$66.56K -$115.9K
YoY Change 620.13% 13.51% 92.73%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $7.586M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -860.0 0.000 6.475M
YoY Change -100.27% -100.0% 429.96%
NET CHANGE
Cash From Operating Activities -1.188M -63.67K -4.543M
Cash From Investing Activities -130.6K -66.56K -115.9K
Cash From Financing Activities -860.0 0.000 6.475M
Net Change In Cash -1.320M -130.2K 1.816M
YoY Change 12408.34% -32.61% 1097.74%
FREE CASH FLOW
Cash From Operating Activities -$1.188M -$63.67K -$4.543M
Capital Expenditures $130.6K $66.56K $115.9K
Free Cash Flow -$1.319M -$130.2K -$4.659M
YoY Change 297.68% 4.5% 335.36%

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CY2023 us-gaap Proceeds From Issuance Initial Public Offering
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CY2023 us-gaap Interest Paid Net
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CY2022 us-gaap Interest Paid Net
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CY2022 sxtp Conversion Of60 Pllc Member Units To Common Stock
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CY2023 sxtp Debt Discount Recorded In Connection With Derivative Liabilities
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CY2022 sxtp Debt Discount Recorded In Connection With Derivative Liabilities
DebtDiscountRecordedInConnectionWithDerivativeLiabilities
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CY2023 us-gaap Stock Issued1
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CY2023 us-gaap Nature Of Operations
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>1. NATURE OF OPERATIONS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">60 Degrees Pharmaceuticals, Inc. was incorporated in Delaware on June 1, 2022 and merged on the same day with 60 Degrees Pharmaceuticals, LLC, a District of Columbia limited liability company organized on September 9, 2010 (“60P LLC”). 60 Degrees Pharmaceuticals, Inc. and its subsidiary (referred to collectively as the “Company”, “60P”, or “60 Degrees Pharmaceuticals”) is a specialty pharmaceutical company that specializes in the development and marketing of new medicines for the treatment and prevention of infectious diseases. 60P achieved FDA approval of its lead product, ARAKODA® (tafenoquine), for malaria prevention, in 2018. Currently, 60P’s pipeline under development covers development programs for tick-borne fungal and other viral diseases utilizing three of the Company’s future products: (i) new products that contain the Arakoda regimen of tafenoquine; (ii) new products that contain tafenoquine; and (iii) celgosivir. The Company’s headquarters are located in Washington, D.C., with a majority-owned subsidiary in Australia.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Initial Public Offering</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 14, 2023, the Company closed its initial public offering consisting of 1,415,095 units at a price of $5.30 per unit for $6,454,325 in net proceeds, after deducting the underwriting discount and commission and other estimated offering expenses paid by the Company at closing (the “IPO”). Each unit consisted of one share of common stock of the Company, par value $0.0001 per share, one tradeable warrant to purchase one share of common stock at an exercise price of $6.095 per share (a “Tradeable Warrant”), and one non-tradeable warrant to purchase one share of the Company’s common stock at an exercise price of $6.36 per share (a “Non-tradeable Warrant”). The Tradeable Warrants and Non-Tradeable Warrants are immediately exercisable on the date of issuance and will expire five years from the date of issuance (July 12, 2023 to July 12, 2028).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company granted the underwriters a 45-day over-allotment option to purchase up to 212,265 shares of the Company’s common stock at a price of $5.28 per share and/or 212,265 Tradeable Warrants at a price of $0.01 per Tradeable Warrant and/or 212,265 Non-tradeable Warrants at $0.01 per Non-tradeable Warrant, or any combination thereof (the “Over-Allotment”). On July 13, 2023, the underwriters partially exercised the Over-Allotment and purchased an additional 100,644 Tradeable Warrants and 100,644 Non-tradeable Warrants. The Company also issued to the underwriters warrants to purchase 84,906 shares of the Company’s common stock, at an exercise price of $5.83 per share, equal to 110% of the offering price per unit (the “Representative Warrants”). The Representative Warrants are exercisable for a period of five years from the date of issuance (July 14, 2023 to July 14, 2028).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The units were offered and sold pursuant to the Company’s Registration Statement on Form S-1, as amended (File No. 333-269483), originally filed with the Securities and Exchange Commission (the “SEC”) on January 31, 2023 (the “Registration Statement”) and the final prospectus filed with the SEC pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended. The Registration Statement was declared effective by the SEC on July 11, 2023. The common stock and tradeable warrants began trading on The Nasdaq Capital Market on July 12, 2023 under the symbols “SXTP” and “SXTPW,” respectively. The closing of the IPO occurred on July 14, 2023. See Note 6 for further details.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration:underline">Risks and Uncertainties</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is subject to risks common to companies in the biopharmaceutical industry including, but not limited to, the risks associated with developing product candidates and successfully launching and commercializing its drug/device combination products, the Company’s ability to obtain regulatory approval of its such products in the United States and other geography markets, the uncertainty of the broad adoption of its approved products by physicians and consumers, and significant competition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, higher rates of inflation have resulted in the U.S. Federal Reserve raising interest rates. Increases in interest rates, especially if coupled with reduced government spending and volatility in financial markets, may further increase economic uncertainty and heighten these risks. Furthermore, if additional banks and financial institutions enter receivership or become insolvent in the future in response to financial conditions affecting the banking system and financial markets, the Company or its partners’ ability to access existing cash, cash equivalents and investments may be threatened and could have a material adverse effect on the Company’s business and financial condition, including the Company’s ability to access additional capital on favorable terms, or at all, which could in the future negatively affect the Company’s ability to pursue its business strategy.<b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> <b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Going Concern</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. However, the Company has not demonstrated the ability to generate enough revenues to date to cover operating expenses and has accumulated losses to date. This condition, among others, raises substantial doubt about the ability of the Company to continue as a going concern for one year from the date these financial statements are issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In view of these matters, continuation as a going concern is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and achieve gross profitability from their single marketed product. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 10pt">Management plans to fund operations of the Company through third party and related party debt/advances, private placement of restricted securities and the issuance of stock in a subsequent offering until such a time as the business achieves profitability or a business combination may be achieved.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 31, 2023, the Company had cash and cash equivalents totaling $2,142,485, as compared to cash and cash equivalents totaling $264,865 at December 31, 2022. During the twelve months ended December 31, 2023, the Company used cash of $4,542,910 in its operating activities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s future results are subject to substantial risks and uncertainties. The Company has operated at a loss for its entire history and there can be no assurance that it will ever achieve or maintain profitability. The Company has historically funded its operations primarily with proceeds from sales of common stock and warrants for the purchase of common stock, sales of preferred stock, proceeds from the issuance of convertible debt and borrowings under loan and security agreements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company expects to need to raise additional capital under structures available to the Company, including debt and/or equity offerings, which may not be on favorable terms. The Company would not have sufficient funds to meet its obligations within twelve months from the issuance date of these consolidated financial statements. As such, there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt about the Company’s ability to continue as a going concern. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting the Company’s ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If the Company raises funds through collaborations, or other similar arrangements with third parties, it may have to relinquish valuable rights to its technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to the Company and/or may reduce the value of its common stock. If the Company is unable to raise additional funds through equity or debt financings when needed, it may be required to delay, limit, reduce or terminate its product development or future commercialization efforts or grant rights to develop and market its product candidates even if the Company would otherwise prefer to develop and market such product candidates itself.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also expects to use cash and cash equivalents to fund activities relating to commercial support for its existing product and any future clinical research trials and operating activities. The Company’s future liquidity and capital requirements will depend on numerous factors, including the initiation and progress of clinical trials and research and product development programs; obtaining regulatory approvals and complying with applicable laws and regulations; the timing and effectiveness of product commercialization activities, including marketing arrangements; the timing and costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; and the effect of competing technological and market developments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s capital commitments over the next twelve months include interest obligations on the Company’s debt arrangements of $8,772, $13,650 for payments due under operating lease liabilities, and $506,206 to satisfy accounts payable and accrued expenses.</p>
CY2023Q3 sxtp Percentage Of Offering Price Per Unit
PercentageOfOfferingPricePerUnit
1.10 pure
CY2023Q4 us-gaap Cash
Cash
2142485 usd
CY2022Q4 us-gaap Cash
Cash
264865 usd
CY2023 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2023Q4 sxtp Sbaeid Lincluding Accrued Interest Current
SBAEIDLincludingAccruedInterestCurrent
8772 usd
CY2023Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
13650 usd
CY2023Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
506206 usd
CY2023Q4 us-gaap Equity Ownership Percentage Excluding Consolidated Entity And Equity Method Investee
EquityOwnershipPercentageExcludingConsolidatedEntityAndEquityMethodInvestee
1 pure
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Use of Estimates</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and those estimates may be material. Significant estimates include the reserve for inventory, deferred compensation, derivative liabilities, and valuation allowance for the deferred tax asset.</p>
CY2023Q4 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
250000 usd
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InventoryWriteDown
191111 usd
CY2022 us-gaap Inventory Write Down
InventoryWriteDown
162222 usd
CY2023Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
2306796 usd
CY2023 us-gaap Taxes Other
TaxesOther
250 usd
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Concentrations</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, accounts receivable, inventory purchases, and borrowings.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Significant customers represent any customer whose business makes up 10% of receivables or revenues. At December 31, 2023, significant customers represented 92% of receivables (consisting of three customers and two significant customers at 79% and 13%, respectively) and 93% of total net revenues (consisting of two significant customers at 72% and 21%, respectively). At December 31, 2022, 96% of the Company’s receivables (consisting of three customers and two significant customers at 66% and 30%), and 100% of total net revenues (consisting of four customers and three significant at 40%, 39% and 14%, respectively).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, the Company has exclusive relationships with distributors in Australia and Europe. A failure to perform by any of our current distributors would create disruption for patients in those markets. The US government has historically been the Company’s largest customer through a purchase support contract and a clinical study. Both of those activities ended in 2022 and near-term receivables and revenues from the government are not currently anticipated to be significant.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since the Company first started working on tafenoquine all inventory has been acquired in a collaborative relationship from a sole vendor. Should the vendor cease to supply tafenoquine it would take significant costs and efforts to rebuild the supply chain with a new sole vendor sourcing the active pharmaceutical ingredient (“API”).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2023, 0% (85% at December 31, 2022) of the Company’s non-related party debt is held by Knight Therapeutics, previously the senior secured lender and also a publicly traded Canadian company.</p>
CY2023 us-gaap Related Party Transaction Rate
RelatedPartyTransactionRate
0 pure
CY2022 us-gaap Related Party Transaction Rate
RelatedPartyTransactionRate
0.85 pure
CY2023 us-gaap Revenue Recognition Allowances
RevenueRecognitionAllowances
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Revenue Recognition</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes revenue in accordance with FASB ASC Topic No. 606, Revenue from Contracts with Customers (“ASC 606”). Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. As part of the accounting for these arrangements, the Company may be required to make significant judgments, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each performance obligation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues from product sales are recorded at the net sales price, or “transaction price,” which may include estimates of variable consideration that result from product returns. The Company determines the amount of variable consideration by using either the expected value method or the most-likely-amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price reflects the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment. Reserves are established for the estimates of variable consideration based on the amounts the Company expects to be earned or to be claimed on the related sales.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company receives the majority of its revenues from sales of its Arakoda™ product to resellers in the US and abroad. The Company records US commercial revenues as a receivable when our American distributor transfers shipped product to their title model for 60P. Foreign sales to both Australia and Europe are recognized as a receivable at the point product is shipped to distributor. The shipments to Australia and Europe are further subject to profit sharing agreements for boxes sold to customers.</p>
CY2023 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
691770 usd
CY2022 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
525563 usd
CY2023Q4 us-gaap Liabilities Fair Value Disclosure
LiabilitiesFairValueDisclosure
2306796 usd
CY2022Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
1494200 usd
CY2022Q4 us-gaap Liabilities Fair Value Disclosure
LiabilitiesFairValueDisclosure
1494200 usd
CY2023 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Reclassifications</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no material effect on the consolidated results of operations and comprehensive loss, shareholders’ and members’ equity (deficit), or cash flows.</p>
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
397487 usd
CY2023Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
278987 usd
CY2022Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
97486 usd
CY2023Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
187182 usd
CY2022Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
183943 usd
CY2023Q4 us-gaap Inventory Gross
InventoryGross
466169 usd
CY2022Q4 us-gaap Inventory Gross
InventoryGross
678916 usd
CY2022Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
160338 usd
CY2023Q4 us-gaap Inventory Net
InventoryNet
466169 usd
CY2022Q4 us-gaap Inventory Net
InventoryNet
518578 usd
CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
205825 usd
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
148202 usd
CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
148064 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
126902 usd
CY2023Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
57761 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
21300 usd
CY2023 us-gaap Depreciation
Depreciation
21162 usd
CY2022 us-gaap Depreciation
Depreciation
27648 usd
CY2023Q4 us-gaap Finite Lived Patents Gross
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185595 usd
CY2022Q4 us-gaap Finite Lived Patents Gross
FiniteLivedPatentsGross
145613 usd
CY2023Q4 us-gaap Capitalized Computer Software Gross
CapitalizedComputerSoftwareGross
79248 usd
CY2022Q4 us-gaap Capitalized Computer Software Gross
CapitalizedComputerSoftwareGross
27070 usd
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FiniteLivedIntangibleAssetsGross
264843 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Gross
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172683 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
37585 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
8428 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
227258 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
164255 usd
CY2023 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
29157 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
5118 usd
CY2023Q4 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Patent Costs
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93545 usd
CY2022Q2 us-gaap Shares Issued Price Per Share
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5
CY2022Q4 sxtp Percentage Of Share Issued And Outstanding
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0.61 pure
CY2023Q3 us-gaap Common Stock Shares Issued
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31447 shares
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31447 shares
CY2023Q3 us-gaap Conversion Of Stock Shares Issued1
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214934 shares
CY2023Q3 us-gaap Convertible Preferred Stock Shares Issued Upon Conversion
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45560 shares
CY2022Q2 sxtp Bridge Warrants Exercisable Into Common Stock
BridgeWarrantsExercisableIntoCommonStock
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CY2023Q2 sxtp Bridge Warrants Exercisable Into Common Stock
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231917 shares
CY2022Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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151991 shares
CY2023Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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151991 shares
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5.83
CY2023Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
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5.83
CY2022Q2 sxtp Percentage Of Ipo Price
PercentageOfIPOPrice
1.10 pure
CY2023Q2 sxtp Percentage Of Ipo Price
PercentageOfIPOPrice
1.10 pure
CY2023 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss After Reclassification And Tax
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1131771 usd
CY2023 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Expected Dividend Rate
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0 pure
CY2023 us-gaap Preferred Stock Dividend Rate Percentage
PreferredStockDividendRatePercentage
0.06 pure
CY2020Q4 us-gaap Other Deferred Costs Gross
OtherDeferredCostsGross
100000 usd
CY2022Q2 us-gaap Deferred Compensation Cashbased Arrangements Liability Classified Noncurrent
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60000 usd
CY2022Q2 us-gaap Deferred Compensation Plan Assets
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400000 usd
CY2022Q2 us-gaap Deferred Compensation Cash Based Arrangements Liability Current
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100000 usd
CY2022Q2 us-gaap Deferred Compensation Equity
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245000 usd
CY2022Q2 us-gaap Employee Benefits And Share Based Compensation
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100000 usd
CY2022Q2 us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
DeferredCompensationArrangementWithIndividualCompensationExpense
57198 usd
CY2022Q2 us-gaap Compensated Absences Liability
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12500 usd
CY2022Q2 us-gaap Deferred Compensation Arrangement With Individual Cash Awards Granted Percentage
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1 pure
CY2022Q2 us-gaap Deferred Compensation Cash Based Arrangements Liability Current
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38900 usd
CY2022Q2 us-gaap Deferred Compensation Share Based Arrangements Liability Current
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60000 usd
CY2022 us-gaap Deferred Compensation Arrangement With Individual Shares Issued
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65000 shares
CY2022 us-gaap Deferred Compensation Arrangement With Individual Exercise Price
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5
CY2022Q4 us-gaap Deferred Compensation Arrangement With Individual Recorded Liability
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325000 usd
CY2023Q1 us-gaap Deferred Compensation Arrangement With Individual Shares Issued
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65000 shares
CY2022Q4 us-gaap Loans Payable
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20596595 usd
CY2023 us-gaap Long Term Debt Maturities Repayment Terms
LongTermDebtMaturitiesRepaymentTerms
30 days
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120683 usd
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InterestCostsIncurred
1767 usd
CY2023 us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
52628 usd
CY2022 us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
4955 usd
CY2023 us-gaap Interest Expense Debt
InterestExpenseDebt
66558 usd
CY2022 us-gaap Interest Expense Debt
InterestExpenseDebt
115546 usd
CY2022Q1 us-gaap Conversion Of Stock Shares Converted1
ConversionOfStockSharesConverted1
214934 shares
CY2022Q1 us-gaap Extinguishment Of Debt Gain Loss Net Of Tax
ExtinguishmentOfDebtGainLossNetOfTax
223077 usd
CY2022Q4 us-gaap Notes Payable Fair Value Disclosure
NotesPayableFairValueDisclosure
17965670 usd
CY2022Q4 us-gaap Other Notes Payable Current
OtherNotesPayableCurrent
16855887 usd
CY2022Q4 us-gaap Senior Long Term Notes
SeniorLongTermNotes
1109783 usd
CY2023 us-gaap Extinguishment Of Debt Gain Loss Income Tax
ExtinguishmentOfDebtGainLossIncomeTax
614670 usd
CY2023Q2 us-gaap Related Party Transaction Purchases From Related Party
RelatedPartyTransactionPurchasesFromRelatedParty
8472 usd
CY2023Q2 us-gaap Debt Conversion Original Debt Interest Rate Of Debt
DebtConversionOriginalDebtInterestRateOfDebt
0.90 pure
CY2023 us-gaap Conversion Of Stock Shares Converted1
ConversionOfStockSharesConverted1
79926 shares
CY2023 sxtp Initial Public Offering Discount Percentages
InitialPublicOfferingDiscountPercentages
0.15 pure
CY2023 sxtp Common Stock Outstanding Percentages
CommonStockOutstandingPercentages
0.199 pure
CY2023 us-gaap Payments For Fees
PaymentsForFees
10000000 usd
CY2023 us-gaap Management Fee Expense
ManagementFeeExpense
30000 usd
CY2023Q4 sxtp Cumulative Dividend Percentage
CumulativeDividendPercentage
0.06 pure
CY2023Q4 sxtp Common Stock Ownership Percentage
CommonStockOwnershipPercentage
0.199 pure
CY2022Q1 sxtp Equal Royalty Pay To Lender Percentage
EqualRoyaltyPayToLenderPercentage
3.5 usd
CY2023Q1 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
839887 usd
CY2023Q4 us-gaap Available For Sale Securities Debt Maturities Single Maturity Date
AvailableForSaleSecuritiesDebtMaturitiesSingleMaturityDate
21520650 usd
CY2023 us-gaap Assets Fair Value Adjustment
AssetsFairValueAdjustment
-5379269 usd
CY2023 us-gaap Interest Expense Other
InterestExpenseOther
1293549 usd
CY2023 us-gaap Extinguishment Of Debt Amount
ExtinguishmentOfDebtAmount
17434930 usd
CY2023 sxtp Description Of Knight Debt Conversion Agreement
DescriptionOfKnightDebtConversionAgreement
As a result of the completion of the IPO and as required under the terms of the Knight Debt Conversion Agreement, the cumulative outstanding principal as of March 31, 2022 converted to 1,108,337 shares of common stock (representing 19.9% ownership of the Company’s common stock after giving effect to the IPO). In addition, the entirety of the accumulated interest as of March 31, 2022 converted into 80,965 shares of Series A Preferred Stock at the conversion rate detailed above, in full satisfaction of the Company’s obligations with respect to the accumulated interest. Upon consummation of the IPO and under the terms of the Knight Debt Conversion Agreement, the Company became obligated to the contingent milestone payments and the accumulated Royalty discussed above, which value was included in the reacquisition price of the debt upon extinguishment. The Company recognized a final mark-to-market adjustment of $6,105,066 to adjust the Convertible Knight Loan to its fair value on the date of settlement, and as a result, no gain or loss was recognized on the debt extinguishment.
CY2019Q2 us-gaap Debt Current
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3000000 usd
CY2019Q2 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
2100000 usd
CY2023Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
0 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
279061 usd
CY2022Q4 us-gaap Debt Instrument Carrying Amount
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3000000 usd
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279061 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount Premium Net
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2720939 usd
CY2022Q4 us-gaap Accumulated Capitalized Interest Costs
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1555670 usd
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4276609 usd
CY2022Q4 us-gaap Interest Paid Net
InterestPaidNet
731 usd
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8772 usd
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150251 usd
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2750 usd
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160272 usd
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683 usd
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LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
3228 usd
CY2023Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
3342 usd
CY2023Q4 us-gaap Long Term Debt Maturities Repayments Of Principal After Year Five
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142747 usd
CY2023Q4 us-gaap Long Term Debt
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150000 usd
CY2023Q1 us-gaap Other Short Term Investments
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200000 usd
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OtherShortTermInvestments
50000 usd
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OtherShortTermInvestments
250000 usd
CY2022Q2 us-gaap Derivative Assets Liabilities At Fair Value Net
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1483888 usd
CY2022Q2 us-gaap Long Term Debt Current
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979275 usd
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504613 usd
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954725 usd
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37278 usd
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