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Xeriant (XERI)

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SEC
Table of Contents

Cover

Cover - shares9 Months Ended
Mar. 31, 2021May 17, 2021
Cover [Abstract]
Entity Registrant NameXERIANT, INC.
Entity Central Index Key0001481504
Document Type10-Q
Amendment Flagfalse
Current Fiscal Year End Date--06-30
Entity Small Businesstrue
Entity Shell Companyfalse
Entity Emerging Growth Companyfalse
Entity Current Reporting StatusYes
Document Period End DateMar. 31,
2021
Entity Filer CategoryNon-accelerated Filer
Document Fiscal Period FocusQ3
Document Fiscal Year Focus2021
Entity Common Stock Shares Outstanding287,807,041
Document Quarterly Reporttrue
Document Transition Reportfalse
Entity Interactive Data CurrentYes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)Mar. 31, 2021Jun. 30, 2020
Current assets
Cash $ 1,506,566 $ 38,893
Deposits62,000 0
Prepaids14,351 13,893
Total current assets1,582,917 52,786
Operating lease right-of-use asset178,786 206,111
Total assets1,761,703 258,897
Current liabilities
Accounts payable and accrued liabilities18,740 27,621
Accrued liabilities, related party27,000 9,000
Convertible notes payable, net of discount102,920 32,734
Lease liability, current41,165 36,963
Total current liabilities189,825 106,318
Lease liability, long-term152,370 183,803
Total liabilities342,195 290,121
Commitments and contingencies (Note 9)0 0
Stockholders' deficit
Common stock, $0.00001 par value; 5,000,000,000 shares authorized; 283,875,576 and 69,584,149 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively2,836 696
Common stock to be issued298,000 372,397
Additional paid in capital3,757,847 379,971
Accumulated deficit(2,639,183)(784,319)
Total stockholders' deficit1,419,508 (31,224)
Total liabilities and stockholders' deficit1,761,703 258,897
Series A Preferred Stock [Member]
Stockholders' deficit
Series A Preferred stock, $0.00001 par value; 100,000,000 authorized; 3,500,000 designated; 793,279 and 3,113,638 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively $ 8 $ 31

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / sharesMar. 31, 2021Jun. 30, 2020
Stockholders' deficit
Common stock, shares par value $ 0.00001 $ 0.00001
Common stock, shares authorized5,000,000,000 500,000,000
Common stock, shares issued283,875,576 69,584,149
Common stock, shares outstanding283,875,576 69,584,149
Series A Preferred Stock [Member]
Stockholders' deficit
Preferred stock, shares par value $ 0.00001 $ 0.00001
Preferred stock, shares authorized100,000,000 100,000,000
Preferred stock, shares designated3,500,000 3,500,000
Preferred stock, shares issued793,279 3,113,638
Preferred stock, shares outstanding793,279 3,113,638

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Operating expenses:
Sales and marketing $ 0 $ 0 $ 1,000,000 $ 0
General and administrative141,897 73,409 242,445 141,945
Professional fees32,160 48,250 67,397 114,668
Consulting fees - related party54,500 0 132,500 0
Research and development0 0 0 6,339
Total operating expenses228,557 121,659 1,442,342 262,952
Operating loss(228,557)(121,659)(1,442,342)(262,952)
Other expenses:
Amortization of debt discount(103,225)(152,423)(215,635)(286,375)
Amortization of debt discount, related party0 (12,977)(5,000)(27,242)
Interest expense(2,661)(4,545)(4,857)(8,609)
Interest expense, related party0 (1,356)(76)(3,979)
Loss on settlement of debt0 0 (186,954)0
Total other (expense)(105,886)(171,301)(412,522)(326,205)
Net loss $ (334,443) $ (292,960) $ (1,854,864) $ (589,157)
Net loss per common share - basic and diluted $ 0 $ 0 $ (0.01) $ (0.01)
Weighted average number of common shares outstanding - basic and diluted234,451,953 69,584,149 176,685,459 69,584,149

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED) - USD ($)TotalPreferred StockCommon StockAdditional Paid-In CapitalCommon Stock To Be IssuedRetained Earnings (Accumulated Deficit)
Balance, shares at Jun. 30, 2019
Balance, amount at Jun. 30, 2019 $ (33,849) $ 0 $ 0 $ 50,907 $ 0 $ (84,756)
Effect of reverse merger, shares3,113,637 69,584,149
Effect of reverse merger, amount(49,902) $ 31 $ 696 (50,629)0
Net Loss(19,166) $ 0 $ 0 0 0 (19,166)
Balance, shares at Sep. 30, 20193,113,637 69,584,149
Balance, amount at Sep. 30, 2019(102,917) $ 31 $ 696 278 0 (103,922)
Balance, shares at Jun. 30, 2019
Balance, amount at Jun. 30, 2019(33,849) $ 0 $ 0 50,907 0 (84,756)
Net Loss(589,157)
Balance, shares at Mar. 31, 20203,113,637 69,584,149
Balance, amount at Mar. 31, 2020(169,976) $ 31 $ 696 367,471 135,739 (673,913)
Balance, shares at Sep. 30, 20193,113,637 69,584,149
Balance, amount at Sep. 30, 2019(102,917) $ 31 $ 696 278 0 (103,922)
Net Loss(277,031)0 0 0 0 (277,031)
Fair value of beneficial conversion feature associated with convertible debt318,543 $ 0 $ 0 318,543 0 0
Balance, shares at Dec. 31, 20193,113,637 69,584,149
Balance, amount at Dec. 31, 2019(61,405) $ 31 $ 696 318,821 0 (380,953)
Net Loss(292,960)0 0 0 (292,960)
Fair value of beneficial conversion feature associated with convertible debt48,650 0 0 48,650 0
Convertible notes and accrued interest converted into common stock135,739 $ 0 $ 0 0 135,739 0
Balance, shares at Mar. 31, 20203,113,637 69,584,149
Balance, amount at Mar. 31, 2020(169,976) $ 31 $ 696 367,471 135,739 (673,913)
Balance, shares at Jun. 30, 20203,113,638 69,584,149
Balance, amount at Jun. 30, 2020(31,224) $ 31 $ 696 379,971 372,397 (784,319)
Net Loss(327,072)0 0 0 0 (327,072)
Fair value of beneficial conversion feature associated with convertible debt42,893 0 0 42,893 0 0
Convertible notes and accrued interest converted into common stock51,145 $ 0 $ 0 0 51,145 0
Shares reclassed from common stock to be issued, shares 112,847,466
Shares reclassed from common stock to be issued, amount0 $ 0 $ 1,127 371,270 (372,397)0
Conversion of Series A Preferred to Common Stock, shares(39,358)39,358,000
Conversion of Series A Preferred to Common Stock, amount0 $ 0 $ 393 (393)0 0
Issuance of warrants with convertible notes36,407 $ 0 $ 0 36,407 0 0
Stock issued for services, shares 4,090,909
Stock issued for services, amount200,454 $ 0 $ 40 200,414 0 0
Balance, shares at Sep. 30, 20203,074,280 225,880,524
Balance, amount at Sep. 30, 2020(27,397) $ 31 $ 2,256 1,030,562 51,145 (1,111,391)
Balance, shares at Jun. 30, 20203,113,638 69,584,149
Balance, amount at Jun. 30, 2020(31,224) $ 31 $ 696 379,971 372,397 (784,319)
Net Loss(1,854,864)
Balance, shares at Mar. 31, 2021793,279 283,875,576
Balance, amount at Mar. 31, 20211,419,508 $ 8 $ 2,836 3,757,847 298,000 (2,639,183)
Balance, shares at Sep. 30, 20203,074,280 225,880,524
Balance, amount at Sep. 30, 2020(27,397) $ 31 $ 2,256 1,030,562 51,145 (1,111,391)
Net Loss(1,193,349)0 0 0 0 (1,193,349)
Fair value of beneficial conversion feature associated with convertible debt6,612 0 0 6,612 0 0
Convertible notes and accrued interest converted into common stock78,714 0 0 0 78,714 0
Issuance of warrants with convertible notes6,388 $ 0 $ 0 6,388 0 0
Stock issued for services, shares 20,300,000
Stock issued for services, amount1,013,200 $ 0 $ 203 1,012,997 0 0
Sale of common stock, shares 3,400,000
Sale of common stock, amount51,000 $ 0 $ 34 50,966 0 0
Issuance of warrants for services13,909 $ 0 $ 0 13,909 0 0
Balance, shares at Dec. 31, 20203,074,280 249,580,524
Balance, amount at Dec. 31, 2020(50,923) $ 31 $ 2,493 2,121,434 129,859 (2,304,740)
Net Loss(334,443)0 0 0 0 (334,443)
Fair value of beneficial conversion feature associated with convertible debt122,453 $ 0 $ 0 122,453 0 0
Shares reclassed from common stock to be issued, shares 19,595,442
Shares reclassed from common stock to be issued, amount(4) $ 0 $ 195 129,660 (129,859)0
Issuance of warrants with convertible notes75,097 $ 0 $ 0 75,097 0 0
Stock issued for services, shares 150,000
Stock issued for services, amount62,050 $ 0 $ 2 62,048 0 0
Sale of common stock, shares 9,991,667
Sale of common stock, amount1,497,000 $ 0 $ 100 1,198,900 298,000 0
Issuance of warrants for services24,422 $ 0 $ 0 24,422 0 0
Cancellation of Series A Preferred shares, shares(2,240,000)
Cancellation of Series A Preferred shares, amount0 $ (22) $ 0 22 0 0
Cancellation of Series A Preferred shares, share(41,001)
Cancellation of Series A Preferred shares, amount0 $ (1) $ 0 1 0 0
Conversion of convertible notes and accrued interest, shares 4,557,943
Conversion of convertible notes and accrued interest, amount23,856 $ 0 $ 46 23,810 0 0
Balance, shares at Mar. 31, 2021793,279 283,875,576
Balance, amount at Mar. 31, 2021 $ 1,419,508 $ 8 $ 2,836 $ 3,757,847 $ 298,000 $ (2,639,183)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)9 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash Flows from Operating Activities
Net loss $ (1,854,864) $ (589,157)
Adjustments to reconcile net loss to net cash used by operating activities:
Stock compensation1,113,583 0
Amortization of debt discount215,635 286,375
Amortization of debt discount, related party5,000 27,242
Loss on settlement of debt186,954 0
Operating lease right of use asset93 9,830
Changes in operating assets & liabilities
Deposits(12,546)
Prepaid expenses(62,458)0
Accounts payable and accrued expenses25,880 41,725
Accrued expenses, related parties0 (1,143)
Net cash used by operating activities(370,177)(237,674)
Cash Flows from Financing Activities
Sale of common stock1,548,000 0
Proceeds from convertible notes payable289,850 339,950
Proceeds from convertible notes payable, related party0 33,000
Net cash provided by financing activities1,837,850 372,950
Increase in Cash1,467,673 135,276
Cash at beginning of period38,893 3,029
Cash at end of period1,506,566 138,305
Supplemental Cash Flow Information
Cash paid for interest0 0
Cash paid for income taxes0 0
Non-cash investing and financing activities:
Conversion of convertible notes payable and accrued interest130,410 135,739
Warrants issued with convertible notes payable117,892 0
Beneficial conversion feature arising from convertible notes payable $ 171,958 $ 48,650

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS9 Months Ended
Mar. 31, 2021
ORGANIZATION AND NATURE OF BUSINESS
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESSXeriant, Inc. (“Xeriant”) is a holding and operating company focused on acquiring, developing and commercializing revolutionary, eco-friendly technologies and advanced materials, with applications in aerospace, including innovative aircraft concepts, namely those capable of vertical takeoff and landing (VTOL). The Company is pursuing an active role in the “third wave of aeronautics,” which includes the electrification of aerial transport, advancements in structural design, propulsion systems, materials, sensors, artificial intelligence (AI), batteries, high-speed connectivity, and the development and integration of specialized aircraft with greatly reduced logistical footprints as well as the infrastructure needed to facilitate these aircraft. Xeriant is located at the Research Park at Florida Atlantic University in Boca Raton, Florida adjacent to the Boca Raton Airport, and trades on OTC Markets under the stock symbol, XERI. The Company was incorporated in Nevada on December 18, 2009. On April 16, 2019, Xeriant entered into a Share Exchange Agreement with American Aviation Technologies, LLC (“AAT”), an aircraft design and development company focused on the emerging segment of the aviation industry of autonomous and semi-autonomous vertical take-off and landing (VTOL) unmanned aerial vehicles (UAVs). On September 30, 2019, the acquisition of AAT closed and AAT became a wholly owned subsidiary of Xeriant. On June 22, 2020, the name of the Company was changed to Xeriant, Inc. in the State of Nevada and subsequently approved by FINRA effective July 30, 2020 for the name and symbol change.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES9 Months Ended
Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation The unaudited condensed consolidated financial statements of the Company and the accompanying notes included in this Quarterly Report are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the unaudited consolidated condensed financial statements have been included. Such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. These financial statements should be read in conjunction with the company’s latest annual financial statements. Principles of Consolidation The condensed consolidated unaudited financial statements include the accounts of Xeriant, Inc. and its wholly owned subsidiary American Aviation Technologies, LLC, collectively referred to as the Company. All material intercompany accounts, transactions and profits were eliminated in consolidation. These financial statements should be read in conjunction with the company’s latest annual financial statements. 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. Deferred Taxes 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. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse and are considered immaterial. As of March 31, 2021 and June 30, 2020, there are no deferred tax assets. 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. Accounts Receivable and Allowance for Doubtful Accounts The Company monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, and other information. The allowance for doubtful accounts is estimated based on an assessment of the Company's ability to collect on customer accounts receivable. There is judgment involved with estimating the allowance for doubtful accounts and if the financial condition of the Company's customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against revenues. The Company writes-off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues its collection. The allowance for doubtful accounts is created by forming a credit balance, which is deducted from the total receivables balance in the balance sheet. As of March 31, 2021 and June 30, 2020 there are no accounts receivable. Revenue Recognition Revenue includes product sales. The Company recognizes revenue from product sales in accordance with Topic 606 "Revenue Recognition in Financial Statements" which considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the services have been rendered and all required milestones achieved, (iii) the sales price is fixed or determinable, and (iv) Collectability is reasonably assured. For the nine months ended March 31, 2021 and 2020, the Company had no revenue. 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 nine months ended March 31, 2021, the Company recorded a BCF in the amount of $171,958. Fair Value of Financial Instruments Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10") requires disclosure of the fair value of certain financial instruments. The carrying value of cash, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed. The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10") and Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10"), which permits entities to choose to measure many financial instruments and certain other items at fair value. Research and Development Expenses Expenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $0 and $6,339 for the nine months ended March 31, 2021 and 2020, respectively. Advertising, Marketing and Public Relations The Company expenses advertising and marketing costs as they are incurred. There were no advertising costs during the nine months ended March 31, 2021 and 2020. Offering Costs Costs incurred in connection with raising capital by the issuance of common stock are recorded as contra equity and deducted from the capital raised. There were no offering costs during the nine months ended March 31, 2021 and 2020. The Company has adopted FASB ASC 740-10, Accounting for Income Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement. The ASU will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted, and is applicable on a modified retrospective basis with various optional practical expedients. The Company has assessed the impact of this standard. The Company entered into a new lease agreement commencing on November 1, 2019 and implemented this guidance on November 1, 2019. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses a diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. On June 20, 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

DEPOSIT ON JOINT VENTURE

DEPOSIT ON JOINT VENTURE9 Months Ended
Mar. 31, 2021
DEPOSIT ON JOINT VENTURE
NOTE 3 - DEPOSIT ON JOINT VENTUREOn January 8, 2021, the Company entered into a binding memorandum of understanding with Xeriant Europe s.r.o. for a joint venture (“JV”). The Company paid a total of $62,000 in deposits to Xeriant Europe in February and March of 2021 for patent related fees. The purpose of the JV with Xeriant Europe is to generate revenue by sourcing and accelerating breakthrough technologies, primarily from Central Europe, that can be commercialized and introduced to new markets, such as the United States. As of March 31, 2021, the joint venture agreement had not been finalized.

CONCENTRATION OF CREDIT RISKS

CONCENTRATION OF CREDIT RISKS9 Months Ended
Mar. 31, 2021
CONCENTRATION OF CREDIT RISKS
NOTE 4 - CONCENTRATION OF CREDIT RISKSThe 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. At March 31, 2021, the Company had $1,256,566 in excess of FDIC insurance.

OPERATING LEASE RIGHTOFUSE ASSE

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY9 Months Ended
Mar. 31, 2021
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY
NOTE 5 - OPERATING LEASE RIGHT-OF-USE ASSET AND OPERATING LEASE LIABILITYThe 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. The following table illustrates the base rent amounts over the term of the lease: Base Rent Periods Rent February 1, 2020 to October 1, 2020 $ 4,367 November 1, 2020 to October 1, 2021 $ 4,498 November 1, 2021 to October 1, 2022 $ 4,633 November 1, 2021 to October 1, 2022 $ 4,771 November 1, 2023 to October 1, 2024 $ 4,915 November 1, 2024 to January 1, 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, 2021 Office lease $ 220,448 Less: accumulated amortization (41,662 ) Right-of-use asset, net $ 178,786 Operating lease liability is summarized below: March 31, 2021 Office lease $ 193,535 Less: current portion (41,165 ) Long term portion 152,370 Maturity of the lease liability is as follows: Fiscal year ending June 30, 2021 $ 14,370 Fiscal year ending June 30, 2022 58,635 Fiscal year ending June 30, 2023 60,392 Fiscal year ending June 30, 2024 62,201 Fiscal year ending June 30, 2025 37,112 232,710 Present value discount (39,175 ) Lease liability $ 193,535

EXCHANGE AGREEMENT

EXCHANGE AGREEMENT9 Months Ended
Mar. 31, 2021
EXCHANGE AGREEMENT
NOTE 6 - EXCHANGE AGREEMENTOn April 16, 2019, Xeriant, Inc., and the members of American Aviation Technologies, LLC (“AAT”) entered into a Share Exchange Agreement (“Agreement”). The agreement, which became effective on September 30, 2019, was pursuant to which the Company acquired 100% of the issued and outstanding membership units in exchange for the issuance of shares of the Company’s Series A Preferred Stock constituting 86.39% of the total voting power of the Company’s capital stock to be outstanding upon closing, after giving effect to the consummation of concurrent debt settlement and other capital stock issuances but before the issuance of shares of capital stock for investor relations purposes. As a result of the Exchange Agreement, AAT became a wholly owned subsidiary of the Company. On September 30, 2019 just prior to the exchange, Xeriant issued 170,000 shares of preferred stock as compensation and 193,637 shares of preferred stock in satisfaction of $2,608,224 in liabilities.

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE9 Months Ended
Mar. 31, 2021
CONVERTIBLE NOTES PAYABLE
NOTE 7 - CONVERTIBLE NOTES PAYABLEThe carrying values of convertible notes payable, net of discount, as of March 31, 2021 and June 30, 2020 was $102,920 and $32,734, respectively, as summarized below. March 31, June 30, Convertible Notes Payable 2021 2020 Convertible notes payable issued March 2, 2020 (6% interest) $ - $ 22,000 Convertible notes payable issued March 3, 2020 (6% interest) - 10,000 Convertible notes payable issued March 7, 2020 (6% interest) - 1,650 Convertible notes payable issued March 10, 2020 (6% interest) - 15,000 Convertible notes payable issued April 9, 2020 (6% interest) - 1,000 Convertible notes payable issued April 23, 2020 (6% interest) - 2,000 Convertible notes payable issued May 11, 2020 (6% interest) - 1,500 Convertible notes payable issued December 2, 2020 (6% interest) 3,000 - Convertible notes payable issued January 4, 2021 (6% interest) 20,000 8,000 Convertible notes payable issued January 5, 2021 (6% interest) 25,000 8,000 Convertible notes payable issued January 11, 2021 (6% interest) 142,550 8,000 Convertible notes payable issued January 19, 2021 (6% interest) 10,000 - Total face value 200,550 61,150 Less unamortized discount (97,630 ) (28,416 ) Carrying value $ 102,920 $ 32,734 Notes issued between September 27, 2019 and July 20, 2020 Between September 27, 2019 and July 20, 2020, AAT issued convertible notes payable with an aggregate face value of $357,750 with a coupon rate of 6%. The notes have a maturity date of six months. The agreements provided that in the event AAT is merged into Xeriant (the “Company”), at any time prior to the Maturity Date, 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 $.0033 per share. In the event the holder does not elect to convert the note prior to maturity, the note will automatically convert to common stock at a price of $.0033 per share. The Company evaluated the agreement under ASC 815 Derivatives and Hedging (“ASC 815”). ASC 815 generally requires the analysis embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. None of the embedded terms required bifurcation and liability classification. However, 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 a beneficial conversion feature in the amount of $357,750 related to these notes. Between March 27, 2020 and November 10, 2020, holders of the convertible notes converted $344,450 in principal and $10,336 in accrued interest into 107,510,927 shares of common stock. Notes issued between August 10, 2020 and January 19, 2021 Between August 10, 2020 and January 19, 2021, the Company issued convertible notes payable with an aggregate face value of $284,550 with a coupon rate of 6%. The notes have a maturity date of 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 $284,550, $87,000 is convertible at $0.025 per share, $180,550 is convertible at $.03 per share, and the remaining $17,000 is convertible at $0.003 per share. The Company evaluated the agreement under ASC 815 Derivatives and Hedging (“ASC 815”). ASC 815 generally requires the analysis embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. None of the embedded terms required bifurcation and liability classification. In connection with the notes, the Company issued warrants indexed to an aggregate 8,498,333 shares of common stock. The warrants have a term of two years and an exercise price of $.025. 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 value of $156,225. 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. After the allocation of $156,225 to the warrants, the remaining $169,956 in proceeds resulted in a beneficial conversion feature recorded in additional paid-in capital. Both the BCF and warrants resulted in a debt discount and are amortized over the life of the note. Amortization of debt discount and interest expense related to all notes For the nine months ended March 31, 2021 and 2020, the Company recorded $220,636 and $285,804 in amortization of debt discount related to the notes. For the nine months ended March 31, 2021 and 2020, the Company recorded $4,933 and $3,979 in interest expense related to the notes, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS9 Months Ended
Mar. 31, 2021
RELATED PARTY TRANSACTIONS
NOTE 8 - RELATED PARTY TRANSACTIONSConsulting fees During the nine months ended March 31, 2021, the Company paid Ancient Investments, LLC, a Company owned by the Company’s CEO, Keith Duffy and the Company’s Executive Director of Corporate Operations, Scott Duffy, $66,000 for consulting services. During the nine months ended March 31, 2021, the Company paid AMP Web Services, a Company owned by the Company’s CTO, Pablo Lavigna, $32,500 for consulting services. On August 26, 2020, the Company issued 4,090,909 shares of common stock for payment of $13,500 for services performed in May, June and July 2020. As of March 31, 2021, $4,500 is due for March services and recorded in accrued liabilities, as a related party. During the nine months ended March 31, 2021, the Company owed $22,500 to Keystone Business Development Partners, a Company owned by the Company’s CFO, Brian Carey. Of the amount owed, $22,500 is recorded in accrued liabilities, related party and the remaining $7,500 is recorded in accounts payable. Convertible notes On August 25, 2020, the Company issued a convertible note payable with a face value of $5,000 with a coupon rate of 6% to Keystone Business Development Partners, a Company owned by the Company’s CFO, Brian Carey. The note has a maturity date of three 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 $.025 per share. In the event the holder does not elect to convert the note prior to maturity, the note will automatically convert to common stock at a price of $.025 per share. The note was converted into 203,025 common shares on November 25, 2020, which were issued on February 8, 2021. The Company evaluated the agreement under ASC 815 Derivatives and Hedging (“ASC 815”). ASC 815 generally requires the analysis embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. None of the embedded terms required bifurcation and liability classification. In connection with the note, the Company issued warrants indexed to an aggregate 200,000 shares of common stock. The warrants have a term of two years and an exercise price of $.025. 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 relative fair value of $2,461. 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. After the allocation of $2,461 to the warrants, the remaining $2,539 in proceeds resulted in a beneficial conversion feature recorded in additional paid-in capital. Both the BCF and warrants resulted in a debt discount and are amortized over the life of the note. For the nine months ended March 31, 2021, the Company recorded $5,000 in amortization of debt discount related to the note. For the nine months ended March 31, 2021, the Company recorded $76 in interest expense related to the note. On November 25, 2020, Keystone Business Development Partners converted $5,000 in principal and $76 in accrued interest into 203,024 shares of common stock.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES9 Months Ended
Mar. 31, 2021
COMMITMENTS AND CONTINGENCIES
NOTE 9 - COMMITMENTS AND CONTINGENCIESDuring 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

EQUITY

EQUITY9 Months Ended
Mar. 31, 2021
EQUITY
NOTE 10 - EQUITYCommon Stock During the nine months ended March 31, 2021, the Company issued 112,847,466 shares of common stock for the conversion of $359,300 in principal and $13,097 in accrued interest. During the nine months ended March 31, 2021, the Company issued 24,153,385 shares of common stock for the conversion of $150,450 in principal and $3,260 in accrued interest. On August 26, 2020, the Company issued 4,090,909 shares of common stock for payment of $13,500 for services performed in May, June and July 2020. The shares were valued at $200,454 or $0.049 per share. As of result the Company recorded a loss on settlement in debt in the amount of $186,954. During the nine months ended March 31, 2021, certain holders of preferred stock converted 39,358 shares into 39,358,000 shares of common stock. On October 30, 2020, the Company issued 300,000 shares of common stock to an advisory board member for services. The shares were valued at $13,200 or $0.044 per share. On November 17, 2020, the Company sold 1,700,000 shares of common for $25,500, or $0.015 per share. On November 24, 2020, the Company sold 1,700,000 shares of common for $25,500, or $0.015 per share. On December 1, 2020, the Company issued 2,000,000 shares of common stock for investment relation services valued at $100,000, or $0.05 per share. On December 1, 2020, the Company issued 18,000,000 shares of common stock for investment relation services valued at $900,000, or $0.05 per share. On January 29, 2021, the Company issued 50,000 shares of common stock to an advisory board member for services. The shares were valued at $25,500 or $0.51 per share. On March 22, 2021, the Company issued 50,000 shares of common stock to an advisory board member for services. The shares were valued at $13,800 or $0.28 per share. On March 22, 2021, the Company issued 50,000 shares of common stock to an advisory board member for services. The shares were valued at $22,750 or $0.46 per share. On March 22, 2021, the Company issued 9,991,667 shares for $1,199,000, or $0.12 per share. 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. During the nine months ended March 31, 2021, certain holders of preferred stock converted 39,358 shares into 39,358,000 shares of common stock. As of March 31, 2021 and June 30, 2020, the Company has 793,279 and 3,113,638 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 key man, Russell Randall, 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 25, 2021, the Certificate of Designation for the Series B Preferred was recorded by the State of Nevada. On March 27, 2021, Spider Investments, LLC returned 41,000 Series A Preferred Shares to the treasury of the Company.

GOING CONCERN MATTERS

GOING CONCERN MATTERS9 Months Ended
Mar. 31, 2021
GOING CONCERN MATTERS
NOTE 11 - GOING CONCERN MATTERSThe 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, 2021 and June 30, 2020, the Company had $1,506,566 and $38,893 in cash and $1,393,092 in working capital and $53,532 in negative working capital, respectively. For the nine months ended March 31, 2021 and 2020, the Company had a net loss of $1,854,864 and $334,443, 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS9 Months Ended
Mar. 31, 2021
SUBSEQUENT EVENTS
NOTE 12 - SUBSEQUENT EVENTSCommon stock issuances On April 1, 2021, the Company issued 2,083,334 shares for $250,000, or $0.12 per share. The $250,000 proceeds were received in March 2021. On April 26, 2021, the Company issued 1,014,798 shares of common stock for the conversion of $30,000 in principal and $443 in accrued 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. Subscription agreement On April 3, 2021, the Company entered into a subscription agreement for the sale of 833,333 shares for $100,000 or $0.12 per share. Trademark filings On May 5, 2021, Xeriant filed trademark applications with the U.S. Patent and Trademark Office under four services classes for each application, including the name “Xeriant,” the Xeriant Aerospace logo, and the tag line “Innovation Soaring.” On May 13, 2021, Xeriant filed trademark applications for the expressions “Evolution in Flight” and “Evolution of Flight” under the same classes for each application. Employment agreement On May 12, 2021, the Company executed an employment agreement with Keith Duffy to act as the Chief Executive Officer of the Company and AAT, with an annual base salary of $180,000 (subject to increases at the discretion of the Board of Directors) and the issuance of 1,000,000 Series B Preferred Shares. The Agreement provided that the term thereof commenced on May 12, 2021 and will end on December 31, 2022. Directors On May 12, 2021, the Company appointed Scott Duffy as director to fill a vacancy on the Board of Directors. On May 14, 2021, the Company appointed Michael Harper and Lisa Ruth as directors to fill two additional vacancies on the Board of Directors.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)9 Months Ended
Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of PresentationThe unaudited condensed consolidated financial statements of the Company and the accompanying notes included in this Quarterly Report are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the unaudited consolidated condensed financial statements have been included. Such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year. These financial statements should be read in conjunction with the company’s latest annual financial statements.
Principles of ConsolidationThe condensed consolidated unaudited financial statements include the accounts of Xeriant, Inc. and its wholly owned subsidiary American Aviation Technologies, LLC, collectively referred to as the Company. All material intercompany accounts, transactions and profits were eliminated in consolidation. These financial statements should be read in conjunction with the company’s latest annual financial statements.
Use of EstimatesThe 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 InstrumentsThe 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.
Deferred TaxesThe 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. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse and are considered immaterial. As of March 31, 2021 and June 30, 2020, there are no deferred tax assets.
Cash and Cash EquivalentsFor 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.
Accounts Receivable and Allowance for Doubtful AccountsThe Company monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, and other information. The allowance for doubtful accounts is estimated based on an assessment of the Company's ability to collect on customer accounts receivable. There is judgment involved with estimating the allowance for doubtful accounts and if the financial condition of the Company's customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against revenues. The Company writes-off accounts receivable against the allowance when it determines a balance is uncollectible and no longer actively pursues its collection. The allowance for doubtful accounts is created by forming a credit balance, which is deducted from the total receivables balance in the balance sheet. As of March 31, 2021 and June 30, 2020 there are no accounts receivable.
Revenue RecognitionRevenue includes product sales. The Company recognizes revenue from product sales in accordance with Topic 606 "Revenue Recognition in Financial Statements" which considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the services have been rendered and all required milestones achieved, (iii) the sales price is fixed or determinable, and (iv) Collectability is reasonably assured. For the nine months ended March 31, 2021 and 2020, the Company had no revenue.
Convertible DebenturesIf 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 nine months ended March 31, 2021, the Company recorded a BCF in the amount of $171,958.
Fair Value of Financial InstrumentsAccounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10") requires disclosure of the fair value of certain financial instruments. The carrying value of cash, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed. The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10") and Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10"), which permits entities to choose to measure many financial instruments and certain other items at fair value.
Research and Development ExpensesExpenditures for research and development are expensed as incurred. The Company incurred research and development expenses of $0 and $6,339 for the nine months ended March 31, 2021 and 2020, respectively.
Advertising, Marketing and Public RelationsThe Company expenses advertising and marketing costs as they are incurred. There were no advertising costs during the nine months ended March 31, 2021 and 2020.
Offering CostsCosts incurred in connection with raising capital by the issuance of common stock are recorded as contra equity and deducted from the capital raised. There were no offering costs during the nine months ended March 31, 2021 and 2020. The Company has adopted FASB ASC 740-10, Accounting for Income Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Recent Accounting PronouncementsIn May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In February 2016, FASB issued ASC 842 that requires lessees to recognize lease assets and corresponding lease liabilities on the balance sheet for all leases with terms of more than 12 months. The update, which supersedes existing lease guidance, will continue to classify leases as either finance or operating, with the classification determining the pattern of expense recognition in the income statement. The ASU will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted, and is applicable on a modified retrospective basis with various optional practical expedients. The Company has assessed the impact of this standard. The Company entered into a new lease agreement commencing on November 1, 2019 and implemented this guidance on November 1, 2019. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses a diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. On June 20, 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

OPERATING LEASE RIGHTOFUSE AS_2

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Tables)9 Months Ended
Mar. 31, 2021
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY
Schedule of rent periods Base Rent Periods Rent February 1, 2020 to October 1, 2020 $ 4,367 November 1, 2020 to October 1, 2021 $ 4,498 November 1, 2021 to October 1, 2022 $ 4,633 November 1, 2021 to October 1, 2022 $ 4,771 November 1, 2023 to October 1, 2024 $ 4,915 November 1, 2024 to January 1, 2025 $ 5,063
Summary of Right-of-use assets, net March 31, 2021 Office lease $ 220,448 Less: accumulated amortization (41,662 ) Right-of-use asset, net $ 178,786
Summary of Operating lease liability March 31, 2021 Office lease $ 193,535 Less: current portion (41,165 ) Long term portion 152,370 Maturity of the lease liability is as follows: Fiscal year ending June 30, 2021 $ 14,370 Fiscal year ending June 30, 2022 58,635 Fiscal year ending June 30, 2023 60,392 Fiscal year ending June 30, 2024 62,201 Fiscal year ending June 30, 2025 37,112 232,710 Present value discount (39,175 ) Lease liability $ 193,535

CONVERTIBLE NOTES PAYABLE (Tabl

CONVERTIBLE NOTES PAYABLE (Tables)9 Months Ended
Mar. 31, 2021
CONVERTIBLE NOTES PAYABLE (Tables)
Schedule of convertible notes payable March 31, June 30, Convertible Notes Payable 2021 2020 Convertible notes payable issued March 2, 2020 (6% interest) $ - $ 22,000 Convertible notes payable issued March 3, 2020 (6% interest) - 10,000 Convertible notes payable issued March 7, 2020 (6% interest) - 1,650 Convertible notes payable issued March 10, 2020 (6% interest) - 15,000 Convertible notes payable issued April 9, 2020 (6% interest) - 1,000 Convertible notes payable issued April 23, 2020 (6% interest) - 2,000 Convertible notes payable issued May 11, 2020 (6% interest) - 1,500 Convertible notes payable issued December 2, 2020 (6% interest) 3,000 - Convertible notes payable issued January 4, 2021 (6% interest) 20,000 8,000 Convertible notes payable issued January 5, 2021 (6% interest) 25,000 8,000 Convertible notes payable issued January 11, 2021 (6% interest) 142,550 8,000 Convertible notes payable issued January 19, 2021 (6% interest) 10,000 - Total face value 200,550 61,150 Less unamortized discount (97,630 ) (28,416 ) Carrying value $ 102,920 $ 32,734

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Research and development expenses $ 0 $ 0 $ 0 $ 6,339
Debt instrument, convertible, beneficial conversion feature $ 171,958

DEPOSIT ON JOINT VENTURE (Detai

DEPOSIT ON JOINT VENTURE (Details Narrative)1 Months Ended
Jan. 08, 2021USD ($)
Joint Venture [Member]
Cash deposit $ 62,000

CONCENTRATION OF CREDIT RISKS (

CONCENTRATION OF CREDIT RISKS (Details Narrative)9 Months Ended
Mar. 31, 2021USD ($)
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY
FDIC insurance $ 1,256,566

OPERATING LEASE RIGHTOFUSE AS_3

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Details)9 Months Ended
Mar. 31, 2021USD ($)
Base rent $ 4,771
November 1, 2024 to January 1, 2025 [Member]
Base rent5,063
November 1, 2021 to October 1, 2022 [Member]
Base rent4,633
November 1, 2023 to October 1, 2024 [Member]
Base rent4,915
November 1, 2020 to October 1, 2021 [Member]
Base rent4,498
February 1, 2020 to October 1, 2020 [Member]
Base rent $ 4,367

OPERATING LEASE RIGHTOFUSE AS_4

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Details 1) - USD ($)Mar. 31, 2021Jun. 30, 2020
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY
Office lease $ 220,448
Less accumulated amortization(41,662)
Right-of-use assets, net $ 178,786 $ 206,111

OPERATING LEASE RIGHTOFUSE AS_5

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Details 2) - USD ($)Mar. 31, 2021Jun. 30, 2020
OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY
Office lease $ 193,535
Less: current portion(41,165)
Long term portion152,370 $ 183,803
Maturity of the lease liability is as follows:
Fiscal year ending June 30, 202114,370
Fiscal year ending June 30, 202258,635
Fiscal year ending June 30, 202360,392
Fiscal year ending June 30, 202462,201
Fiscal year ending June 30, 202537,112
Lease liability, Gross232,710
Present value discount(39,175)
Lease liability $ 193,535

OPERATING LEASE RIGHTOFUSE AS_6

OPERATING LEASE RIGHTOFUSE ASSET AND OPERATING LEASE LIABILITY (Details Narrative)9 Months Ended
Mar. 31, 2021USD ($)
Borrowing, Interest Rate10.00%
Prepaid rent $ 4,659
Lease Agreement [Member]
Capital Leases, DescriptionThe Company leases 2,911 square feet of office space located at Innovation Centre No. 1, 3998 FAU Boulevard, Boca Raton, Florida.

EXCHANGE AGREEMENT (Details Nar

EXCHANGE AGREEMENT (Details Narrative) - USD ($)1 Months Ended
Apr. 16, 2019Mar. 31, 2021Jun. 30, 2020Sep. 30, 2019
Banjo & Matilda, Inc and American Aviation Technologies LLC [Member] | Exchange Agreement [Member]
Business Acquisition, Percentage of Voting Interests Acquired100.00%
Business Combination, consideration transferred, Equity Interest of acquirer, series A preferred stock, Percentage86.39%
Series A Preferred Stock [Member]
Preferred stock, shares issued793,279 3,113,638
Series A Preferred Stock [Member] | Xeriant [Member]
Preferred stock, shares issued as compensation170,000
Preferred stock, shares issued193,637
Liabilities $ 2,608,224

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)Mar. 31, 2021Jun. 30, 2020
Total face value $ 200,550 $ 61,150
Less unamortized discount(97,630)(28,416)
Carrying value102,920 32,734
Convertible Notes Payable [Member]
Total face value0 22,000
Convertible Notes Payable One [Member]
Total face value0 10,000
Convertible Notes Payable Two [Member]
Total face value0 1,650
Convertible Notes Payable Three [Member]
Total face value0 15,000
Convertible Notes Payable Four [Member]
Total face value0 1,000
Convertible Notes Payable Five [Member]
Total face value0 2,000
Convertible Notes Payable Six
Total face value0 1,500
Convertible Notes Payable Seven [Member]
Total face value3,000 0
Convertible Notes Payable Eight [Member]
Total face value20,000 8,000
Convertible Notes Payable Nine [Member]
Total face value25,000 8,000
Convertible Notes Payable Ten [Member]
Total face value142,550 8,000
Convertible Notes Payable Eleven [Member]
Total face value $ 10,000 $ 0

CONVERTIBLE NOTES PAYABLE (De_2

CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)3 Months Ended9 Months Ended
Mar. 31, 2021Dec. 31, 2020Sep. 30, 2020Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
Debt Instrument, Convertible, Beneficial Conversion Feature remaining $ 169,956
Convertible notes payable, net of discount $ 102,920 102,920 $ 32,734
Amortization of debt discount103,225 $ 152,423 215,635 $ 286,375
Interest expense, related party0 1,356 76 3,979
Proceeds from convertible notes payable289,850 339,950
Debt instrument converted principal amount $ 78,714 $ 51,145 $ 135,739
Additional paid in capital $ 3,757,847 $ 3,757,847 $ 379,971
Warrants [Member]
Term of warrants2 years
Exercise price $ 0.025 $ 0.025
Warrants issued8,498,333
Additional paid in capital $ 156,225 $ 156,225
Convertible Notes Payable [Member]
Amortization of debt discount220,636 285,804
Interest expense, related party285,804 $ 3,979
Convertible Notes Payable [Member] | Between September 27, 2019 and July 20, 2020 [Member]
Debt Instrument, Convertible, Beneficial Conversion Feature remaining $ 357,750
Conversion price $ 0.033 $ 0.033
Term of warrants6 months
Interest rate6.00%6.00%
Proceeds from convertible notes payable $ 357,750
Convertible Notes Payable [Member] | Between March 27, 2020 and November 10, 2020 [Member]
Debt instrument converted principal amount344,450
Accrued interest $ 10,336 $ 10,336
Common stock shares reserved for future issuance107,510,927 107,510,927
Convertible Notes Payable, Related Party [Member] | August 10, 2020 and January 19, 2021 [Member]
Convertible notes payable, net of discount $ 284,550 $ 284,550
Coupon rate6.00%6.00%
Maturity date descriptionThe notes have a maturity date of three and six months.
Convertible Notes Payable, Related Party [Member] | August 10, 2020 and January 19, 2021 [Member] | Conversion price 1 [Member]
Convertible notes payable, net of discount $ 87,000 $ 87,000
Conversion price $ 0.025 $ 0.025
Convertible Notes Payable, Related Party [Member] | August 10, 2020 and January 19, 2021 [Member] | Conversion price 2 [Member]
Convertible notes payable, net of discount $ 180,550 $ 180,550
Conversion price $ 0.3 $ 0.3
Convertible Notes Payable, Related Party [Member] | August 10, 2020 and January 19, 2021 [Member] | Conversion price 3 [Member]
Convertible notes payable, net of discount $ 17,000 $ 17,000
Conversion price $ 0.003 $ 0.003

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)1 Months Ended3 Months Ended9 Months Ended
Mar. 22, 2021Dec. 01, 2020Nov. 25, 2020Oct. 30, 2020Aug. 26, 2020Aug. 25, 2020Mar. 31, 2021Dec. 31, 2020Sep. 30, 2020Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
Stock issued during period, shares, issued for services9,991,667 2,000,000 300,000 4,090,909
Amortization of debt discount, related party $ 0 $ (12,977) $ (5,000) $ (27,242)
Interest expense, related party0 1,356 $ 76 $ 3,979
Stock issued during period, value, issued for services $ 1,199,000 $ 100,000 $ 13,200 $ 13,500 $ 62,050 $ 1,013,200 $ 200,454
Common stock shares issued283,875,576 283,875,576 69,584,149
Debt instrument converted principal amount $ 78,714 $ 51,145 $ 135,739
Keystone Business Development Partners [Member]
Related party consulting fees $ 22,500
Related party debt recorded in accounts payable $ 7,500 7,500
Coupon rate6.00%
Price per share $ 0.025
Conversion price $ 0.025
Note converted into common stock203,025
Accrued interest $ 76
Common stock shares issued203,024
Debt instrument converted principal amount $ 5,000
Principle amount $ 5,000
AMP Web Services [Member]
Stock issued during period, shares, issued for services4,090,909
Stock issued during period, value, issued for services $ 13,500
Related party consulting fees32,500
Related party consulting fees due $ 4,500 4,500
Ancient Investments, LLC [Member]
Related party consulting fees $ 66,000
Warrants [Member]
Common stock shares issued200,000 200,000
Term of warrants2 years
Exercise price $ 0.025 $ 0.025
Additional paid in capital under fair value $ 2,461 $ 2,461
Allocation of warrants $ 2,461 2,461
Beneficial conversion feature recorded in additional paid in capital $ 2,591

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)1 Months Ended3 Months Ended9 Months Ended
Mar. 22, 2021Jan. 29, 2021Dec. 01, 2020Nov. 24, 2020Nov. 17, 2020Oct. 30, 2020Aug. 26, 2020Mar. 31, 2021Dec. 31, 2020Sep. 30, 2020Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Mar. 27, 2021Feb. 15, 2021Jun. 30, 2020
Price per share $ 0.05 $ 0.015 $ 0.015 $ 0.044 $ 0.049 $ 0.12 $ 0.12
Preferred stock, shares rescinded990,000
Shares returned to treasury stock41,000
Stock issued during period, shares, issued for services9,991,667 2,000,000 300,000 4,090,909
Common stock shares sold1,700,000 1,700,000
Stock issued during period, value, issued for services $ 1,199,000 $ 100,000 $ 13,200 $ 13,500 $ 62,050 $ 1,013,200 $ 200,454
Shares value $ 25,500 $ 25,500 200,454
Loss on settlement in debt $ 186,954 $ 0 $ 0 $ 186,954 $ 0
Conversion of preferred to common stock, amount $ 39,358
Conversion of preferred to common stock, shares39,358,000
Debt instrument converted principal amount $ 78,714 $ 51,145 $ 135,739
Series A Preferred Stock [Member]
Preferred stock, shares rescinded1,760,000 1,760,000
Preferred stock, shares designated3,500,000 3,500,000 3,500,000
Preferred stock, shares outstanding793,279 793,279 3,113,638
Preferred stock, shares issued793,279 793,279 3,113,638
Preferred stock voting descriptionThe preferred shares shall be entitled to 100 votes to every one share of common stock.
Common stock, conversion descriptionEach share of Series A Preferred Stock is convertible, at the option of the holder thereof, at any time into shares of Common Stock on a 1:1,000 basis.
Common stock, Dividend descriptionThe Series A Preferred Stockholders are treated the same as the Common Stock holders except at the dividend on each share of Series A Convertible Preferred Stock is equal to the amount of the dividend declared and paid on each share of Common Stock multiplied by the Conversion Rate.
Preferred stock, shares par value $ 0.00001 $ 0.00001 $ 0.00001
Preferred stock, shares authorized100,000,000 100,000,000 100,000,000
Series A Preferred Stock [Member] | Banjo & Matilda, Inc and American Aviation Technologies LLC [Member]
Stock issued during period, shares, issued for services50,000
Stock issued during period, value, issued for services $ 25,500
Common stock price per share $ 0.51
Debt One [Member]
Common stock issued for prior period conversions of principal and interest24,153,385
Debt instrument converted principal amount $ 150,450
Accrued interest $ 3,260 $ 3,260
Debt [Member]
Common stock issued for prior period conversions of principal and interest112,847,466
Debt instrument converted principal amount $ 359,300
Accrued interest $ 13,097 $ 13,097
Spider Investments, LLC [Member]
Shares returned to treasury stock41,000
December 1, 2020 [Member]
Price per share $ 0.05 $ 0.05
Stock issued during period, shares, issued for services18,000,000
Stock issued during period, value, issued for services $ 900,000
American Aviation Technologies, LLC [Member]
Preferred stock, shares rescinded1,250,001 1,250,001
Advisory Board [Member]
Stock issued during period, shares, issued for services50,000 50,000
Stock issued during period, value, issued for services $ 13,800 $ 25,500
Common stock price per share $ 0.28 $ 0.51
Advisory Board One [Member]
Stock issued during period, shares, issued for services50,000
Stock issued during period, value, issued for services $ 22,750
Common stock price per share $ 0.46

GOING CONCERN MATTERS (Details

GOING CONCERN MATTERS (Details Narrative) - USD ($)3 Months Ended9 Months Ended
Mar. 31, 2021Dec. 31, 2020Sep. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
GOING CONCERN MATTERS
Cash $ 1,506,566 $ 1,506,566 $ 38,893
Working capital deficit(1,393,092)(1,393,092) $ (53,532)
Net loss $ (334,443) $ (1,193,349) $ (327,072) $ (292,960) $ (277,031) $ (19,166) $ (1,854,864) $ (589,157)

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)May 12, 2021Apr. 03, 2021Apr. 26, 2021Mar. 22, 2021Dec. 01, 2020Oct. 30, 2020Aug. 26, 2020Mar. 31, 2021Dec. 31, 2020Sep. 30, 2020Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Proceeds from issuance of common stock $ 1,548,000 $ 0
Debt instrument converted principal amount $ 78,714 $ 51,145 $ 135,739
Stock issued during period, value, issued for services $ 1,199,000 $ 100,000 $ 13,200 $ 13,500 $ 62,050 $ 1,013,200 $ 200,454
Stock issued during period, shares, issued for services9,991,667 2,000,000 300,000 4,090,909
April 1, 2021 [Member]
Common stock price per share $ 0.12 $ 0.12
Stock issued during period, value, issued for services $ 250,000
Stock issued during period, shares, issued for services2,083,334
Subsequent Event [Member]
Proceeds from issuance of common stock $ 100,000
Shares sold833,333
Common stock price per share $ 0.12
Subsequent Event [Member] | Subscription Agreement [Member]
Debt instrument converted principal amount $ 30,000
Debt conversion converted instrument, shares issued1,014,798
Debt conversion converted instrument, accrued interest $ 443
Subsequent Event [Member] | AAT Membership Unit Adjustment [Member] | American Aviation Technologies, LLC [Member]
Returned membership units3,600,000
Subsequent Event [Member] | Employment Agreement [Member]
Annual base salary $ 180,000
Issuance of preferred shares1,000,000