Company: XERI
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001477932-25-008494
Chunk: 16

Company: XERIANT, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part II, Item 8
Chunk 16
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26, 2022, to purchase 25,000,000 shares of the Company’s Common Stock and (b) a Warrant dated December 27, 2022, to purchase 25,000,000 shares of the Company’s Common Stock. 5. So long as the Company makes all payments as set forth above, Auctus will suspend any further exercise of its conversion rights under the Note. 6. The Company has issued a full and unconditional release to Auctus regarding any claims that the Company has against Auctus with respect to the Note and all agreements relating to the Note. 7. The Company agrees that it will not pursue, file or permit to be pursued. any civil action against Auctus with regard to the released claims. 8. Provided that no event of default has occurred under the Settlement Agreement, Auctus will not pursue, file, or assert any action, suit or legal proceeding against the Company seeking equitable or monetary relief in connection with the Note. 9. Auctus will be entitled to retain its original warrant to purchase 50,968,828 shares of the Company’s Common Stock. The foregoing summary of the Settlement Agreement does not purport to be complete, and is qualified in its entirety by the terms and conditions set forth in Form 8-K filed with the SEC on November 12, 2025. The Company and Auctus have also entered into a Leak-Out Agreement regarding the sale by Auctus of common stock received by Auctus pursuant to a conversion or exercise of any security held by Auctus. Even though the settlement with Auctus occurred subsequent to September 30, 2025, the Company is required to account for the event at the condensed consolidated balance sheet date because it is a Type 1 Subsequent Event. As such, the Company extinguished the $5,900,000 principal amount and $643,546 in accrued interest, in exchange for recording a settlement liability of $3,500,000 along with common stock to be issued at $300,000 (30,000,000 shares valued at $0.01 per share). This resulted in the Company recording a gain 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,