Company: XERI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003761
Chunk: 65

Company: XERIANT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 (47,471 )Total face value $1,740,000  $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 nine months ended March 31, 2025, $951,000 in principal and $95,050 in accrued interest was converted into 105,538,888 shares of common stock. During the nine months ended March 31, 2025 and 2024, the Company recorded $179,149 and $895,891 in interest expense related to these notes, respectively. During the three months ended March 31, 2025 and 2024, the Company recorded $66,153 and $28,563 in interest expense related to these notes, respectively. As of March 31, 2025 and June 30, 2024, the balance of accrued interest related to these loans was $185,825 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 “Derivatives and Hedging” and concluded the warrants meet equity classification. The warrants were issued during the year ended June 30, 2024, were valued using Black-Scholes Merton (“BSM”) and were determined to have a value of $66,660.

 F-17Table of Contents

Significant inputs and results arising from the BSM process are as follows for the redemption feature component of the warrants: Quoted market price on valuation date $0.016 - $0.022 Effective contractual conversion rates $0.01 Contractual term to maturity 3 years Market volatility:    Volatility 137.43% - 137.86% Risk-adjusted interest rate