Company: XERI
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001477932-25-008494
Chunk: 58

Company: XERIANT, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 to determine the present value is the Company’s incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Since the common area maintenance expenses are expenses that do not depend on an index or rate, they are excluded from the measurement of the lease liability and recognized in general and administrative expenses on the condensed consolidated statements of operations. During the three months ended September 30, 2025 and 2024, the Company recorded $1,197 and $13,257 in rent expense, respectively, in general and administrative expenses on the condensed consolidated statements of operations.  Right-of-use asset is summarized below:   September 30,2025  June 30, 2025 Office lease $8,719  $8,719 Less accumulated amortization  (2,366 )  (1,335 )Right of use assets, net $6,353  $7,384  Operating lease liability is summarized below:   September 30,2025  June 30, 2025 Office lease $6,353  $7,384 Less: current portion  (4,388 )  (4,279 )Long term portion $1,965  $3,105 

 F-15Table of Contents

Maturity of lease liabilities are as follows: Year ended June 30, 2026 $3,591 Year ended June 30, 2027  3,192 Total future minimum lease payments  6,783 Less: Present value discount  (430 )Lease liability $6,353 

NOTE 6 – CONVERTIBLE NOTES PAYABLE, IN DEFAULT The carrying value of convertible notes payable in default as of September 30, 2025, and June 30, 2025, is as follows.   September 30,  June 30, Convertible Notes Payable 2025  2025 Convertible notes payable issued October 27, 2021 (0% interest) – Auctus Fund LLC $-  $5,900,000 Total face value $-  $5,900,000  Auctus Fund LLC Senior Secured Note Through Maxim Group, LLC, the Company