60 Degrees Pharmaceuticals, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in developing therapies for infectious diseases, experienced a notable increase in product revenues, which rose to $135,293 for the three months ended September 30, 2024, compared to $51,188 for the same period in 2023. For the nine months ended September 30, 2024, product revenues reached $365,939, up from $127,892 in the prior year. This growth was primarily driven by a 140% increase in sales volume of its lead product, ARAKODA® (tafenoquine), with sales to U.S. distributors accounting for 92% of total net product sales.

Despite the revenue growth, the company reported a net loss of $(2,160,498) for the three months ended September 30, 2024, a stark contrast to a net income of $4,173,542 in the same quarter of 2023. For the nine-month period, the net loss was $(5,906,739), compared to $(1,767,583) in the previous year. The increase in operating expenses, which totaled $2,155,116 for Q3 2024 compared to $1,577,320 in Q3 2023, contributed to the losses. Research and development expenses surged to $940,063 in Q3 2024, reflecting the company's focus on clinical trials, particularly for babesiosis.

The company’s total assets decreased to $7,420,893 as of September 30, 2024, from $7,783,771 at the end of 2023, while total liabilities also fell significantly from $2,985,675 to $1,458,046. This reduction in liabilities was primarily due to a decrease in current liabilities, which dropped from $2,835,424 to $1,310,151. The accumulated deficit increased to $(38,482,920) as of September 30, 2024, from $(32,580,850) at the end of 2023.

Strategically, the company has made several key moves, including increasing its ownership in its Australian subsidiary to 96.61% to eliminate related party conflicts. A reverse stock split at a ratio of 1:12 was executed on August 12, 2024, to comply with Nasdaq listing requirements. The company also raised approximately $3.4 million through a private placement of warrants in September 2024, aimed at funding ongoing operations and research initiatives.

Overall, while 60 Degrees Pharmaceuticals has shown growth in product revenues, it continues to face challenges with profitability and operational expenses, necessitating ongoing capital raises to support its strategic objectives.