Company: XERI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001477932-25-001010
Chunk: 96

Company: XERIANT, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 8
Chunk 96
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 and June 30, 2024, the balance of accrued interest of this note was $643,546, which is recorded in the accounts payable and accrued liabilities section of the balance sheet.

 F-17Table of Contents

NOTE 7 – CONVERTIBLE NOTES PAYABLE The carrying value of convertible notes payable, net of discount at December 31, 2024 and June 30, 2024 was as follows:   December 31,  June 30, Convertible Notes Payable 2024  2024 Convertible notes payable (10% interest) $2,101,000  $2,180,000 Less unamortized discount  (5,197 )  (47,471 )Total face value $2,095,803  $2,132,529  Between January 13, 2023, and December 16, 2024, the Company issued convertible bridge loans with an aggregate face value of $2,746,000. 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 $150,000 in principal were issued 15,000,000 warrants during the fiscal year ended June 30, 2024. These warrants have an exercise price of $0.01 per share and have a three-year expiration date.   During the six months ended December 31, 2024, $395,000 in principal and $39,500 in accrued interest was converted into 43,450,000 shares of common stock. During the six months ended December 31, 2024 and 2023, the Company recorded $112,996 and $42,298 in interest expense related to these notes, respectively. During the three months ended December 31, 2024 and 2023, the Company recorded $54,380 and $21,624 in interest expense related to these notes, respectively. As of December 31, 2024 and June 30, 2024, the balance of accrued interest related to these loans was $172,271 and $101,724, respectively. 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