Company: XERI
Filing Date: 2025-10-02
Form Type: 10-K
Source: 0001477932-25-007303
Chunk: 398

Company: XERIANT, INC.
Filing Date: 2025-10-02
Form: 10-K
Item: Item 3
Chunk 398
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 issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. When the Company issues debt that contains a warrant feature, the Company estimates and records the fair value using the Black-Scholes valuation model. Also, as discussed in Note 12 to the Company’s consolidated financial statements, the Company evaluates warrants issued through debt under ASC 815, Derivatives and Hedging, to determine if they require liability classification.

We identified the Company’s application of the accounting for convertible notes and warrant features as a critical audit matter. The principal considerations for our determination of this critical audit matter related to the high degree of subjectivity in the Company’s judgments in determining the qualitative factors. Auditing these judgments and assumptions by the Company involves auditor judgment due to the nature and extent of audit evidence and effort required to address these matters.

The primary procedures we performed to address these critical audit matters included the following:

 ·Reviewed agreements for all relevant terms.    ·Tested management’s identification and treatment of agreement terms.    ·Recalculated management’s fair value based on the terms in the agreements.    ·Assessed the terms and evaluated the appropriateness of management’s application of their accounting policies, along with their use of estimates, in the determination of the amortization of the debt discount.

 We have served as the Company’s auditor since 2024. Astra Audit & Advisory LLCTampa, FloridaOctober 2, 2025 

 F-2Table of Contents

XERIANT, INC. 

CONSOLIDATED BALANCE SHEETS

  As of   As of    June 30, 2025  June 30, 2024        Assets      Current assets      Cash  $44,850  $653,117 Prepaids  11,827   2,931 Note receivable  -   8,163 Total current assets  56,677   664,211          Deposits  -   12,546 Property & equipment, net  4,158   3,995 Operating lease right-of-use asset, net  7,384   32,253 Total assets $68,219  $713,005          Liabilities and stockholders’ deficit        Current liabilities        Accounts payable and accrued liabilities $1,000,975  $1