Xeriant Inc (XERI)

[Smartypants2]

NEW 10-Q FILING: https://newsfilter.io/a/b60898a6b4edc971bc7cbc8aa1be5ea2

Among other things, I see 2 points of interest...

1- Regarding "Other Previously Announced Joint Ventures and Letters of Intent"

The Company has announced its intention to enter into certain joint ventures and partnerships over the past 12 months, namely Praga Avia, CoFlow Jet, Xeriant Europe, and TheIncLab. Due to the Company's focus on its joint development with XTI Aircraft Company, and ongoing efforts with Movychem s.r.o., the advancement of these partnerships has been put on hold. The Company anticipates revisiting these opportunities after the completion of a public offering when the Company is fully staffed and adequately financed.

2 - Breach of Contract by Major AAT Shareholder and the Resulting Anti-Dilution Event

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February 15, 2021, in accordance with Florida Law and conversations with counsel, the Board of Directors of the Company rescinded 990,000 Series A Preferred Shares, which represented all preferred shares issued to one of the shareholders in the Share Exchange between American Aviation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.

(COMMENT: Each share of Series A Preferred Stock is convertible, at the option of the holder, at any time into shares of Common Stock on a 1:1,000 basis. Therefore, the above cancellation of the above mentioned 990,000 Series A Preferred Shares plus another 1,250,001 Series A Preferred Shares essentially eliminated nearly 2.25 Billion shares of common stock in XERI from ever entering the market -- a highly significant anti-dilution effort!)