Company: XERI
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001477932-25-008494
Chunk: 71

Company: XERIANT, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 the Company will not earn income sufficient to realize the deferred tax assets during the carry forward periods. The Company has not taken a tax position that, if challenged, would have a material effect on the condensed consolidated financial statements for the three months ended September 30, 2025 and 2024 as defined under ASC 740, “Accounting for Income Taxes.” The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:   Three Months Ended    September 30, 2025  September 30, 2024 U.S. statutory federal income tax rate  21%  21%State income taxes, net of federal income tax  6%  6%Change in valuation allowance  (26)%  (26)%Effective income tax rate  0%  0%

 F-23Table of Contents

 A reconciliation of the income taxes computed at the statutory rate is as follows:   Three Months Ended   September 30, 2025  September 30, 2024        Tax credit (expense) at statutory rate (26%) $(622,924 ) $91,212 Increase (decrease) in valuation allowance  498,339   (91,212 )Income tax expense $(124,585) $—  At September 30, 2025 and June 30, 2025, the significant components of the deferred tax assets are summarized below:   September 30,  June 30,   2025  2025        Net operating loss carry-forward $7,011,392  $7,509,731 Valuation allowance  (7,011,392 )  (7,509,731 )Net deferred tax asset (liability) $-  $-  As of September 30, 2025, and June 30, 2025, the Company had a federal net operating loss carryforward of $25,987,949 and $28,338,606, respectively. The federal net operating loss carryforwards do not expire but may only be used against taxable income to 80%. No tax benefit has been reported in the condensed consolidated financial statements. The annual offset of this carryforward loss against any future taxable