Company: XERI
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001477932-25-008494
Chunk: 63

Company: XERIANT, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 63
---
 on extinguishment in the amount of $2,743,546. 

 F-17Table of Contents

NOTE 7 – CONVERTIBLE NOTES PAYABLE The carrying value of convertible notes payable, net of discount at September 30, 2025, and June 30, 2025, was as follows:   September 30,  June 30, Convertible Notes Payable 2025  2025 Convertible notes payable (10% interest) $1,765,000  $1,885,000 Less unamortized discount  (64,538 )  (31,677 )Total face value $1,700,462  $1,853,323  Between January 13, 2023, and September 19, 2025, the Company issued convertible notes payable with an aggregate face value of $3,261,000. The notes have a coupon rate of 10% and a maturity date of one year. The Notes are convertible at a fixed price of $0.01 per share. In connection with the Notes, holders of $430,000 in principal were issued 41,400,000 warrants. These warrants have an exercise price of $0.01 per share and have a three-year expiration date. The convertible notes issued during the three months ended September 30, 2025, contain a provision that prevents the Company from prepaying any principal or interest on the notes. During the three months ended September 30, 2025, $305,000 in principal and $30,500 in accrued interest was converted into 33,550,000 shares of common stock. During the three months ended September 30, 2025 and 2024, the Company recorded $44,783 and $61,617 in interest expense related to these notes, respectively. As of September 30, 2025, and June 30, 2025, the balance of accrued interest related to these loans was $244,524 and $230,241, respectively. Accrued interest is included in the accounts payable and accrued liabilities section of the balance sheet. The Company evaluated the detachable warrants under the requirements of ASC 480 and concluded that the warrants do not fall within the scope of ASC 480. The Company next evaluated the notes under the requirements of ASC 815 “Derivatives and Hedging” and concluded the warrants meet equity classification. The warrants