OPERATING LEASE RIGHT OF USE ASSET AND OPERATING LEASE LIABILITY

6 Months Ended

Dec. 31, 2025

OPERATING LEASE RIGHT OF USE 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

On February 13, 2025, the Company executed an agreement to lease office space at 3651 FAU Boulevard, Suite 400, Boca Raton, FL 33431. The lease commencement date was March 1, 2025, and is a month-to-month term not to exceed twenty-four months. The rent is $399 per month. The Company is electing to record as ROU since the Company intends to renew the month-to-month lease for the foreseeable future.

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 the Company’s incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Since the common area maintenance expenses are expenses that do not depend on an index or rate, they are excluded from the measurement of the lease liability and recognized in general and administrative expenses on the condensed consolidated statements of operations. During the six months ended December 31, 2025 and 2024, the Company recorded $2,394 and $26,494 in rent expense, respectively, in general and administrative expenses on the condensed consolidated statements of operations. During the three months ended December 31, 2025 and 2024, the Company recorded $1,197 and $13,237 in rent expense in general and administrative expenses on the condensed consolidated statements of operations.

Right-of-use asset is summarized below:

	December 31, 2025			June 30, 2025
Office lease	$	8,719		$	8,719
Less accumulated amortization		(3,423	)		(1,335	)
Right of use assets, net	$	5,296		$	7,384

Operating lease liability is summarized below:

	December 31, 2025			June 30, 2025
Office lease	$	5,296		$	7,384
Less: current portion		(4,788	)		(4,279	)
Long term portion	$	508		$	3,105

Maturity of lease liabilities are as follows:

Year ended June 30, 2026	$	2,394
Year ended June 30, 2027		3,192
Total future minimum lease payments		5,586
Less: Present value discount		(290	)
Lease liability	$	5,296

XERIANT, INC. 10-Q