Wed, May 15, 3:57 PM (305 days ago)
For the quarter ending March 31, 2024, 60 Degrees Pharmaceuticals, Inc. reported a significant improvement in its financial performance. The company achieved a net income of $428,048, compared to a net loss of $2,597,471 in the same quarter of 2023. This shift was driven by a substantial increase in product revenues, which rose to $105,674 from $17,172, and the introduction of service revenues amounting to $10,789. The cost of revenues decreased slightly to $65,437, leading to a gross profit of $51,026, a marked improvement from the gross loss of $55,948 in Q1 2023. Operating expenses increased to $1,412,316, primarily due to higher research and development costs and general and administrative expenses. However, the company benefited from a significant gain in the fair value of derivative liabilities, amounting to $1,740,847, and other income of $20,262. Cash flow from operating activities was negative at $1,140,438, but the company raised $1,903,291 through financing activities, primarily from a public offering. Despite the positive net income, the company continues to face challenges, including substantial doubt about its ability to continue as a going concern, as highlighted by the auditors. The company plans to fund operations through additional capital raising and aims to achieve profitability from its marketed product, Arakoda®.