Company: XERI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001477932-25-001010
Chunk: 15

Company: XERIANT, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 the lease term. Investments The Company follows ASC 325-20, Cost Method Investments, to account for its ownership interest in noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is other than temporary has occurred.  Research and Development Expenses Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $26,576 and $79,735 for the six months ended December 31, 2024 and 2023, respectively. The Company incurred research and development expenses of $15 and $52,753 for the three months ended December 31, 2024 and 2023, respectively.   Advertising and Marketing Expenses The Company expenses advertising and marketing costs as they are incurred and are included in the general and administrative expenses section of the statement of operations. The Company recorded advertising expenses in the amount of $57,336 and $3,858 for the six months ended December 31, 2024 and 2023, respectively. The Company recorded advertising expenses in the amount of $55,301 and $1,336 for the three months ended December 31, 2024 and 2023, respectively. Income Taxes The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of general and administrative expenses. The Company’s consolidated federal tax return and any state tax returns are not currently under examination. The Company follows ASC subtopic 740-10, Income Taxes ("ASC 740-10") for recording the provision for income taxes. Deferred tax assets and liabilities are