Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | XERIANT, INC. | |
Entity Central Index Key | 0001481504 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 381,933,144 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-54277 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 27-1519178 | |
Entity Address Address Line 1 | Innovation Centre 1 | |
Entity Address Address Line 2 | 3998 FAU Boulevard, Suite 309 | |
Entity Address City Or Town | Boca Raton | |
Entity Address State Or Province | FL | |
Entity Address Postal Zip Code | 33431 | |
City Area Code | 561 | |
Local Phone Number | 491-9595 | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets | ||
Cash | $ 104,080 | $ 1,065,945 |
Deposits | 12,546 | 12,546 |
Prepaids | 2,200 | 756 |
Total current assets | 118,826 | 1,079,247 |
Property & equipment, net | 5,885 | 4,409 |
Operating lease right-of-use asset | 94,733 | 128,342 |
Investment in JV with Ebenberg LLC | 153,810 | 57,678 |
Total assets | 373,254 | 1,269,676 |
Current liabilities | ||
Accounts payable and accrued liabilities | 189,301 | 56,836 |
Accrued liabilities, related party | 32,000 | 22,000 |
Shares to be issued | 75,200 | 75,200 |
Convertible notes payable, net of discount - in default | 5,850,000 | 3,936,185 |
Convertible bridge loans, at fair value | 185,810 | 0 |
Lease liability, current | 54,169 | 48,963 |
Total current liabilities | 6,386,480 | 4,139,184 |
Lease liability, long-term | 50,880 | 92,197 |
Total liabilities | 6,437,360 | 4,231,381 |
Stockholders' deficit | ||
Common stock, $0.00001 par value; 5,000,000,000 shares authorized; 381,933,144 and 365,239,001 shares issued and outstanding at March 31, 2023 and June 30, 2022, respectively | 3,819 | 3,637 |
Common stock to be issued | 51,950 | 51,950 |
Additional paid in capital | 19,730,244 | 16,351,806 |
Accumulated deficit | (23,030,565) | (16,571,505) |
Total stockholder's deficit | (3,244,534) | (164,094) |
Non-controlling interest | (2,819,572) | (2,797,611) |
Total stockholders' deficit | (6,064,106) | (2,961,705) |
Total liabilities and stockholders' deficit | 373,254 | 1,269,676 |
Series A Preferred Stocks [Member] | ||
Stockholders' deficit | ||
Preferred stock, value | 8 | 8 |
Series B Preferred Shares [Member] | ||
Stockholders' deficit | ||
Preferred stock, value | $ 10 | $ 10 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Jun. 30, 2022 |
Common stock, shares par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 381,933,144 | 365,239,001 |
Common stock, shares outstanding | 381,933,144 | 365,239,001 |
Series B Preferred Shares [Member] | ||
Preferred stock, shares par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares designated | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Series A Preferred Shares [Member] | ||
Preferred stock, shares par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares designated | 3,500,000 | 3,500,000 |
Preferred stock, shares issued | 769,395 | 781,132 |
Preferred stock, shares outstanding | 769,395 | 781,132 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating expenses: | ||||
General and administrative expenses | $ 226,107 | $ 799,521 | $ 1,112,184 | $ 3,120,772 |
Professional fees | 62,445 | 102,646 | 231,073 | 234,671 |
Related party consulting fees | 84,000 | 135,500 | 296,000 | 348,925 |
Research and development expense | 0 | 7,587 | 0 | 5,207,806 |
Sales and marketing expense | 14,688 | 25,771 | 22,987 | 670,989 |
Total operating expenses | 387,240 | 1,071,025 | 1,662,244 | 9,583,163 |
Loss from operations | (387,240) | (1,071,025) | (1,662,244) | (9,583,163) |
Other expenses: | ||||
Amortization of debt discount | 0 | (1,598,683) | (461,842) | (3,012,642) |
Financing fees | (20,600) | 0 | (20,600) | (43,750) |
Interest expense | 0 | (134,927) | 0 | (138,941) |
Decrease (increase) in fair value of convertible bridge loans | (817) | 0 | (817) | 0 |
Loss from Ebenberg JV | 18,919 | 0 | (96,131) | 0 |
Loss on extinguishment of debt | 0 | (3) | (4,259,987) | (536) |
Total other (expense) | (2,498) | (1,733,613) | (4,839,377) | (3,195,869) |
Net loss | (369,138) | (2,804,638) | (6,481,021) | (12,779,032) |
Less net loss attributable to noncontrolling interest | (7,229) | (7,425) | (21,961) | (3,222,294) |
Net loss attributable to common stockholders | $ (382,509) | $ (2,797,213) | $ (6,479,660) | $ (9,556,738) |
Net loss per common share - basic and diluted | $ 0 | $ (0.01) | $ (0.02) | $ (0.03) |
Weighted average number of common shares outstanding - basic and diluted | 377,710,922 | 362,872,609 | 372,820,541 | 339,759,839 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT (UNAUDITED) - USD ($) | Total | Series A Preferred Stock [Member] | Series B Preferreds Stock [Member] | Common Stock | Additional Paid-In Capital | Common Stock To Be Issued [Member] | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest |
Balance, shares at Jun. 30, 2021 | 788,270 | 1,000,000 | 292,815,960 | |||||
Balance, amount at Jun. 30, 2021 | $ 705,306 | $ 8 | $ 10 | $ 2,925 | $ 4,138,194 | $ 51,090 | $ (3,270,235) | $ (216,686) |
Issuance of common stock committed in prior period, shares | 400,000 | |||||||
Issuance of common stock committed in prior period, amount | 0 | 0 | 0 | $ 4 | 47,996 | (48,000) | 0 | 0 |
Sale of common stock, shares | 7,500,000 | |||||||
Sale of common stock, amount | 1,668,500 | 0 | 0 | $ 75 | 499,925 | 1,168,500 | 0 | 0 |
Shares issued as equity kicker, shares | 250,000 | |||||||
Shares issued as equity kicker, amount | 43,753 | 0 | 0 | $ 3 | 43,750 | 0 | 0 | 0 |
Exercise of warrants, shares | 4,185,000 | |||||||
Exercise of warrants, amount | 128,550 | $ 0 | 0 | $ 41 | 125,509 | 3,000 | 0 | 0 |
Conversion of Series A Preferred to Common Stock, shares | (4,000) | 4,000,000 | ||||||
Conversion of Series A Preferred to Common Stock, amount | 0 | $ 0 | 0 | $ 40 | (40) | 0 | 0 | 0 |
Conversion of convertible notes and accrued interest, shares | 10,598,544 | |||||||
Conversion of convertible notes and accrued interest, amount | 173,070 | 0 | 0 | $ 106 | 176,054 | (3,090) | 0 | 0 |
Stock issued for services, shares | 2,825,000 | |||||||
Stock issued for services, amount | 541,100 | 0 | 0 | $ 27 | 449,173 | 91,900 | 0 | 0 |
Stock option compensation | 1,060,324 | 0 | 0 | 0 | 1,060,324 | 0 | 0 | 0 |
Fair value of beneficial conversion feature associated with convertible debt | 250,000 | 0 | 0 | 0 | 250,000 | 0 | 0 | 0 |
Net Loss | (4,447,915) | $ 0 | $ 0 | $ 0 | 0 | 0 | (3,270,099) | (1,177,816) |
Balance, shares at Sep. 30, 2021 | 784,270 | 1,000,000 | 322,574,504 | |||||
Balance, amount at Sep. 30, 2021 | 122,688 | $ 8 | $ 10 | $ 3,221 | 6,790,885 | 1,263,400 | (6,540,334) | (1,394,502) |
Balance, shares at Jun. 30, 2021 | 788,270 | 1,000,000 | 292,815,960 | |||||
Balance, amount at Jun. 30, 2021 | $ 705,306 | $ 8 | $ 10 | $ 2,925 | 4,138,194 | 51,090 | (3,270,235) | (216,686) |
Sale of common stock, shares | 884,344,740 | |||||||
Net Loss | $ (12,779,032) | |||||||
Stock option compensation, shares | 7,968,750 | |||||||
Balance, shares at Mar. 31, 2022 | 781,132 | 1,000,000 | 363,778,386 | |||||
Balance, amount at Mar. 31, 2022 | $ (669,618) | $ 8 | $ 10 | $ 3,633 | 15,494,788 | 97,900 | (12,826,977) | (3,438,980) |
Balance, shares at Jun. 30, 2021 | 788,270 | 1,000,000 | 292,815,960 | |||||
Balance, amount at Jun. 30, 2021 | $ 705,306 | $ 8 | $ 10 | $ 2,925 | 4,138,194 | 51,090 | (3,270,235) | (216,686) |
Stock issued for services, shares | 4,685,615 | |||||||
Stock issued for services, amount | $ 761,954 | |||||||
Balance, shares at Jun. 30, 2022 | 781,132 | 1,000,000 | 365,239,001 | |||||
Balance, amount at Jun. 30, 2022 | (2,961,705) | $ 8 | $ 10 | $ 3,637 | 16,351,806 | 51,950 | (16,571,505) | (2,797,611) |
Balance, shares at Sep. 30, 2021 | 784,270 | 1,000,000 | 322,574,504 | |||||
Balance, amount at Sep. 30, 2021 | 122,688 | $ 8 | $ 10 | $ 3,221 | 6,790,885 | 1,263,400 | (6,540,334) | (1,394,502) |
Issuance of common stock committed in prior period, shares | 23,266,666 | |||||||
Issuance of common stock committed in prior period, amount | 0 | 0 | 0 | $ 233 | 1,162,267 | (1,162,500) | 0 | 0 |
Sale of common stock, shares | 8,200,000 | |||||||
Sale of common stock, amount | 410,000 | 0 | 0 | $ 82 | 409,918 | 0 | 0 | 0 |
Exercise of warrants, shares | 123,600 | |||||||
Exercise of warrants, amount | 0 | $ 0 | 0 | $ 1 | 2,999 | (3,000) | 0 | 0 |
Conversion of Series A Preferred to Common Stock, shares | (3,138) | 3,138,000 | ||||||
Conversion of Series A Preferred to Common Stock, amount | 0 | $ 0 | 0 | $ 31 | (31) | 0 | 0 | 0 |
Conversion of convertible notes and accrued interest, amount | 250,000 | 0 | 0 | $ 0 | 0 | 250,000 | 0 | 0 |
Stock issued for services, shares | 900,000 | |||||||
Stock issued for services, amount | 116,104 | 0 | 0 | $ 9 | 116,095 | 0 | 0 | 0 |
Stock option compensation | 827,221 | 0 | 0 | 0 | 827,221 | 0 | 0 | 0 |
Fair value of beneficial conversion feature associated with convertible debt | 2,365,419 | 0 | 0 | 0 | 2,365,419 | 0 | 0 | 0 |
Net Loss | (5,526,483) | 0 | 0 | 0 | 0 | 0 | (3,489,430) | (2,037,053) |
Fair value of warrants associated with convertible debt | 2,777,081 | $ 0 | $ 0 | $ 0 | 2,777,081 | 0 | 0 | 0 |
Balance, shares at Dec. 31, 2021 | 781,132 | 1,000,000 | 358,202,770 | |||||
Balance, amount at Dec. 31, 2021 | 1,342,031 | $ 8 | $ 10 | $ 3,577 | 14,451,855 | 347,900 | (10,029,764) | (3,431,555) |
Issuance of common stock committed in prior period, shares | 4,229,680 | |||||||
Issuance of common stock committed in prior period, amount | 3,749 | 0 | 0 | $ 42 | 253,707 | (250,000) | 0 | 0 |
Conversion of Series A Preferred to Common Stock, amount | 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 |
Stock issued for services, shares | 500,000 | |||||||
Stock issued for services, amount | 79,750 | 0 | 0 | $ 5 | 79,745 | 0 | 0 | 0 |
Net Loss | (2,804,638) | 0 | 0 | $ 0 | 0 | 0 | (2,797,213) | (7,425) |
Inducement of conversion - interest expense, shares | 845,936 | |||||||
Inducement of conversion - interest expense, amount | 134,927 | 0 | 0 | $ 8 | 134,918 | 0 | 0 | 0 |
Stock option compensation, shares | 0 | |||||||
Stock option compensation, amount | 574,563 | $ 0 | $ 0 | $ 0 | 574,563 | 0 | 0 | 0 |
Balance, shares at Mar. 31, 2022 | 781,132 | 1,000,000 | 363,778,386 | |||||
Balance, amount at Mar. 31, 2022 | (669,618) | $ 8 | $ 10 | $ 3,633 | 15,494,788 | 97,900 | (12,826,977) | (3,438,980) |
Balance, shares at Jun. 30, 2022 | 781,132 | 1,000,000 | 365,239,001 | |||||
Balance, amount at Jun. 30, 2022 | (2,961,705) | $ 8 | $ 10 | $ 3,637 | 16,351,806 | 51,950 | (16,571,505) | (2,797,611) |
Balance, amount at Jun. 30, 2022 | (164,094) | |||||||
Conversion of Series A Preferred to Common Stock, shares | (1,000) | 1,000,000 | ||||||
Conversion of Series A Preferred to Common Stock, amount | 0 | $ 0 | 0 | $ 10 | (10) | 0 | 0 | 0 |
Stock issued for services, shares | 457,143 | |||||||
Stock issued for services, amount | 48,000 | 0 | 0 | $ 5 | 47,995 | 0 | 0 | 0 |
Stock option compensation | 306,170 | 0 | 0 | 0 | 306,170 | 0 | 0 | 0 |
Net Loss | (4,817,521) | 0 | 0 | 0 | 0 | 0 | (4,810,096) | (7,425) |
Fair value of warrants associated with convertible debt | 1,918,393 | 0 | 0 | 0 | 1,918,393 | 0 | 0 | 0 |
Adjustment for rounding | 0 | $ 0 | $ 0 | $ 5 | (5) | 0 | 0 | 0 |
Balance, shares at Sep. 30, 2022 | 780,132 | 1,000,000 | 366,696,144 | |||||
Balance, amount at Sep. 30, 2022 | (5,506,663) | $ 8 | $ 10 | $ 3,657 | 18,624,349 | 51,950 | (21,381,601) | (2,805,036) |
Balance, shares at Jun. 30, 2022 | 781,132 | 1,000,000 | 365,239,001 | |||||
Balance, amount at Jun. 30, 2022 | (2,961,705) | $ 8 | $ 10 | $ 3,637 | 16,351,806 | 51,950 | (16,571,505) | (2,797,611) |
Balance, amount at Jun. 30, 2022 | $ (164,094) | |||||||
Sale of common stock, shares | 946,607,240 | |||||||
Net Loss | $ (6,481,021) | |||||||
Stock option compensation, shares | 18,031,250 | |||||||
Balance, shares at Mar. 31, 2023 | 769,395 | 1,000,000 | 381,933,144 | |||||
Balance, amount at Mar. 31, 2023 | $ (6,064,106) | $ 8 | $ 10 | $ 3,819 | 19,700,387 | 51,950 | (23,030,565) | (2,819,572) |
Balance, shares at Sep. 30, 2022 | 780,132 | 1,000,000 | 366,696,144 | |||||
Balance, amount at Sep. 30, 2022 | (5,506,663) | $ 8 | $ 10 | $ 3,657 | 18,624,349 | 51,950 | (21,381,601) | (2,805,036) |
Conversion of Series A Preferred to Common Stock, shares | (10,237) | 10,237,000 | ||||||
Conversion of Series A Preferred to Common Stock, amount | 0 | $ 0 | 0 | $ 112 | (112) | 0 | 0 | 0 |
Stock option compensation | 209,747 | 0 | 0 | 0 | 209,747 | 0 | 0 | 0 |
Net Loss | (1,294,362) | 0 | 0 | 0 | 0 | 0 | (1,287,055) | (7,307) |
Fair value of warrants associated with convertible debt | 689,621 | $ 0 | $ 0 | $ 0 | 689,621 | 0 | 0 | 0 |
Balance, shares at Dec. 31, 2022 | 769,895 | 1,000,000 | 376,933,144 | |||||
Balance, amount at Dec. 31, 2022 | (5,901,657) | $ 8 | $ 10 | $ 3,769 | 19,523,605 | 51,950 | (22,668,656) | (2,812,343) |
Conversion of Series A Preferred to Common Stock, shares | (500) | 5,000,000 | ||||||
Conversion of Series A Preferred to Common Stock, amount | 0 | $ 0 | 0 | $ 50 | (50) | 0 | 0 | 0 |
Stock option compensation | 126,575 | 0 | 0 | 0 | 126,575 | 0 | 0 | 0 |
Net Loss | (369,138) | 0 | 0 | 0 | 0 | 0 | (361,909) | (7,229) |
Warrants associated with convertible bridge loans | 80,114 | $ 0 | $ 0 | $ 0 | 80,114 | 0 | 0 | 0 |
Balance, shares at Mar. 31, 2023 | 769,395 | 1,000,000 | 381,933,144 | |||||
Balance, amount at Mar. 31, 2023 | $ (6,064,106) | $ 8 | $ 10 | $ 3,819 | $ 19,700,387 | $ 51,950 | $ (23,030,565) | $ (2,819,572) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (6,481,021) | $ (12,779,032) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and Amortization | 1,091 | 332 |
Stock option expense | 642,492 | 2,462,108 |
Stock issued for services | 48,000 | 736,954 |
Financing fees | 20,600 | 178,676 |
Decrease in fair value of Convertible Bridge Loans | 817 | 0 |
Loss on settlement of debt | 4,259,987 | 0 |
Loss from equity-method investments | 96,131 | 0 |
Amortization of Debt Discount | 461,842 | 3,012,642 |
Changes in Operating Assets & Liabilities | ||
Operating lease right of use asset | 33,609 | 30,246 |
Lease liabilities | (36,111) | (31,432) |
Deposits and prepaids | (1,444) | (556) |
Accounts payable and accrued liabilities | (69,171) | (35,513) |
Accrued liability, related party | 10,000 | 5,000 |
Accrued expenses | (3,258) | 5,520 |
Net cash used by operating activities | (1,037,036) | (6,415,055) |
Cash Flows from Investing Activities | ||
Investment in JV Movychem | (192,262) | 0 |
Purchase of property and equipment | (2,567) | (19,990) |
Net cash used in investing activities | (194,829) | (19,990) |
Cash Flows from Financing Activities | ||
Sale of common stock | 0 | 2,078,500 |
Cash from exercise of warrants | 0 | 128,550 |
Proceeds from convertible notes payable | 270,000 | 4,958,950 |
Net cash provided by financing activities | 270,000 | 7,166,000 |
(Decrease) Increase in Cash | (961,865) | 730,955 |
Cash at beginning of period | 1,065,945 | 962,540 |
Cash at end of period | 104,080 | 1,693,495 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Conversion of convertible notes payable and accrued interest | 0 | 440,995 |
Warrants issued with convertible notes payable | 80,114 | 2,894,974 |
Beneficial conversion feature arising from convertible notes payable | $ 0 | $ 2,787,376 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Mar. 31, 2023 | |
ORGANIZATION AND NATURE OF BUSINESS | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS Company Overview Xeriant, Inc. is dedicated to the acquisition, development and commercialization of transformative aerospace technologies, including eco-friendly advanced materials which can be successfully deployed and integrated into products across multiple industry sectors. One of our current initiatives involves the development of a proprietary line of green composite construction materials using environmentally-friendly flame-retardants designed for aerospace applications, branded NEXBOARD TM Operating History We are a development-stage enterprise with a limited operating history with no sales, and operating losses since our inception. The Company has two existing joint ventures, one in the area of aerospace that was effective May 27, 2021 and the other involving advanced materials that was effective April 2, 2022. Advanced Materials A primary focus of our Company is the acquisition and commercial exploitation of eco-friendly, advanced materials and chemicals which have applications across a broad range of industries and the potential to generate significant near-term revenue. Our commercialization strategy encompasses licensing arrangements and joint ventures, which would allow for more rapid access to the market with reduced capital requirements and financial risk. In addition to providing the production and distribution infrastructure, these established partnering companies can streamline testing and certification and add brand recognition value. The advanced materials and chemicals may be sold as standalone products, enhancements to existing products, or used in the development of proprietary products under a new trademarked brand owned by the Company. We are exploring manufacturing and branding opportunities for specific products derived from advanced materials and chemicals acquired or developed, which would involve setting up production facilities, equipment, systems and supply chain. Effective April 2, 2022, we entered into a Joint Venture Agreement with Movychem s.r.o, a Slovakian chemical ® ® ® ® ® On June 8, 2022, we announced the development of a multi-purpose, high-strength fire- and water-resistant composite panel made from a formulation of Movychem’s industrial flame-retardant, Retacell ® ® On August 12, 2022, we filed the trademark “NexBoard,” for construction panels, namely, composite sheets and panels composed primarily of plastic, reinforcement materials and fire-retardant chemicals for use in walls, ceilings, flooring, framing, siding, roofing and decking. The trademark filing was intentionally broad and based upon demand for a general all-purpose construction panel made from a mixture of fire-retardant and recycled materials. After working with Movychem over this period of time and experiencing a number of issues, including supply chain interruptions, mechanical failures, and the general inability to produce an industrial-sized composite wall panels made with Retacell ® On March 31, 2023, we filed a provisional patent application for a method of producing a unique fire-resistant thermoplastic and fiber composite material which may be formed or shaped into various construction products of different thicknesses and dimensions. This green material will be composed primarily of recycled plastic, cardboard and ecofriendly fire-retardant chemicals, including but not limited to use in walls, ceilings, flooring, framing, siding, roofing, molding, and decking, used in construction. Subject to available capital, we are planning to build manufacturing facilities in the United States for the production of NexBoard in order to meet market demand, or alternatively license the technology and process. We have identified potential sites for near-term contract manufacturing, a pilot plant, and larger manufacturing facilities, received bids for specialized manufacturing equipment, developed timetables related to the action plan, and hired a managing director with decades of experience to oversee the projects. Aerospace Another area of interest for our Company is the emerging aviation market called Advanced Air Mobility (AAM), the transition to more efficient, eco-friendly, automated and convenient flight operations enabled by the convergence of technological advancements in design and engineering, composite materials, propulsion systems, battery energy density and manufacturing processes. Next-generation aircraft being developed for this market offer low-cost, on-demand flight for passengers and cargo, utilizing lower altitude airspace and bypassing the traditional hub and spoke airport network with vertical takeoff and landing (VTOL) capabilities. Many of these lightweight aircraft are electrically powered through either hybrid or pure battery systems, which allows for quieter, low emission flights over urban areas, however with limited speed and range. The adoption and integration of niche aerial services through AAM is expected to provide benefits throughout the economy. We plan to partner with and acquire strategic interests in visionary companies that accelerate our mission of commercializing critical breakthrough AAM technologies which enhance performance, increase safety, and enable and support more efficient, autonomous, and sustainable flight operations, including electric and hybrid-electric passenger and cargo transport aircraft capable of vertical takeoff and landing. Our plan to source and acquire strategic interests in leading aerospace companies developing breakthrough VTOL aircraft began in the second quarter of 2021. Effective May 27, 2021, we entered into a Joint Venture Agreement with XTI Aircraft Company (“XTI”), a privately owned OEM based in Englewood, Colorado for the purpose of completing the preliminary design of XTI’s TriFan 600, a 5-passenger plus pilot, hybrid electric vertical takeoff and landing (eVTOL) fixed-wing aircraft. Through our joint venture with XTI, (referred to hereinafter as the “XTI JV”), we were involved in the successful completion of the preliminary design of their TriFan 600 eVTOL aircraft. The TriFan 600 is being designed to become the fastest, longest-range VTOL aircraft in the world and the first commercial fixed-wing VTOL airplane, with current pre-orders of approximately $7 billion in gross revenue upon delivery of those aircraft. Although the purpose of the XTI JV has been achieved, Xeriant may continue to collaborate with XTI in the area of Advanced Ari Mobility. Should XTI and Xeriant determine it is in their best interest to terminate the XTI JV, then it will be dissolved. Should the XTI JV be dissolved, as of March 31, 2023, Xeriant would receive 5.5% equity ownership of XTI. Management believes that our holding and operating company structure has several advantages and will enable us to grow rapidly, acquiring assets primarily through acquisitions, joint ventures, strategic investments, and licensing arrangements. As a publicly traded company, we offer our subsidiaries such benefits as improved access to capital, higher valuations and lower risk through the shared ownership of a diversified portfolio, while allowing these entities to maintain independence in their distinct operations to focus on their fields of expertise. Cost savings and efficiencies may be realized from sharing non-operational functions such as finance, legal, tax, sales & marketing, human resources, purchasing power, as well as investor and public relations. Additionally, we are leveraging our relationship with Florida Atlantic University to provide a collaborative research arm for technologies that require additional validation and the backing of a respected research institution for credibility. The university also may provide access to various grants through the SBIR (Small Business Innovation Research), STTR (Small Business Technology Transfer, NSF (National Science Foundation) and other programs, and if warranted, introductions into a number of government agencies, such as DOD (Department of Defense) and DARPA (Defense Advanced Research Projects Agency). We are pursuing strategic alliances with companies that provide complementary technologies and access to new markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements, which include the accounts of the Company, American Aviation Technologies, LLC, and Eco-Aero, LLC, its subsidiaries, are prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP). All significant intercompany balances and transactions have been eliminated. The consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and presented in US dollars. The fiscal year end is June 30. Going Concern The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. At March 31, 2023 and June 30, 2022, the Company had $104,080 and $1,065,945 in cash and $6,093,241 and $3,002,259 in negative working capital, respectively. For the nine months ended March 31, 2023 and 2022, the Company had a net loss of $6,481,021 and $12,779,032, respectively. Continued losses may adversely affect the liquidity of the Company in the future. Therefore, the factors noted above raise substantial doubt about our ability to continue as a going concern. The recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s existence is dependent upon management’s ability to develop profitable operations and resolve its liquidity problems. Principles of Consolidation The consolidated financial statements include the accounts of Xeriant, Inc., American Aviation Technologies, LLC (“AAT”), and Eco-Aero, LLC. The Company owns a 64% controlling interest of AAT; and a 50% interest in Eco-Aero, LLC, with control exercised through a majority membership in the management committee. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of beneficial conversion features and warrants associated with convertible debt. Actual results could differ from these estimates. Fair Value Measurements and Fair Value of Financial Instruments The Company adopted ASC Topic 820, Fair Value Measurements. ASC Topic 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2: Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3: Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The estimated fair value of certain financial instruments, including all current liabilities are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The inputs to the valuation methodology of stock options and warrants were under level 3 fair value measurements. ASC subtopic 825-10, Financial Instruments The Company follows ASC subtopic 820-10, Fair Value Measurements and Disclosures March 31, 2023 June 30, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Convertible Bridge Loans $ - - 185,810 $ - - - Cash and Cash Equivalents For purposes of the Statements of Cash Flows, the Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents. Convertible Debentures If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature ("BCF"). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 "Debt with Conversion and Other Options." In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. During the year ended June 30, 2022, the Company recorded a BCF in the amount of $2,615,419. Stock-based Compensation The Company measures the cost of employee services received in exchange for equity incentive awards based on the grant date fair value of the award. The Company uses the Black-Scholes valuation model to calculate the fair value of stock options granted to employees or consultants. Stock-based compensation expense is recognized over the period during which the employee is required to provide services in exchange for the award, which is usually the vesting period. Research and Development Expenses Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $0 and $7,587 for the three months ended March 31, 2023 and 2022, respectively. The Company incurred research and development expenses of $0 and $5,207,806 for the nine months ended March 31, 2023 and 2022, respectively. Advertising and Marketing Expenses The Company expenses advertising and marketing costs as they are incurred. The Company recorded advertising expenses in the amount of $1,298 and $3,690 for the three months ended March 31, 2023 and 2022, respectively. The Company recorded advertising expenses in the amount of $26,058 and $168,403 for the nine months ended March 31, 2023 and 2022, 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. Our consolidated federal tax return and any state tax returns are not currently under examination. The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes ("ASC 740-10") for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Basic Income (Loss) Per Share Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Nine Months Ended March 31, 2023 2022 Warrants 108,212,161 55,512,161 Stock options 18,031,250 7,968,750 Convertible notes payable 50,968,829 50,968,829 Preferred stock 769,395,000 769,895,000 Total 946,607,240 884,344,740 |
JOINT VENTURE
JOINT VENTURE | 9 Months Ended |
Mar. 31, 2023 | |
JOINT VENTURE | |
JOINT VENTURE | NOTE 3 – JOINT VENTURE JV with XTI Aircraft On May 31, 2021, the Company entered into a Joint Venture Agreement (the “Agreement”) with XTI Aircraft Company (“XTI”), a Delaware corporation, to form a new company, called Eco-Aero, LLC (the “JV”), a Delaware limited liability company, with the purpose of completing the preliminary design of XTI’s TriFan 600, a 5-passenger plus pilot, hybrid electric, vertical takeoff, and landing (eVTOL) fixed wing aircraft. Under the Agreement, Xeriant is contributing capital, technology, and strategic business relationships, and XTI is contributing intellectual property licensing rights and know-how. XTI and the Company each own 50 percent of the JV. The JV is managed by a management committee consisting of five members, three appointed by the Company and two by XTI. The Agreement was effective on June 4, 2021, with an initial deposit of $1 million into the JV. Xeriant’s financial commitment is for up to $10 million, contributed as required by the aircraft development timeline and budget. Preliminary design review was substantially completed for the TriFan 600 aircraft in early 2022. As of March 31, 2023, the Company had contributed $5,475,155 towards the XTI JV. The Company analyzed the transaction under ASC 810 Consolidation The Company includes the assets and liabilities related to the VIE in the unaudited Condensed Consolidated Balance Sheets. Xeriant, Inc. provides cash to the VIE to fund its operations. The carrying amounts of consolidated VIE's assets and liabilities associated with the VIE subsidiary were as follows: March 31, 2023 June 30, 2022 Assets Cash $ - $ 4,516 Total Assets $ - $ 237,494 Liabilities Due from Xeriant Inc. $ 4,475,155 $ 4,479,547 Total Liabilities $ 4,475,155 $ 4,479,547 JV with Movychem On April 2, 2022, the Company entered into a Joint Venture Agreement with Movychem s.r.o., a Slovakian limited liability company setting forth the terms for the establishment of a joint venture (the “Joint Venture”) to develop applications and commercialize a series of flame-retardant products in the form of polymer gels, powders, liquids and pellets derived from technology developed by Movychem under the name Retacell ™ For its capital contribution to the Joint Venture, pursuant to a Patent and Exclusive License and Assignment Agreement (the “Patent Agreement”), Movychem is transferring to the Joint Venture all of its interest to the know-how and intellectual property relating to Retacell exclusive of all patents, and the Company is contributing the amount of $2,600,000 payable (a) $600,000 at the rate of $25,000 per month over a 24 month period and (b) $2,000,000 within five business days of a closing of a financing in which the Company receives net proceeds of at least $3,000,000 but in no event later than six months from the Effective Date (Amended to February 15, 2023, as per Amended Agreement). As of March 31, 2023, the Company had two payments pending of $25,000 each, subject to satisfaction by Movychem of the terms of the Amendment to Joint Venture Agreement with Movychem. The Company is currently in discussions with Movychem with the intent of working with Movychem under a revised licensing arrangement. Under the terms of the Amendment to the Joint Venture Agreement, if the Company makes its $2,000,000 payment (and assuming the Company is current with its then monthly capital contributions), pursuant to the Patent Agreement, Movychem will transfer all of its rights, title and interest to all of the patents related to Retacell for an amount equal to aggregate cash contributions of the Company to the Joint Venture plus 40% of all royalty payments received by the Joint Venture for the licensing of Retacell products. Pending assignment of the patents to the Joint Venture, pursuant to the Patent Agreement, Movychem has granted to the Joint Venture an exclusive worldwide license under the patents. Concurrently with the execution of the Joint Venture Agreement, Movychem will provide technical services to the Joint Venture related to the exploitation of the Retacell intellectual property and corporate, marketing, business development, communications and administrative services as requested by the Joint Venture in exchange for 40% of all royalty payments received by the Joint Venture for the licensing of Retacell products. Under the Joint Venture Agreement, the Company has agreed to grant to certain individuals affiliated with Movychem five-year warrants (the “Warrants”) to purchase an aggregate of 170,000,000 shares of the Company’s common stock at an exercise price of $0.01 per share with vesting depending on the satisfaction of various milestones as described therein. Assuming that Movychem has fulfilled its obligations, the Joint Venture Agreement grants to Movychem the right to dissolve the Joint Venture in the event that the Company fails to make any of its capital contributions in which case the Joint Venture will be required to grant back to Movychem all joint venture intellectual property and the assignment to Movychem of any outstanding licenses. Additionally, the Services Agreement will be amended to provide that the 40% of royalties to be paid by to the Company will be limited to licensees who were first introduced to the Joint Venture or Movychem, as the case may be. The Company’s position is that Movychem has not met its obligations under the Joint Venture Agreement and has notified Movychem of same. It is uncertain whether or not the Joint Venture will move forward as it is currently organized. The Company analyzed the transaction under ASC 810 Consolidation, to determine if the joint venture classifies as a Variable Interest Entity (“VIE”). The Joint Venture qualifies as a VIE based on the fact the JV does not have sufficient equity to operate without financial support from both parties. According to ASC 810-25-38, a reporting entity shall consolidate a VIE when that reporting entity has a variable interest (or combination of variable interests) that provides the reporting entity with a controlling financial interest on the basis of the provisions in paragraphs 810-10-25-38A through 25-38J. The reporting entity that consolidates a VIE is called the primary beneficiary of that VIE. According to the JV operating agreement, the ownership interests are 50/50 and the agreement provides for a Management Committee of five members. Two of the five members are from Xeriant and Movychem, respectively and one is appointed by mutual agreement of the parties. Movychem is transferring to the Joint Venture all of its interest to the know-how and intellectual property relating to Retacell exclusive of all patents, and the Company is contributing cash. As such, both parties do not have substantial capital at risk. Based on these two factors, the conclusion is that no one is the primary beneficiary of the VIE. Accordingly, Xeriant has not consolidated the VIE. The Company has elected to account for the joint venture as an equity method investment in accordance with ASC 323 Investments – Equity Method and Joint Ventures. As of March 31, 2023, and June 30, 2022, the Company contributed $307,619 and $115,356 to the joint venture, respectively. |
CONCENTRATION OF CREDIT RISKS
CONCENTRATION OF CREDIT RISKS | 9 Months Ended |
Mar. 31, 2023 | |
CONCENTRATION OF CREDIT RISKS | |
CONCENTRATION OF CREDIT RISKS | NOTE 4 – CONCENTRATION OF CREDIT RISKS The Company maintains accounts with financial institutions. All cash in checking accounts is non-interest bearing and is fully insured by the Federal Deposit Insurance Corporation (FDIC). At times, cash balances may exceed the maximum coverage provided by the FDIC on insured depositor accounts. The Company believes it mitigates its risk by depositing its cash and cash equivalents with major financial institutions. On March 31, 2023, and June 30, 2022, the Company had $0 and $811,429 in excess of FDIC insurance, respectively. |
OPERATING LEASE RIGHTOFUSE ASSE
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY | 9 Months Ended |
Mar. 31, 2023 | |
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY | |
OPERATING LEASE RIGHT-OF-USE ASSET AND OPERATING LEASE LIABILITY | NOTE 5 – OPERATING LEASE RIGHT-OF-USE ASSET AND OPERATING LEASE LIABILITY The Company leases 2,911 square feet of office space located in the Research Park at Florida Atlantic University, Innovation Centre 1, 3998 FAU Boulevard, Suite 309, Boca Raton, Florida. The Company entered into a lease agreement commencing on November 1, 2019 through January 1, 2025 in which the first three months of rent were abated. Due to the COVID-19 pandemic, the company decided to have all employees work from home and intends to build out the office space by the end of July 2023 to allow employees to work from the office in July of 2023. The following table illustrates the base rent amounts over the term of the lease: Base Rent Periods November 1, 2019 to October 31, 2020 $ 4,367 November 1, 2020 to October 31, 2021 $ 4,498 November 1, 2021 to October 31, 2022 $ 4,633 November 1, 2022 to October 31, 2023 $ 4,772 November 1, 2023 to October 31, 2024 $ 4,915 November 1, 2024 to January 31, 2025 $ 5,063 Operating lease right-of-use asset and liability are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of our 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 other general and administrative expenses on the statements of operations. At inception the Company paid prepaid rent in the amount of $4,659, which was netted against the operating lease right-of-use asset balance until it was applied in February 2020. Right-of-use asset is summarized below: March 31, 2023 Office lease $ 220,448 Less: accumulated amortization (125,715 ) Right -of- use asset, net $ 94,733 Operating lease liability is summarized below: March 31, 2023 Office lease $ 105,049 Less: current portion (54,169 ) Long term portion 50,880 Maturity of the lease liability is as follows: Fiscal year ending June 30, 2023 15,245 Fiscal year ending June 30, 2024 62,201 Fiscal year ending June 30, 2025 37,112 114,558 Present value discount (9,509 ) Lease liability $ 105,049 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 9 Months Ended |
Mar. 31, 2023 | |
CONVERTIBLE NOTES PAYABLE | |
CONVERTIBLE NOTES PAYABLE | NOTE 6 – CONVERTIBLE NOTES PAYABLE The carrying value of convertible notes payable, net of discount, as of March 31, 2023, and June 30, 2022, was $5,850,000 and $3,936,185, respectively. March 31, June 30, Convertible Notes Payable 2023 2022 Convertible notes payable issued October 27, 2021 (0% interest) – Auctus Fund LLC $ 5,850,000 $ 6,050,000 Total face value 5,850,000 6,050,000 Less unamortized discount - (2,113,815 ) Carrying value $ 5,850,000 $ 3,936,185 Between September 27, 2019 and August 10, 2021, the Company issued convertible notes payable with an aggregate face value of $892,300, of which $342,950 were issued by our subsidiary AAT. The notes have a coupon rate of 6% and maturity dates between three and six months. The agreements provided the holder has the option to convert the principal balance and any accrued interest to common stock of the Company. In the event the holder does not elect to convert the note prior to maturity, the note will automatically convert to common stock. Of the $892,300, $342,950 is convertible at $.0033 per share, $87,000 is convertible at $0.025 per share, $180,550 is convertible at $.03 per share, $31,800 is convertible at $0.003 per share, and the remaining $250,000 is convertible at $.06 per share. All these convertible notes payable have been converted as of December 31, 2021. Auctus Fund, LLC Senior Secured Note On October 27, 2021, the Company issued a convertible note payable with Auctus Fund, LLC (the “Auctus Note”) with the principal sum of $6,050,000, which amount is the $5,142,500 actual amount of the purchase price, hereof plus an original issue discount in the amount of $907,500 and to pay interest on the unpaid principal amount hereof at the rate of zero percent per annum from the issue date until the note becomes due and payable, and $433,550 for professional fees in completing the transactions. The note has a maturity date of twelve months. The agreement provides the holder has the option to convert the principal balance and any accrued interest to common stock of the Company at a conversion price of lesser of (i) $0.1187 or (ii) 75% of the offering price per share divided by the number of shares of common stock. The Auctus Note is secured by the grant of a first priority security interest in the assets of the Company. In connection with the notes, the Company issued warrants indexed to an aggregate 50,968,828 shares of common stock. The warrants have a term of five years and an exercise price of $0.1187. The warrants were recorded at fair value of $2,777,081 to additional-paid-in-capital in accordance with ASC 815-10 based upon the allocation of the debt proceeds. The Company estimated the fair value of the warrants using a Black-Scholes option-pricing model, which is based, in part, upon subjective assumptions including but not limited to stock price volatility, the expected life of the warrants, the risk-free interest rate and the fair value of the common stock underlying the warrants. The Company estimates the volatility of its stock based on the average of three similar size public companies peer group historical volatility that is in line with the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon bond for a maturity similar to the expected remaining life of the warrants. The expected remaining life of the warrants is assumed to be equivalent to their remaining contractual term. The Company was required to determine if the debt contained a beneficial conversion feature (“BCF”), which is based on the intrinsic value on the date of issuance. The Company recorded $2,365,419 conversion feature in additional paid-in capital. The BCF resulted in a debt discount and are amortized over the life of the note. Effective July 26, 2022, the Company entered into an Amendment to Senior Secured Promissory Note (the “Amendment”) with Auctus Fund, LLC (“Auctus”) pursuant to which the parties agreed to amend the Company’s Senior Secured Convertible Promissory Note in the principal amount of $6,050,000 dated October 27, 2021 (the “Note”) issued to Auctus. The Amendment (i) extended the maturity date of the Note to November 1, 2022 and (ii) extended the dates for the completion of the acquisition of XTI Aircraft and the uplist of the Company’s common stock to a national securities exchange to November 1, 2022. In consideration of the Amendment, the Company agreed to (i) grant to Auctus a new Warrant to purchase 25,000,000 shares of Common Stock dated July 26, 2022 (the “Warrant”) at an exercise price of $0.09 per share; (ii) make a prepayment of the Note in the amount of $100,000; and (iii) cause a director of the Company to cancel his 10b-5(1) Plan. The Company tested the modification under ASC 470-50-40 to determine if the modification resulted in an extinguishment. It was determined the present value of the cash flows under the terms of the new debt instrument was at least 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. As a result, the modification resulted in a loss on an extinguishment in the amount of $3,570,366. The loss on extinguishment was determined as follows: Reacquisition Price: Modified convertible debt instrument 5,950,000 Fair value of warrants 1,918,393 Cash payment 100,000 7,968,393 Carrying Value of Original Instrument Original convertible debt instrument 6,050,000 Debt discount - warrant (707,585 ) Original issue discount (341,692 ) Debt discount - BCF (602,696 ) Carrying value of original debt 4,398,027 Loss on extinguishment 3,570,366 Effective December 27, 2022, the Company entered into an Amendment to Senior Secured Promissory Note (the “Amendment”) with Auctus Fund, LLC (“Auctus”) pursuant to which the parties agreed to amend the Company’s Senior Secured Convertible Promissory Note in the principal amount of $6,050,000 dated October 27, 2021 (the “Note”) issued to Auctus. The Amendment (i) extended the maturity date of the Note to March 15, 2023 and (ii) extended the dates for the completion of the acquisition of XTI Aircraft and the uplist of the Company’s common stock to a national securities exchange to March 15, 2023. In consideration of the Amendment, the Company agreed to (i) grant to Auctus a new Warrant to purchase 25,000,000 shares of Common Stock dated December 27, 2022 (the “Warrant”) at an exercise price of $0.09 per share; and (ii) make a prepayment of the Note in the amount of $50,000 on January 15, 2023 and $50,000 on February 15, 2023. As of the date of this filing, the Company had not repaid the Senior Secured Promissory Note, and is in active negotiations with Auctus Fund, LLC, to extend the maturity date. At this time, there is no assurance that Company will be successful in these efforts. The Company tested the modification under ASC 470-50-40 to determine if the modification resulted in an extinguishment. It was determined the present value of the cash flows under the terms of the new debt instrument was at least 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. As a result, the modification resulted in a loss on an extinguishment in the amount of $689,621. The loss on extinguishment was determined as follows: Reacquisition Price: Modified convertible debt instrument 5,850,000 Fair value of warrants 689,621 Accrued Short-term Liability 100,000 6,639,621 Carrying Value of Original Instrument Carrying value of original debt 5,950,000 Loss on extinguishment 689,621 For the nine months ended March 31, 2023, the Company recorded $461,482 in amortization of debt discount related to the Auctus note. As of March 31, 2023 and June 30, 2022, the carrying value of the Auctus note was $5,900,000 and $3,936,185, respectively. The Note matured on March 15, 2023 and is considered in default as of March 31, 2023. The Company is involved in ongoing discussions with Auctus regarding the Note. No assurance can be given that we will reach a successful resolution. |
CONVERTIBLE BRIDGE LOANS - AT F
CONVERTIBLE BRIDGE LOANS - AT FAIR VALUE | 9 Months Ended |
Mar. 31, 2023 | |
CONVERTIBLE BRIDGE LOANS - AT FAIR VALUE | |
CONVERTIBLE BRIDGE LOANS - AT FAIR VALUE | NOTE 7 – CONVERTIBLE BRIDGE LOANS – AT FAIR VALUE Between January 13, 2023 and March 31, 2023, the Company issued convertible bridge loans with an aggregate face value of $270,000. The notes have a coupon rate of 10% and a maturity date of one year. If the Company has a Liquidity Event (i.e. the Company a public offering of Common Stock (or units consisting of Common Stock and warrants to purchase Common Stock), resulting in the listing for trading of the Common Stock on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange), the notes and any accrued interest automatically convert into common stock. The Liquidity Event Conversion Price is the lesser of (a) $0.09 and (b) the product of (x) the Liquidity Event Price multiplied by (z) 75%. In the event a Liquidity Event does not occur, the Holder has the option to convert the Notes on the maturity date at a conversion price of $0.09. In addition to the Notes, the holders received an aggregate 2,700,000 warrants. The warrants have an exercise price of $0.09 per share and have a five-year exercise term. The Company analyzed the Convertible Bridge Loans to determine if they were within the scope of ASC 480 Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity 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 valued using Black-Scholes Merton (“BSM”) and were determined to have a value of $121,316, which is recorded in the Statement of Stockholders’ Equity. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 8 – FAIR VALUE MEASUREMENTS The following table presents the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and as of June 30, 2022: March 31, 2023 June 30, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Convertible Bridge Loans $ — — 185,810 $ — — — Fair values determined by Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets. Level 3 instruments are characterized by unobservable inputs that are supported by little or no market activity, which require management judgment or estimation. The fair value of the Convertible Bridge Loan has three components: (i) Principal, (ii) Interest, and (iii) a Redemption Feature. The first two components (i.e. Principal and Interest) were valued using an income approach. For the Redemption Feature, the Company uses a Black-Scholes Merton (“BSM”) valuation technique because it believes that this technique is reflective of all significant assumption types, and ranges of assumption inputs, that market participants would likely consider in transactions involving this component. Such assumptions include market price, strike price, term, market trading volatility and risk-free rates. Significant inputs and results arising from the Monte Carlo Simulations process are as follows for the Redemption Feature Component of the Convertible Bridge Loans: Inception Dates Quarter Ended Quoted market price on valuation date $0.027 - $0.05 $0.028 Effective contractual conversion rates $0.09 - $0.012 $0.09 - $0.012 Contractual term to maturity 0.4 -1 year 0.5 – 0.8 year Market volatility: Volatility 115% - 135% 135% Risk-adjusted interest rate 4.32% - 5.14% 4.79 – 4.94% The following table summarizes the total carrying value of the Company’s Level 3 instruments held as of March 31, 2023 including cumulative unrealized gains and losses recognized during the nine months ended March 31, 2023: Period Ended March 31, 2023 Balances at beginning of period $ - Issuances: Convertible Bridge Loans 189,885 Interest accruals 3,258 Changes in fair value inputs and assumptions reflected in income (817 ) Balances at end of period $ 185,810 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 9– RELATED PARTY TRANSACTIONS Consulting fees During the nine months ended March 31, 2023, and 2022, the Company recorded $150,000 and $134,000 respectively, in consulting fees to Ancient Investments, LLC, a Company owned by the Company’s CEO, Keith Duffy and the Company’s Executive Director of Corporate Operations, Scott Duffy. As of March 31, 2023, and June 30, 2022, $15,000 and $22,000 was recorded in accrued liabilities. For the nine months ended March 31, 2023, and 2022, the Company recorded $77,000 and $92,000 respectively, in consulting fees to Edward DeFeudis, a Director of the Company. As of March 31, 2023, and June 30, 2022, $5,000 and $0 was recorded in accrued liabilities. During the nine months ended March 31, 2023, and 2022, the Company recorded $49,000 and $65,000 respectively, in consulting fees to AMP Web Services, a Company owned by the Company’s CTO, Pablo Lavigna. As of March 31, 2023, and June 30, 2022, $14,000 and $7,000 was recorded in accrued liabilities. During the nine months ended March 31, 2023, and 2022, the Company recorded $20,000 and $22,500 respectively, in consulting fees to Keystone Business Development Partners, a Company owned by the Company’s CFO, Brian Carey. As of March 31, 2023, and June 30, 2022, $5,000 and $7,000 was recorded in accrued liabilities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies Joint Venture In connection with the Eco-Aero, LLC Joint Venture, discussed in Note 3, the Company has the right to invest up to $10,000,000 into the joint venture. Financial Advisory Agreements On August 10, 2021, the Company entered into an Advisory Agreement with an outside firm to assist the Company with fundraising activities. In connection with the agreement, the Company has the following commitments: · to issue 500,000 shares payable at the date of the agreement, 500,000 shares payable three months from the date of the agreement, 500,000 shares payable nine months from the date of the agreement. · Pay a financing fee of 1.5% of gross proceeds received by the Company up to $100,000,000; a financing fee of 1.25% of gross proceeds received by the Company from $100,000,000-$200,000,000, and a financing fee of 1% of gross proceeds received by the Company over $200,000,000 · M&A fee of 1.5% of the value of a business or asset sold up to $50,000,000; an M&A fee of 1.25% of value of a business or asset sold from $50,000,000-$100,000,000, an M&A fee of 1% of value of a business or asset sold from $100,000,000-$200,000,000, and an M&A fee of 0.5% of value of a business or asset sold over $200,000,000 During the year ended June 30, 2022, the Company issued all 1,500,000 shares under the agreement. On August 19, 2021, the Company entered into an Advisory Agreement with an outside firm to assist the Company with fundraising activities. In connection with the agreement, the Company has the following commitments: · Issue 2,225,000 common shares payable at the date of the agreement, and 2,225,000 common shares payable upon an uplisting of the Company’s common stock to a national exchange. · Pay a cash fee of seven percent 7% of the amount of capital raised, invested or committed; and deliver a warrant (the “Agent Warrant”) to purchase shares of the Common Stock equal to seven percent (7%) of the number of shares of Common Stock underlying the securities issued in the Financing. · Pay a cash fee for entering into a transaction including, without limitation, a merger, acquisition or sale of stock or assets equal to one- and one-half percent (1.5%), or in the event a transaction is consummated with a party that was in communication with the Company prior to the date of this contract, then the fee shall equal one half percent (0.5%). During the year ended June 30, 2022, the Company issued the initial 2,225,000 shares. Litigation On September 1, 2021, Xeriant Inc. brought a cause of action in the Southern District of Florida against a former shareholder for claims, including but not limited to, breach of contract, misrepresentation, and asserting claims to recoup monetary and in-kind distributions made to the shareholder by the Company. The defendant submitted an affirmative defense and counterclaim on October 29, 2021. Board of Advisors Agreements The Company has entered into advisor agreements with various advisory board members. The agreements provide for the following: On July 1, 2021, the Company agreed to issue 100,000 common shares, and $2,500 per meeting paid in cash, common shares, or a combination, an additional bonus of $25,000 paid in common shares issued at the end of each year of service, an option to purchase 5,000,000 common shares at $0.12 per share, vesting quarterly over 24 months, and for each of the following three years (beginning July 1, 2022), an option to purchase an additional 1,000,000 common shares per year thereafter at a 25% discount to the average market price for the preceding 10 trading days. On July 6, 2021, provided an option to purchase 5,000,000 common shares at $0.12 per share, vesting quarterly over 24 months, a bonus of 250,000 common shares issued upon a strategic partnership with a major airline, $2,500 per formal meeting paid in common shares, and an additional bonus of $25,000 paid in common shares issued at the end of each year of service. On July 28, 2021, the Company agreed to issue 250,000 common shares immediately, an option to purchase 5,000,000 common shares at $0.12 per share, vesting quarterly over 24 months, a bonus of 5,000,000 common shares for bringing in a strategic partner that significantly strengthens the Company’s market position, $2,500 per formal meeting paid in cash, common shares or a combination, and an additional bonus of $25,000 paid in common shares issued at the end of each year of service On August 9, 2021, the Company agreed to issue 50,000 common shares, $2,500 per meeting paid in cash, common shares, or a combination, and an additional bonus of $25,000 paid in common shares issued at the end of each year of service. On August 20, 2021, the Company agreed to issue 100,000 common shares, and $2,500 per meeting paid in cash, common shares, or a combination, an additional bonus of $25,000 paid in common shares issued at the end of each year of service, an option to purchase 4,000,000 common shares at $0.12 per share, vesting quarterly over 24 months. On January 20, 2022, the Company agreed to issue 250,000 common shares, and $5,000 paid on a monthly basis, for a period of three months, and an option to purchase 2,250,000 common shares at $0.12 per share, vesting immediately. On March 28, 2022, the Company agreed to issue 150,000 common shares vested monthly over one year, and $2,500 per meeting paid in cash, and additional bonus of $25,000 paid in common shares issued at the end of each year of service. |
EQUITY
EQUITY | 9 Months Ended |
Mar. 31, 2023 | |
EQUITY | |
EQUITY | NOTE 11 – EQUITY Common Stock As of March 31, 2023 and June 30, 2022, the Company had 5,000,000,000 shares of common stock authorized with a par value of $,0.00001. There were 381,933,144 and 365,239,001 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively. Fiscal Year 2022 Issuances During the year ended June 30, 2022 in connection with one of the subscription agreements, the Company issued 250,000 shares as an equity kicker valued at $43,753, which has been expensed as a financing costs. During the year ended June 30, 2022, the Company issued 4,308,600 shares of common stock as a result of warrant exercises in the aggregate proceeds of $128,550. During the year ended June 30, 2022, the Company issued 4,685,615 shares of common stock for services, valued at $761,954. During the year ended June 30, 2022, the Company sold 39,366,666 shares of common stock for aggregate proceeds of $2,078,500. During the year ended June 30, 2022, the Company issued 7,138,000 shares of common stock in exchange for the conversion of 7,138 shares of Series A Preferred Stock. During the year ended June 30, 2022, the Company issued 10,598,544 shares of common stock for the conversion of $167,550 in principal and $4,985 in accrued interest. This resulted in a loss on extinguishment of debt in the amount of $535. During the year ended June 30, 2022, the Company issued 4,229,680 shares of common stock for the conversion of $250,000 principal balance of convertible notes payable and $3,749 accrued interest. During the year ended June 30, 2022, the Company issued 845,936 shares of common stock in exchange for the inducement to the convertible notes holders to convert at fair value of $134,927. Nine Months Ended March 31, 2023 On July 11, 2022, the Company issued 1,000,000 shares of common stock in exchange for the conversion of 1,000 shares of Series A Preferred Stock. On July 13, 2022, the Company issued 457,143 shares to a consultant for services valued at $48,000. On October 24, 2022, the Company issued 10,237,000 shares of common stock in exchange for the conversion of 10,237 shares of Series A Preferred Stock. On March 17, 2023, the Company issued 5,000,000 shares of common stock in exchange for the conversion of 500 shares of Series A Preferred Stock. Common Stock to be Issued During the year ended June 30, 2022, the Company sold 200,000 shares of common stock for aggregate proceeds of $6,000, or $0.03 per share. As of June 30, 2022, these shares are categorized in common stock to be issued. During the year ended June 30, 2022, the Company agreed to pay a consultant 250,000 shares in exchange to $45,950 in services. As of June 30, 2022, these shares are categorized in common stock to be issued. Series A Preferred Stock There are 100,000,000 shares authorized as preferred stock, of which 3,500,000 are designated as Series A Preferred Stock having a par value of $0.00001 per share. The Series A preferred stock has the following rights: · Voting · Dividends: · Conversion · The shares of Series A Preferred Stock are redeemable at the option of the Corporation at any time after September 30, 2022 upon not less than 30 days written notice to the holders. It is not mandatorily redeemable. As of March 31, 2023, and June 30, 2022, the Company has 769,395 and 781,132 of shares of Series A Preferred Stock issued and outstanding, respectively. On February 15, 2021, in accordance with Florida Law and conversations with counsel, the Board of Directors of the Company rescinded 990,000 Series A Preferred Shares, which represented all preferred shares issued to one of the shareholders in the Share Exchange between American Aviation Technologies, LLC and Xeriant, Inc. entered into on April 19, 2019, due to breach of contract. During March of 2021, the remaining former members of American Aviation Technologies, LLC agreed to allow the Company to rescind an aggregate of 1,250,001 of their 1,760,000 Series A Preferred Shares issued pursuant to the Share Exchange between American Aviation Technologies, LLC and Xeriant, Inc., as a result of said breach. As a result of the cancellation, the Company reduced the investment in AAT by the value of these preferred shares. On March 27, 2021, Spider Investments, LLC returned 41,000 Series A Preferred Shares to the treasury of the Company. On July 11, 2022, the Company issued 1,000,000 shares of common stock in exchange for the conversion of 1,000 shares of Series A Preferred Stock. On October 24, 2022, the Company issued 10,237,000 shares of common stock in exchange for the conversion of 10,237 shares of Series A Preferred Stock. On March 17, 2023, the Company issued 5,000,000 shares of common stock in exchange for the conversion of 500 shares of Series A Preferred Stock. Series B Preferred Stock On March 25, 2021, the Certificate of Designation for the Series B Preferred was recorded by the State of Nevada. There are 100,000,000 shares authorized as preferred stock, of which 1,000,000 are designated as Series B Preferred Stock having a par value of $0.00001 per share. The Series B preferred stock is not convertible, does not have any voting rights and no liquidation preference. During the year ended June 30, 2021, the Company issued 1,000,000 shares of Series B Preferred Stock to the Company’s CEO as part of his employment agreement. Stock Options In connection with certain advisory board compensation agreements, the Company issued an aggregate 21,250,000 options at an exercise price of $0.12 per share for the year ended June 30, 2022. These options vest quarterly over twenty-four months and have a term of three years. The grant date fair value was $3,964,207. The Company recorded compensation expense in the amount of $642,492 and $1,887,545 for these options for the nine months ended March 31, 2023, and 2022, respectively. As of March 31, 2023, there was $59,624 of total unrecognized compensation cost related to non-vested portion of options granted. As of March 31, 2023, there are 21,250,000 options outstanding, of which 18,031,250 are exercisable. The weighted average remaining term is 1.17 years. Significant inputs and results arising from the Black-Scholes process are as follows for the options: Quoted market price on valuation date $0.169 - $0.23 Exercise prices $0.12 Range of expected term 1.55 Years – 2.49 Years Range of market volatility: Range of equivalent volatility 215.12% - 275.73% Range of interest rates 0.20% - 0.47% Warrants As of March 31, 2023, and June 30, 2022, the Company had 108,212,161 and 55,512,161 warrants outstanding respectively. The warrants are detailed as follows: Warrants Issued with Convertible Notes Warrants Issued with Convertible Bridge Loans Shares indexed to common stock 105,512,161 2,700,000 Exercise price $0.025 - $0.1187 $0.021 Contractual term to maturity 5 years 5 years Relative fair values $2,777,081 $121,316 The Company evaluated the warrants under ASC 815 Derivatives and Hedging (“ASC 815”) and determined that they did not require liability classification. The warrants were recorded in additional paid-in capital under their aggregate relative fair values. During the year ended June 30, 2022, holders of warrants exercised warrants for 4,305,000 shares of common stock for aggregate proceeds of $128,550. As of March 31, 2023, and June 30, 2022, the weighted average remaining useful life of the warrants was 4.0. |
NONCONTROLLING INTEREST
NONCONTROLLING INTEREST | 9 Months Ended |
Mar. 31, 2023 | |
NONCONTROLLING INTEREST | |
NON-CONTROLLING INTEREST | NOTE 12 - NON-CONTROLLING INTEREST AAT membership unit adjustment On May 12, 2021, on further advice of counsel and in good faith , AAT Subsidiary On May 12, 2021, the Company’s position in American Aviation Technologies, LLC was reduced to 64%, and therefore the subsidiary is now classified as majority owned. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The consolidated financial statements, which include the accounts of the Company, American Aviation Technologies, LLC, and Eco-Aero, LLC, its subsidiaries, are prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP). All significant intercompany balances and transactions have been eliminated. The consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and presented in US dollars. The fiscal year end is June 30. |
Going concern | The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. At March 31, 2023 and June 30, 2022, the Company had $104,080 and $1,065,945 in cash and $6,093,241 and $3,002,259 in negative working capital, respectively. For the nine months ended March 31, 2023 and 2022, the Company had a net loss of $6,481,021 and $12,779,032, respectively. Continued losses may adversely affect the liquidity of the Company in the future. Therefore, the factors noted above raise substantial doubt about our ability to continue as a going concern. The recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s existence is dependent upon management’s ability to develop profitable operations and resolve its liquidity problems. |
Principles of Consolidation | The consolidated financial statements include the accounts of Xeriant, Inc., American Aviation Technologies, LLC (“AAT”), and Eco-Aero, LLC. The Company owns a 64% controlling interest of AAT; and a 50% interest in Eco-Aero, LLC, with control exercised through a majority membership in the management committee. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of beneficial conversion features and warrants associated with convertible debt. Actual results could differ from these estimates. |
Fair Value Measurements and Fair Value of Financial Instruments | The Company adopted ASC Topic 820, Fair Value Measurements. ASC Topic 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2: Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3: Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The estimated fair value of certain financial instruments, including all current liabilities are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The inputs to the valuation methodology of stock options and warrants were under level 3 fair value measurements. ASC subtopic 825-10, Financial Instruments The Company follows ASC subtopic 820-10, Fair Value Measurements and Disclosures March 31, 2023 June 30, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Convertible Bridge Loans $ - - 185,810 $ - - - |
Cash and Cash Equivalents | For purposes of the Statements of Cash Flows, the Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company has no cash equivalents. |
Convertible Debentures | If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature ("BCF"). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 "Debt with Conversion and Other Options." In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. During the year ended June 30, 2022, the Company recorded a BCF in the amount of $2,615,419. |
Stock-based Compensation | The Company measures the cost of employee services received in exchange for equity incentive awards based on the grant date fair value of the award. The Company uses the Black-Scholes valuation model to calculate the fair value of stock options granted to employees or consultants. Stock-based compensation expense is recognized over the period during which the employee is required to provide services in exchange for the award, which is usually the vesting period. |
Research and Development Expenses | Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $0 and $7,587 for the three months ended March 31, 2023 and 2022, respectively. The Company incurred research and development expenses of $0 and $5,207,806 for the nine months ended March 31, 2023 and 2022, respectively. |
Advertising and Marketing Expenses | The Company expenses advertising and marketing costs as they are incurred. The Company recorded advertising expenses in the amount of $1,298 and $3,690 for the three months ended March 31, 2023 and 2022, respectively. The Company recorded advertising expenses in the amount of $26,058 and $168,403 for the nine months ended March 31, 2023 and 2022, 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. Our consolidated federal tax return and any state tax returns are not currently under examination. The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes ("ASC 740-10") for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. |
Basic Income (Loss) Per Share | Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Nine Months Ended March 31, 2023 2022 Warrants 108,212,161 55,512,161 Stock options 18,031,250 7,968,750 Convertible notes payable 50,968,829 50,968,829 Preferred stock 769,395,000 769,895,000 Total 946,607,240 884,344,740 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of fair value measurements | March 31, 2023 June 30, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Convertible Bridge Loans $ - - 185,810 $ - - - |
Schedule of weighted average number of shares | Nine Months Ended March 31, 2023 2022 Warrants 108,212,161 55,512,161 Stock options 18,031,250 7,968,750 Convertible notes payable 50,968,829 50,968,829 Preferred stock 769,395,000 769,895,000 Total 946,607,240 884,344,740 |
JOINT VENTURE (Tables)
JOINT VENTURE (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
JOINT VENTURE | |
Schedule of consolidated VIE's assets and liabilities | March 31, 2023 June 30, 2022 Assets Cash $ - $ 4,516 Total Assets $ - $ 237,494 Liabilities Due from Xeriant Inc. $ 4,475,155 $ 4,479,547 Total Liabilities $ 4,475,155 $ 4,479,547 |
OPERATING LEASE RIGHTOFUSE AS_2
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY | |
Schedule of Rent periods | November 1, 2019 to October 31, 2020 $ 4,367 November 1, 2020 to October 31, 2021 $ 4,498 November 1, 2021 to October 31, 2022 $ 4,633 November 1, 2022 to October 31, 2023 $ 4,772 November 1, 2023 to October 31, 2024 $ 4,915 November 1, 2024 to January 31, 2025 $ 5,063 |
Summary of Right-of-use assets, net | Right-of-use asset is summarized below: March 31, 2023 Office lease $ 220,448 Less: accumulated amortization (125,715 ) Right -of- use asset, net $ 94,733 |
Summary of Operating lease liability | Operating lease liability is summarized below: March 31, 2023 Office lease $ 105,049 Less: current portion (54,169 ) Long term portion 50,880 Maturity of the lease liability is as follows: Fiscal year ending June 30, 2023 15,245 Fiscal year ending June 30, 2024 62,201 Fiscal year ending June 30, 2025 37,112 114,558 Present value discount (9,509 ) Lease liability $ 105,049 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
CONVERTIBLE NOTES PAYABLE | |
Schedule of convertible notes payable | March 31, June 30, Convertible Notes Payable 2023 2022 Convertible notes payable issued October 27, 2021 (0% interest) – Auctus Fund LLC $ 5,850,000 $ 6,050,000 Total face value 5,850,000 6,050,000 Less unamortized discount - (2,113,815 ) Carrying value $ 5,850,000 $ 3,936,185 |
Schedule of loss on extinguishment on convertible debt instrument | Reacquisition Price: Modified convertible debt instrument 5,950,000 Fair value of warrants 1,918,393 Cash payment 100,000 7,968,393 Carrying Value of Original Instrument Original convertible debt instrument 6,050,000 Debt discount - warrant (707,585 ) Original issue discount (341,692 ) Debt discount - BCF (602,696 ) Carrying value of original debt 4,398,027 Loss on extinguishment 3,570,366 Reacquisition Price: Modified convertible debt instrument 5,850,000 Fair value of warrants 689,621 Accrued Short-term Liability 100,000 6,639,621 Carrying Value of Original Instrument Carrying value of original debt 5,950,000 Loss on extinguishment 689,621 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Company's assets and liabilities measured at fair value on a recurring basis | March 31, 2023 June 30, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Convertible Bridge Loans $ — — 185,810 $ — — — |
Schedule of redemption feature component of convertible bridge loans | Inception Dates Quarter Ended Quoted market price on valuation date $0.027 - $0.05 $0.028 Effective contractual conversion rates $0.09 - $0.012 $0.09 - $0.012 Contractual term to maturity 0.4 -1 year 0.5 – 0.8 year Market volatility: Volatility 115% - 135% 135% Risk-adjusted interest rate 4.32% - 5.14% 4.79 – 4.94% |
Schedule of carrying value of the Company's Level 3 instruments | Period Ended March 31, 2023 Balances at beginning of period $ - Issuances: Convertible Bridge Loans 189,885 Interest accruals 3,258 Changes in fair value inputs and assumptions reflected in income (817 ) Balances at end of period $ 185,810 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
EQUITY | |
Summary of Significant inputs and results arising from the black-scholes | Quoted market price on valuation date $0.169 - $0.23 Exercise prices $0.12 Range of expected term 1.55 Years – 2.49 Years Range of market volatility: Range of equivalent volatility 215.12% - 275.73% Range of interest rates 0.20% - 0.47% |
Summary of Warrants | Warrants Issued with Convertible Notes Warrants Issued with Convertible Bridge Loans Shares indexed to common stock 105,512,161 2,700,000 Exercise price $0.025 - $0.1187 $0.021 Contractual term to maturity 5 years 5 years Relative fair values $2,777,081 $121,316 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Fair Value Inputs Level 2 [Member] | ||
Convertible Bridge Loans | $ 0 | $ 0 |
Fair Value Inputs Level 1 [Member] | ||
Convertible Bridge Loans | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Convertible Bridge Loans | $ 185,810 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - shares | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Warrants | 108,212,161 | 55,512,161 |
Stock options | 18,031,250 | 7,968,750 |
Convertible notes payable | 50,968,829 | 50,968,829 |
Preferred stock | 769,395,000 | 769,895,000 |
Total | 946,607,240 | 884,344,740 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Research and development expenses | $ 0 | $ 7,587 | $ 0 | $ 5,207,806 | |||||
Ownership percentage | 64% | ||||||||
Cash | 104,080 | $ 104,080 | $ 1,065,945 | ||||||
Working capital | (6,093,241) | (6,093,241) | (3,002,259) | ||||||
Net Loss | (369,138) | $ (1,294,362) | $ (4,817,521) | (2,804,638) | $ (5,526,483) | $ (4,447,915) | (6,481,021) | (12,779,032) | |
Debt instrument, convertible, beneficial conversion feature | $ 2,615,419 | ||||||||
Advertising expenses | $ 1,298 | $ 3,690 | $ 26,058 | $ 168,403 | |||||
Eco-Aero, LLC [Member] | |||||||||
Ownership percentage | 50% |
JOINT VENTURE (Details)
JOINT VENTURE (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Total Assets | $ 373,254 | $ 1,269,676 |
Due from Xeriant Inc. | 32,000 | 22,000 |
Total Liabilities | 6,437,360 | 4,231,381 |
VIE Unauited Condensed Consolidated Balance Sheet [Member] | ||
Cash | 0 | 4,516 |
Total Assets | 0 | 237,494 |
Due from Xeriant Inc. | 4,475,155 | 4,479,547 |
Total Liabilities | $ 4,475,155 | $ 4,479,547 |
JOINT VENTURE (Details Narrativ
JOINT VENTURE (Details Narrative) - USD ($) | 1 Months Ended | |||
Apr. 02, 2022 | May 31, 2021 | Mar. 31, 2023 | Jun. 30, 2022 | |
Joint Venture With Movychem [Member] | ||||
Ownership owned percentage | 50% | |||
Contribution amount | $ 307,619 | $ 115,356 | ||
Pending payments | $ 25,000 | |||
Description about intellectual property | Movychem is transferring to the Joint Venture all of its interest to the know-how and intellectual property relating to Retacell exclusive of all patents, and the Company is contributing the amount of $2,600,000 payable (a) $600,000 at the rate of $25,000 per month over a 24 month period and (b) $2,000,000 within five business days of a closing of a financing in which the Company receives net proceeds of at least $3,000,000 but in no event later than six months from the Effective Date | |||
Company payment | $ 2,000,000 | |||
Purchase number of share common stock | 170,000,000 | |||
Exercise price | $ 0.01 | |||
Series A Preferred Stocks [Member] | ||||
Ownership owned percentage | 50% | |||
financial commitment agreegate amount | $ 10,000,000 | |||
Initial Deposit | 1,000,000 | |||
Contribution amount | $ 5,475,155 | |||
Investment obligation | $ 10,000,000 |
CONCENTRATION OF CREDIT RISKS (
CONCENTRATION OF CREDIT RISKS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Jun. 30, 2022 | |
CONCENTRATION OF CREDIT RISKS | ||
Cash in excess of FDIC insurance | $ 0 | $ 811,429 |
OPERATING LEASE RIGHT OF USE AS
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
November 1, 2022 to October 31, 2023 [Member] | |
Base rent | $ 4,772 |
November 1 2020 to October 31 2021 [Member] | |
Base rent | 4,498 |
November 1 2023 to October 31 2024 [Member] | |
Base rent | 4,915 |
November 1, 2024 to January 31, 2025 [Member] | |
Base rent | 5,063 |
November 1, 2021 to October 31, 2022 [Member] | |
Base rent | 4,633 |
November 1, 2019 to October 31, 2020 [Member] | |
Base rent | $ 4,367 |
OPERATING LEASE RIGHT OF USE _2
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details 1) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY | ||
Office lease | $ 220,448 | |
Less accumulated amortization | (125,715) | |
Right-of-use assets net | $ 94,733 | $ 128,342 |
OPERATING LEASE RIGHT OF USE _3
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details 2) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY | ||
Office lease | $ 105,049 | |
Less current portion | (54,169) | |
Long term portion | 50,880 | $ 92,197 |
Maturity of the lease liability is as follows | ||
Fiscal year ending June 30 2023 | 15,245 | |
Fiscal year ending June 30 2024 | 62,201 | |
Fiscal year ending June 30 2025 | 37,112 | |
Lease liability Gross | 114,558 | |
Present value discount | (9,509) | |
Lease liability | $ 105,049 |
OPERATING LEASE RIGHT OF USE _4
OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY (Details Narrative) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Borrowing Interest Rate | 10% |
Prepaid rent | $ 4,659 |
Lease Agreement [Member] | |
Capital Leases Description | The Company leases 2,911 square feet of office space located in the Research Park at Florida Atlantic University, Innovation Centre 1, 3998 FAU Boulevard, Suite 309, Boca Raton, Florida. |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Total face value | $ 5,850,000 | $ 6,050,000 |
Less unamortized discount | 0 | (2,113,815) |
Carrying value | 5,850,000 | 3,936,185 |
Convertible notes payable issued October 27, 2021 | ||
Total face value | $ 5,850,000 | $ 6,050,000 |
CONVERTIBLE NOTES PAYABLE (De_2
CONVERTIBLE NOTES PAYABLE (Details 1) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Reacquisition Price | |
Modified convertible debt instrument | $ 5,950,000 |
Fair value of warrants | 1,918,393 |
Cash payment | 100,000 |
Total | 7,968,393 |
Carrying Value of Original Instrument | |
Original convertible debt instrument | 6,050,000 |
Debt discount - warrant | (707,585) |
Original issue discount | (341,692) |
Debt discount - BCF | (602,696) |
Carrying value of original debt | 4,398,027 |
Loss on an extinguishment | $ 3,570,366 |
CONVERTIBLE NOTES PAYABLE (De_3
CONVERTIBLE NOTES PAYABLE (Details 2) | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Reacquisition Price | |
Modified convertible debt instrument | $ 5,850,000 |
Fair value of warrants | 689,621 |
Accrued Short-term Liability | 100,000 |
Total | 6,639,621 |
Carrying Value of Original Instrument | |
Carrying value of original debt | 5,950,000 |
Loss on an extinguishment | $ 689,621 |
CONVERTIBLE NOTES PAYABLE (De_4
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jan. 15, 2023 | Feb. 15, 2023 | Dec. 27, 2022 | Jul. 26, 2022 | Oct. 27, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Carrying value of convertible notes payable, net of discount | $ 5,850,000 | $ 5,850,000 | $ 3,936,185 | |||||||
Carrying value of Auctus note | 5,900,000 | 5,900,000 | 3,936,185 | |||||||
Amortization of debt discount | 461,482 | |||||||||
Exercise price | $ 0.09 | |||||||||
Professional fees | 62,445 | $ 102,646 | 231,073 | $ 234,671 | ||||||
Loss on an extinguishment | 0 | $ (3) | (4,259,987) | $ (536) | 535 | |||||
Convertible notes payable, aggregate face value | 270,000 | 270,000 | $ 250,000 | |||||||
Between September 27 2019 and Aug 10 2021 [Member] | ||||||||||
Convertible notes payable, aggregate face value | 892,300 | 892,300 | ||||||||
Convertible note payable issued by AAT | $ 342,950 | $ 342,950 | ||||||||
Conversion price description | Of the $892,300, $342,950 is convertible at $.0033 per share, $87,000 is convertible at $0.025 per share, $180,550 is convertible at $.03 per share, $31,800 is convertible at $0.003 per share, and the remaining $250,000 is convertible at $.06 per share. | |||||||||
Interest rate | 6% | 6% | ||||||||
Secured Debt [Memebr] | Senior Secured Note [Member] | Auctus Fund, LLC [Member] | ||||||||||
Original issue discount | $ 907,500 | |||||||||
Debt instrument converted principal amount | 6,050,000 | |||||||||
Purchase price | $ 5,142,500 | |||||||||
Conversion price | $ 0.1187 | |||||||||
Aggregate warrant issued of common stock | 50,968,828 | |||||||||
Exercise price | $ 0.1187 | |||||||||
Fair value of warrant | $ 2,777,081 | |||||||||
Fair value of beneficial conversion feature associated with convertible debt Additional paid in capital | $ 2,365,419 | $ 2,365,419 | ||||||||
Professional fees | $ 433,550 | |||||||||
Secured Debt [Memebr] | Promissory Note [Member] | Auctus Fund, LLC [Member] | October 27, 2021 [Member] | ||||||||||
Debt instrument converted principal amount | $ 6,050,000 | $ 6,050,000 | ||||||||
Exercise price | $ 0.09 | |||||||||
Maturity date | Mar. 15, 2023 | Nov. 01, 2022 | ||||||||
New warrant to purchase shares of Common Stock | 25,000,000 | 25,000,000 | ||||||||
Prepayment of the Note | $ 50,000 | $ 50,000 | $ 100,000 | |||||||
Loss on an extinguishment | $ 689,621 | $ 3,570,366 |
CONVERTIBLE BRIDGE LOANS - AT_2
CONVERTIBLE BRIDGE LOANS - AT FAIR VALUE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jul. 26, 2022 | Jun. 30, 2022 | |
Exercise price | $ 0.09 | ||||
Interest expenses | $ 3,258 | ||||
Convertible notes payable, aggregate face value | $ 270,000 | $ 270,000 | $ 250,000 | ||
Between January 13, 2023 and March 31, 2023 [Member] | |||||
Exercise price | $ 0.09 | $ 0.09 | |||
New warrant to purchase shares of Common Stock | 2,700,000 | ||||
Conversion price | $ 0.09 | $ 0.09 | |||
Prepayment of the Note | $ 121,316 | ||||
Interest expenses | $ 3,258 | $ 0 | |||
Fair value of Convertible Bridge Loans | 817 | $ 0 | |||
Convertible notes payable, aggregate face value | $ 185,810 | $ 185,810 | $ 0 | ||
Interest rate | 10% | 10% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Convertible Bridge Loans | $ 185,810 | $ 0 |
Fair Value Inputs Level 2 [Member] | ||
Convertible Bridge Loans | 0 | 0 |
Fair Value Inputs Level 1 [Member] | ||
Convertible Bridge Loans | 0 | 0 |
Fair Value Inputs Level 3 [Member] | ||
Convertible Bridge Loans | $ 185,810 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) | 9 Months Ended |
Mar. 31, 2023 $ / shares | |
Inception Dates [Member] | Minimum [Member] | |
Risk-adjusted interest rate | 4.32% |
Effective contractual conversion rates | $ 0.09 |
Contractual term to maturity | 4 months 24 days |
Volatility | 115% |
Quoted market price on valuation date | $ 0.027 |
Inception Dates [Member] | Maximum [Member] | |
Risk-adjusted interest rate | 5.14% |
Contractual term to maturity | 1 year |
Volatility | 135% |
Quoted market price on valuation date | $ 0.05 |
Effective contractual conversion rates | $ 0.012 |
Quarter Ended [Member] | |
Volatility | 135% |
Quoted market price on valuation date | $ 0.028 |
Quarter Ended [Member] | Minimum [Member] | |
Risk-adjusted interest rate | 4.79% |
Effective contractual conversion rates | $ 0.09 |
Contractual term to maturity | 6 months |
Quarter Ended [Member] | Maximum [Member] | |
Risk-adjusted interest rate | 4.94% |
Effective contractual conversion rates | $ 0.012 |
Contractual term to maturity | 9 months 18 days |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | ||||
Balances at beginning of period | $ 0 | |||
Convertible Bridge Loans | 189,885 | |||
Interest accruals | 3,258 | |||
Decrease (increase) in fair value of convertible bridge loans | $ (817) | $ 0 | (817) | $ 0 |
Balances at end of period | $ 185,810 | $ 185,810 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Keystone Business Development Partners [Member] | |||
Consulting fees | $ 20,000 | $ 22,500 | |
Accrued liability | 5,000 | $ 7,000 | |
Ancient Investments, LLC | |||
Consulting fees | 150,000 | 134,000 | |
Accrued liability | 15,000 | 22,000 | |
Edward DeFeudis | |||
Consulting fees | 77,000 | 92,000 | |
Accrued liability | 5,000 | 0 | |
AMP Web Services | |||
Consulting fees | 49,000 | $ 65,000 | |
Accrued liability | $ 14,000 | $ 7,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 28, 2022 | Jan. 20, 2022 | Aug. 20, 2021 | Aug. 19, 2021 | Aug. 09, 2021 | Jul. 28, 2021 | Jul. 06, 2021 | Nov. 10, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Common shares cash amount paid per meeting | $ 0 | $ 2,078,500 | |||||||||
Stock issued during priod shares new issues | 946,607,240 | 884,344,740 | |||||||||
Financial Advisory Agreements One [Member] | |||||||||||
Stock issued during priod shares new issues | 2,225,000 | ||||||||||
Issue of initial shares | 1,500,000 | ||||||||||
Issue common shares payable | 2,225,000 | ||||||||||
Cash fee percent of amount capital raised | 7% | 7% | |||||||||
Financial Advisory Agreements [Member] | |||||||||||
Issued share payable | 500,000 | ||||||||||
Financing fees description | Pay a financing fee of 1.5% of gross proceeds received by the Company up to $100,000,000; a financing fee of 1.25% of gross proceeds received by the Company from $100,000,000-$200,000,000, and a financing fee of 1% of gross proceeds received by the Company over $200,000,000 | ||||||||||
M A Description | Pay a cash fee for entering into a transaction including, without limitation, a merger, acquisition or sale of stock or assets equal to one- and one-half percent (1.5%), or in the event a transaction is consummated with a party that was in communication with the Company prior to the date of this contract, then the fee shall equal one half percent (0.5%). | M&A fee of 1.5% of the value of a business or asset sold up to $50,000,000; an M&A fee of 1.25% of value of a business or asset sold from $50,000,000-$100,000,000, an M&A fee of 1% of value of a business or asset sold from $100,000,000-$200,000,000, and an M&A fee of 0.5% of value of a business or asset sold over $200,000,000 | |||||||||
Advisory Board [Member] | |||||||||||
Common shares cash amount paid per meeting | $ 2,500 | $ 5,000 | $ 2,500 | $ 2,500 | $ 2,500 | $ 2,500 | |||||
Stock issued during priod shares new issues | 150,000 | 250,000 | 100,000 | 50,000 | 250,000 | 500,000 | 500,000 | ||||
Additional bonus paid common shares issued for services | $ 25,000 | $ 25,000 | $ 25,000 | ||||||||
Warrant options to common shares | 5,000,000 | 5,000,000 | 10,000,000 | ||||||||
Common stock shares issuedsold price per share | $ 0.12 | $ 0.12 | |||||||||
Common share opened a strategic bonus | 25,000 | 25,000 | 5,000,000 | 250,000 | |||||||
Advisory Board [Member] | July 1 2021 [Member] | |||||||||||
Common shares cash amount paid per meeting | $ 2,500 | ||||||||||
Stock issued during priod shares new issues | 100,000 | ||||||||||
Additional bonus paid common shares issued for services | $ 25,000 | ||||||||||
Warrant options to common shares | 2,250,000 | 4,000,000 | 1,000,000 | ||||||||
Common stock shares issuedsold price per share | $ 0.12 | $ 0.12 | $ 0.12 | ||||||||
Average market price | 25% | ||||||||||
Option to purchase shares | $ 5,000,000 |
EQUITY (Details)
EQUITY (Details) - Stock Option [Member] | 9 Months Ended |
Mar. 31, 2023 $ / shares | |
Exercise price | $ 0.12 |
Maximum [Member] | |
Quoted market price on valuation date | $ 0.23 |
Range of expected term | 2 years 5 months 26 days |
Range of interest rate | 0.47% |
Range of equivalent volatility | 275.73% |
Minimum [Member] | |
Quoted market price on valuation date | $ 0.169 |
Range of expected term | 1 year 6 months 18 days |
Range of interest rate | 0.20% |
Range of equivalent volatility | 215.12% |
EQUITY (Details 1)
EQUITY (Details 1) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Relative fair values | $ 134,927 | |
Warrants Issued with convertible notes [Member] | ||
Relative fair values | $ 2,777,081 | |
Shares indexed to common stock | 105,512,161 | |
Contractual term to maturity | 5 years | |
Warrants Issued with convertible notes [Member] | Minimum [Member] | ||
Warrant exercise price | $ 0.025 | |
Warrants Issued with convertible notes [Member] | Maximum [Member] | ||
Warrant exercise price | $ 0.1187 | |
Warrants Issued with convertible bridge notes [Member] | ||
Relative fair values | $ 121,316 | |
Shares indexed to common stock | 2,700,000 | |
Contractual term to maturity | 5 years | |
Warrant exercise price | $ 0.021 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Jul. 13, 2022 | Jul. 11, 2022 | Mar. 17, 2023 | Oct. 24, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 27, 2021 | Feb. 15, 2021 | |
Common stock authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||||||||||||
Common stock shares par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||||||
Common stock shares issued | 381,933,144 | 381,933,144 | 365,239,001 | |||||||||||||
Common stock shares outstanding | 381,933,144 | 381,933,144 | 365,239,001 | |||||||||||||
Shares issued for common stock in exchange for the inducement | 845,936 | |||||||||||||||
Conversion of Stock in Principle amount | $ 167,550 | |||||||||||||||
Conversion of Stock in accured interest | 4,985 | |||||||||||||||
Loss on an extinguishment | $ 0 | $ (3) | $ (4,259,987) | $ (536) | $ 535 | |||||||||||
Common stock issued for prior period conversions of principal and interest | 10,598,544 | |||||||||||||||
Conversion of convertible notes payable | $ 270,000 | $ 270,000 | $ 250,000 | |||||||||||||
Accrued interest | $ 3,749 | |||||||||||||||
Common stock share issued for conversion | 4,229,680 | |||||||||||||||
Share issued for exchange conversion, shares | 1,000,000 | 5,000,000 | 10,237,000 | 7,138,000 | ||||||||||||
Conversion of Series A Preferred to Common Stock, shares | 1,000 | 500 | 10,237 | 7,138 | ||||||||||||
Aggregate relative fair value | $ 134,927 | |||||||||||||||
Stock issued during period shares issued for services | 457,143 | 4,685,615 | ||||||||||||||
Stock issued during period value issued for services | $ 48,000 | $ 48,000 | $ 79,750 | $ 116,104 | $ 541,100 | $ 761,954 | ||||||||||
Share sold during period, shares | 39,366,666 | |||||||||||||||
Share sold during period, value | $ 2,078,500 | |||||||||||||||
Aggregate gross proceeds on exercise of warrant | $ 128,550 | |||||||||||||||
Number of warrants exercised | 4,308,600 | |||||||||||||||
Stock issued during priod shares new issues | 946,607,240 | 884,344,740 | ||||||||||||||
Common shares issued during period value | $ 410,000 | $ 1,668,500 | ||||||||||||||
Common shares issued during period value | $ 0 | $ 2,078,500 | ||||||||||||||
Common shares issued during period shares | 769,395,000 | 769,895,000 | ||||||||||||||
American Aviation Technologies LLC [Member] | ||||||||||||||||
Preferred stock, shares rescinded | 1,250,001 | 990,000 | ||||||||||||||
Spider Investments, LLC | ||||||||||||||||
Share returned to treasury | 41,000 | |||||||||||||||
Subscription Agreement [Member] | ||||||||||||||||
Stock issued during priod shares new issues | 250,000 | |||||||||||||||
Common shares issued during period value | $ 43,753 | |||||||||||||||
CEO | ||||||||||||||||
Preferred stock shares issued | 1,000,000 | |||||||||||||||
Warrants [Member] | ||||||||||||||||
Aggregate gross proceeds on exercise of warrant | $ 128,550 | |||||||||||||||
Number of warrants exercised | 4,305,000 | |||||||||||||||
Number of warrants Outstanding | 108,212,161 | 108,212,161 | 55,512,161 | |||||||||||||
Wighted average remaining useful life of warrants | 4 years | 4 years | ||||||||||||||
Common Stock To Be Issued [Member] | ||||||||||||||||
Stock issued during period shares issued for services | 250,000 | |||||||||||||||
Stock issued during period value issued for services | $ 45,950 | |||||||||||||||
Common Stock To Be Issued [Member] | Tranche One [Member] | ||||||||||||||||
Price per share | $ 0.03 | |||||||||||||||
Common shares issued during period value | $ 6,000 | |||||||||||||||
Common shares issued during period shares | 200,000 | |||||||||||||||
Stock Option [Member] | ||||||||||||||||
Number of shares Options outstanding | 21,250,000 | 21,250,000 | ||||||||||||||
Number of shares Stock options exercisable | 18,031,250 | 18,031,250 | ||||||||||||||
Stock options weighted average remaining term | 1 year 2 months 1 day | |||||||||||||||
Compensation expense | $ 642,492 | $ 1,887,545 | ||||||||||||||
Fair value of stock option | $ 3,964,207 | |||||||||||||||
Stock options issued | 21,250,000 | |||||||||||||||
Exercise price | $ 0.12 | |||||||||||||||
Total unrecognized compensation | $ 59,624 | $ 59,624 | ||||||||||||||
Series B Preferred Shares [Member] | ||||||||||||||||
Preferred stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||
Preferred stock shares par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||||||
Preferred stock shares designated | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||
Preferred stock shares issued | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||
Preferred stock shares outstanding | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||
Series A Preferred Stock shares [Member] | ||||||||||||||||
Share issued for exchange conversion, shares | 1,000,000 | 5,000,000 | 10,237,000 | |||||||||||||
Conversion of Series A Preferred to Common Stock, shares | 1,000 | 500 | 10,237 | |||||||||||||
Preferred stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||
Preferred stock shares par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||||||
Preferred stock shares designated | 3,500,000 | 3,500,000 | 3,500,000 | |||||||||||||
Voting description | 100 votes to every one share of common stock | |||||||||||||||
Conversion description | 1:1,000 | |||||||||||||||
Preferred stock shares issued | 769,395 | 769,395 | 781,132 | |||||||||||||
Preferred stock shares outstanding | 769,395 | 769,395 | 781,132 |
NONCONTROLLING INTEREST (Detail
NONCONTROLLING INTEREST (Details Narrative) - American Aviation Technologies LLC [Member] | May 12, 2021 shares |
Return of total membership units | 3,600,000 |
Ownership reduced percentage | 64% |