Company: XERI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001477932-25-001010
Chunk: 24

Company: XERIANT, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 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 “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. 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 4.33% - 4.39% 

 F-18Table of Contents

NOTE 8 – RELATED PARTY TRANSACTIONS Consulting fees During the six months ended December 31, 2024 and 2023, the Company recorded $108,500 and $94,500 respectively, in consulting fees to Ancient Investments, LLC, a Company owned by the Company’s CEO