XERIANT INC
For the period ended Mar 31, 2024. Filed May 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 14, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-31; filed 2024-02-14.
0001477932-24-000713
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001477932-24-002829
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 66 previous paragraphs and 66 current paragraphs.
41 unchanged; 21 reworded; 4 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Total general and administrative expenses were $67,761 and $48,381 for the three months ended March 31, 2024 and 2023, respectively, an increase of $19,380. The primary reason for the increase was increased travel and research and development costs relating to the launch of NEXBOARD over the same period last fiscal year.
Current report
Total professional fees were $87,981 and $62,445 for the three months ended March 31, 2024 and 2023, respectively, an increase of $25,536. The primary reason for the increase was increased legal fees relating to current business operations.
Current report
Total advertising and marketing expenses were $548 and $14,688 for the three months ended March 31, 2024 and 2023, respectively, a decrease of $14,140. The decrease was attributed to the cancellation of a marketing program that was initiated in the first quarter of fiscal year 2023.
Current report
Total advertising and marketing expenses were $4,406 and $22,987 for the nine months ended March 31, 2024 and 2023, respectively, a decrease of $18,581. The decrease was attributed to the cancellation of a marketing program that was initiated in the first quarter of fiscal year 2023.
Removed paragraphs (4)
Previous report
Total general and administrative expenses were $71,513 and $69,620 for the three months ended December 31, 2023 and 2022, respectively, a increase of $1,893.
Previous report
Total advertising and marketing expenses were $1,336 and $1,943 for the three months ended December 31, 2023 and 2022, respectively, a decrease of $607.
Previous report
Total professional fees were $125,005 and $168,628 for the six months ended December 31, 2023 and 2022, respectively a decrease of $43,623. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD.
Previous report
Total advertising and marketing expenses were $3,858 and $8,299 for the six months ended December 31, 2023 and 2022, respectively, a decrease of $4,441.
Reworded paragraphs (21)
Previous wording
This section of the report should be read together with Footnotes of the Company’s audited financials for the year ended June 30, 2023. The unaudited statements of operations for the six months ended December 31, 2023 and 2022 are compared in the sections below.
Current wording
This section of the report should be read together with Footnotes of the Company’s audited financials for the year ended June 30, 2023. The unaudited statements of operations for the nine months ended March 31, 2024 and 2023 are compared in the sections below.
Previous wording
On May 31, 2021, we entered into a Joint Venture Agreement (the “Agreement”) with XTI Aircraft Company (“XTI”), a Delaware corporation, to form the XTI JV, named Eco-Aero, LLC, with the purpose of completing the preliminary design review (“PDR”) 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 XTI JV, and it is managed by a management committee consisting of five members, three appointed by Xeriant and two by XTI. The Agreement was effective on June 4, 2021, with an initial deposit of USD1 million into the XTI JV. Our financial commitment was up to USD10 million, contributed as needed to complete the preliminary design of the aircraft. XTI completed Preliminary Design Review during the first quarter of 2022, which was the purpose of the XTI JV. On May 31, 2023, the joint venture terminated in accordance with the Agreement. However, as of the date of this filing, Eco-Aero, LLC has not been dissolved and the distribution of the TriFan 600 design IP has not been executed. As per the Agreement, Xeriant is entitled to receive shares of XTI, the number of which is in the process of being determined by the parties involved.
Current wording
On May 31, 2021, we entered into a Joint Venture Agreement (the “Agreement”) with XTI Aircraft Company (“XTI”), a Delaware corporation, to form the XTI JV, named Eco-Aero, LLC, with the purpose of completing the preliminary design review (“PDR”) of XTI’s TriFan 600, a 5-passenger plus pilot, hybrid electric, vertical takeoff, and landing (eVTOL) fixed wing aircraft. Under the Agreement, Xeriant contributed capital, technology, and strategic business relationships, and XTI contributed intellectual property licensing rights and know-how. XTI and the Company each own 50 percent of the XTI JV, and it is managed by a management committee consisting of five members, three appointed by Xeriant and two by XTI. The Agreement was effective on June 4, 2021, with an initial deposit of USD1 million into the XTI JV. Our financial commitment was up to USD10 million, contributed as needed to complete the preliminary design of the aircraft. XTI completed Preliminary Design Review during the first quarter of 2022, which was the purpose of the XTI JV. On May 31, 2023, the joint venture terminated in accordance with the Agreement. However, as of the date of this filing, Eco-Aero, LLC has not been dissolved and the distribution of the TriFan 600 design IP has not been executed. As per the Agreement, Xeriant is entitled to receive shares of XTI, the number of which is in the process of being determined by the parties involved.
Previous wording
The Company believes that the completed designs of the TriFan 600, a product of the Company’s significant investment, are integral to XTI’s impending merger with Inpixon. Despite the Company’s pivotal role in facilitating this merger, as memorialized in a formal agreement, XTI has publicly disclaimed any obligation to compensate the Company. In response to XTI’s alleged fraudulent conduct, deceptive maneuvers and intentional breaches, the Company is seeking a range of remedies. These include the recovery of losses, expenses, attorneys’ fees, punitive damages and a compensatory damage award exceeding $500 million. The legal action aims to address the alleged misconduct comprehensively and to protect the Company’s interests in the face of XTI’s actions.
Current wording
The Company believes that the completed designs of the TriFan 600, a product of the Company’s significant investment, were integral to XTI’s merger with Inpixon. Despite the Company’s pivotal role in facilitating this merger, as memorialized in a formal agreement, XTI has publicly disclaimed any obligation to compensate the Company. In response to XTI’s alleged fraudulent conduct, deceptive maneuvers and intentional breaches, the Company is seeking a range of remedies. These include the recovery of losses, expenses, attorneys’ fees, punitive damages and a compensatory damage award exceeding $500 million. The legal action aims to address the alleged misconduct comprehensively and to protect the Company’s interests in the face of XTI’s actions.
Previous wording
Prior to filing of complaint noted below, the Company had been in active negotiations with Auctus Fund, LLC, to extend the maturity date of the Senior Secured Promissory Note which became due and payable on March 15, 2023. Please see Note 6 to the financial statements. On June 1, 2023, the SEC filed a complaint against Auctus claiming that the company was operating as an unlicensed broker-dealer, and the loans could result in cancellation. On October 19, 2023, the Company filed a complaint in the United States Southern District of New York against Auctus to invalidate allegedly illegally designed contractual agreements, including contesting the enforceability of the related note and amendments, and to set aside improper and unlawful securities transactions effectuated in violation of Section 15(a)(1) of the Exchange Act (15 U.S.C. § 78o(a)(1)) by the Defendant, alleging breaches of fiduciary duty and related claims. If either the Company or the SEC are unsuccessful in their legal actions and there is no settlement reached with Auctus, the Company will be required to continue negotiations with Auctus as to extension or satisfaction of the Note, or Auctus may elect to convert the Note into shares of our Common Stock, or seek a judgment against the Company for amounts due under the Note, as amended. In that event, our shareholders could experience substantial dilution, or the Company could lose substantially all of its assets.
Current wording
Prior to filing of complaint noted below, the Company had been in active negotiations with Auctus Fund, LLC, to extend the maturity date of the Senior Secured Promissory Note which became due and payable on March 15, 2023. Please see Note 6 to the financial statements. On June 1, 2023, the SEC filed a complaint against Auctus claiming that the company was operating as an unlicensed broker-dealer, and its loans could result in cancellation. On October 19, 2023, the Company filed a complaint in the United States Southern District of New York against Auctus to invalidate allegedly illegally designed contractual agreements, including contesting the enforceability of the related note and amendments, and to set aside improper and unlawful securities transactions effectuated in violation of Section 15(a)(1) of the Exchange Act (15 U.S.C. § 78o(a)(1)) by the Defendant, alleging breaches of fiduciary duty and related claims. The case was dismissed on February 9, 2024. The Company filed a Notice of Civil Appeal on March 13, 2024, in allow filing of an appeal primarily based on public welfare because of the pending litigation between the SEC and Auctus Fund Management, LLC. If either the Company or the SEC are unsuccessful in their legal actions and there is no settlement reached with Auctus, the Company will be required to continue negotiations with Auctus as to extension or satisfaction of the Note, or Auctus may elect to convert the Note into shares of our Common Stock, or seek a judgment against the Company for amounts due under the Note, as amended. In that event, our shareholders could experience substantial dilution, or the Company could lose substantially all of its assets.
Previous wording
During the six months ended December 31, 2023, the Company received $630,000 from issuance of convertible debt.
Current wording
During the nine months ended March 31, 2024, the Company received $1,380,000 from issuance of convertible debt.
Previous wording
Total consulting and advisory expenses were $102,650 and $270,888 for the three months ended December 31, 2023 and 2022, respectively, a decrease of $168,238. In the prior period, there were increased expenses due to stock issuances for services relating to advisory agreements.
Current wording
Total consulting and advisory expenses were $39,650 and $177,726 for the three months ended March 31, 2024 and 2023, respectively, a decrease of $138,076. In the prior period, there were increased expenses due to stock issuances and services relating to advisory agreements.
Previous wording
Total related party consulting fees were $174,500 and $212,000 for the six months ended December 31, 2023 and 2022, respectively, a decrease of $37,500. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD. The related party consulting fees for the six months ended December 31, 2023, consisted of (i) $99,500 to Ancient Investments, LLC, a company owned by Keith Duffy, CEO and Scott Duffy, Executive Director of Operations, (ii) $29,000 for AMP Web Services, LLC, a company owned by Pablo Lavigna, CIO, (iii) $36,000 to Edward DeFeudis, Director, and (iv) $10,000 for Keystone Business Development Partners, LLC, a company owned by Brian Carey, CFO. The related party consulting fees for the six months ended December 31, 2022, consisted of (i) $110,000 to Ancient Investments, LLC, (ii) $35,000 for AMP Web Services, LLC, (iii) $52,000 to Edward DeFeudis, and (iv) $15,000 for Keystone Business Development Partners, LLC.
Current wording
Total related party consulting fees were $89,500 and $84,000 for the three months ended March 31, 2024 and 2023, respectively, an increase of $5,500. The reason for the increase was increased available funds for payment of consulting fees and travel and research and development costs relating to the launch of NEXBOARD over the same period last fiscal year. The related party consulting fees for the three months ended March 31, 2024, consisted of (i) $50,000 to Ancient Investments, LLC, a company owned by Keith Duffy, CEO and Scott Duffy, Executive Director of Operations, (ii) $17,000 for AMP Web Services, LLC, a company owned by Pablo Lavigna, CIO, (iii) $15,000 to Edward DeFeudis, Director, and (iv) $7,500 for Keystone Business Development Partners, LLC, a company owned by Brian Carey, CFO. The related party consulting fees for the three months ended March 31, 2023, consisted of (i) $40,000 to Ancient Investments, LLC, (ii) $14,000 for AMP Web Services, LLC, (iii) $25,000 to Edward DeFeudis, and (iv) $5,000 for Keystone Business Development Partners, LLC.
Previous wording
Total research and development expenses were $52,753 and $0 for the three months ended December 31 2023 and 2022, respectively, an increase of $52,753. Research & Development Expenses are accounted for through BlueGreen Composites, LLC, which was formed on August 7, 2023. All research and development expenses were related to the production and distribution of sample NEXBOARDs for presentation to potential customers.
Current wording
Total research and development expenses were $67,524 and $0 for the three months ended March 31 2024 and 2023, respectively, an increase of $67,524. Research & development expenses are accounted for through BlueGreen Composites, LLC, which was formed on August 7, 2023. All research and development expenses were related to the production and distribution of sample NEXBOARDs for presentation to potential customers.
Previous wording
Total other expenses consist of interest expense related to convertible notes and change in fair value of the convertible bridge loans. Total other expenses were $866,952 for the three months ended December 31, 2023, compared to $755,343 for the three months ended December 31, 2022. The increase of $111,609 was primarily due to recording the Auctus default interest in the current period.
Current wording
Total other expenses consist of interest expense related to convertible notes and change in fair value of the convertible bridge loans. Total other expenses were $31,132 and $2,498 for the three months ended March 31, 2024 and 2023, respectfully, an increase of $28,634. The increase was due to increased interest expense related to new and previously issued convertible notes, offset by a gain from Edenberg JV of $18,919 in the prior period.
Previous wording
Total net loss was $1,206,895 for the three months ended December 31, 2023, compared to $1,294,362 for the three months ended December 31, 2022, an increase of $87,467.
Current wording
Total net loss was $384,096 for the three months ended March 31, 2024, compared to $389,738 for the three months ended March 31, 2023, a decrease of $5,642.
Previous wording
Six months ended December 31, 2023 Results of Operations Compared with six months ended December 31, 2022
Current wording
Nine months ended March 31, 2024 Results of Operations Compared with nine months ended March 31, 2023
Previous wording
Total consulting and advisory expenses were $154,345 and $726,461 for the six months ended December 31, 2023 and 2022, respectively, a decrease of $572,116. In the prior period, there were increased expenses due to stock issuances for services relating to advisory agreements.
Current wording
Total consulting and advisory expenses were $193,995 and $904,187 for the nine months ended March 31, 2024 and 2023, respectively, a decrease of $710,192. In the prior period, there were increased expenses due to stock issuances for services relating to advisory agreements.
Previous wording
Total related party consulting fees were $77,000 and $118,000 for the three months ended December 31, 2023 and 2022, respectively, a decrease of $41,000. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD. The related party consulting fees for the three months ended December 31, 2023, consisted of (i) $42,000 to Ancient Investments, LLC, a company owned by Keith Duffy, CEO and Scott Duffy, Executive Director of Operations, (ii) $15,000 for AMP Web Services, LLC, a company owned by Pablo Lavigna, CIO, (iii) $15,000 to Edward DeFeudis, Director, and (iv) $5,000 for Keystone Business Development Partners, LLC, a company owned by Brian Carey, CFO. The related party consulting fees for the three months ended December 31, 2022, consisted of (i) $55,000 to Ancient Investments, LLC, (ii) $21,000 for AMP Web Services, LLC, (iii) $32,000 to Edward DeFeudis, and (iv) $10,000 for Keystone Business Development Partners, LLC.
Current wording
Total related party consulting fees were $264,000 and $296,000 for the nine months ended March 31, 2024 and 2023, respectively, a decrease of $32,000. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD. The related party consulting fees for the nine months ended March 31, 2024, consisted of (i) $149,500 to Ancient Investments, LLC, a company owned by Keith Duffy, CEO and Scott Duffy, Executive Director of Operations, (ii) $46,000 for AMP Web Services, LLC, a company owned by Pablo Lavigna, CIO, (iii) $51,000 to Edward DeFeudis, Director, and (iv) $17,500 for Keystone Business Development Partners, LLC, a company owned by Brian Carey, CFO. The related party consulting fees for the nine months ended March 31, 2023, consisted of (i) $150,000 to Ancient Investments, LLC, (ii) $49,000 for AMP Web Services, LLC, (iii) $77,000 to Edward DeFeudis, and (iv) $20,000 for Keystone Business Development Partners, LLC.
Previous wording
Total general and administrative expenses were $121,390 and $159,616 for the six months ended December 31, 2023 and 2022, respectively, a decrease of $38,226. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD.
Current wording
Total general and administrative expenses were $189,151 and $207,997 for the nine months ended March 31, 2024 and 2023, respectively, a decrease of $18,846. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD.
Previous wording
Total professional fees were $34,691 and $78,568 for the three months ended December 31, 2023 and 2022, respectively, a decrease of $43,877. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD.
Current wording
Total professional fees were $212,986 and $231,073 for the nine months ended March 31, 2024 and 2023, respectively a decrease of $18,087. The primary reason for the decrease was the desire of Management to reduce the need for additional investment and to preserve funds for payments of increased travel and research and development costs relating to the launch of NEXBOARD.
Previous wording
Total research and development expenses were $79,735 and $0 for the six months ended December 31 2023 and 2022, respectively, an increase of $79,735. Research & Development Expenses are accounted for through BlueGreen Composites, LLC, which was formed on August 7, 2023. All research and development expenses were related to the production and distribution of sample NEXBOARDs for presentation to potential customers.
Current wording
Total research and development expenses were $147,259 and $0 for the nine months ended March 31, 2024 and 2023, respectively, an increase of $147,259. Research & development expenses are accounted for through BlueGreen Composites, LLC, which was formed on August 7, 2023. All research and development expenses were related to the production and distribution of sample NEXBOARDs for presentation to potential customers.
Previous wording
Total other expenses consist of amortization of debt discount, interest expense related to convertible notes, change in fair value of the convertible bridge loans, loss from Edenberg JV, and loss on extinguishment of debt. Total other expenses were $890,074 for the six months ended December 31, 2023, compared to $4,836,879 for the six months ended December 31, 2022. The primary reason for the $3,946,805 decrease was due to the loss on extinguishment of debt of $4,259,987 in the prior period partially offset by default interest and loss on extinguishment of debt in the current period amounting to $867,328.
Current wording
Total other expenses consist of amortization of debt discount, interest expense related to convertible notes, change in fair value of the convertible bridge loans, loss from Edenberg JV, and loss on extinguishment of debt. Total other expenses were $921,206 for the nine months ended March 31, 2024, compared to $4,839,377 for the nine months ended March 31, 2023. The primary reason for the $3,918,171 decrease was due to the loss on extinguishment of debt of $4,259,987 in the prior period partially offset by default interest of $825,030 and loss on extinguishment of debt in the current period amounting to $20,298.
Previous wording
Total net loss was $1,548,907 for the six months ended December 31, 2023, compared to $6,111,883 for the six months ended December 31, 2022. The decrease of $4,562,976 related primarily to the loss on extinguishment of debt of $4,259,987 in the prior period and higher consulting and advisory fees in the prior period. This was partially offset by default interest and loss on extinguishment of debt in the current period amounting to $867,328.
Current wording
Total net loss was $1,933,003 for the nine months ended March 31, 2024, compared to $6,501,621 for the nine months ended March 31, 2023. The decrease of $4,568,618 related primarily to the loss on extinguishment of debt of $4,259,987 in the prior period and higher consulting and advisory fees in the prior period. This was partially offset by default interest of $825,030 and loss on extinguishment of debt in the current period amounting to $20,298.
Previous wording
The Company's condensed consolidated 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. On December 31, 2023, and June 30, 2023, the Company had $38,981 and $61,625 in cash, respectively, and $7,888,081 and $6,684,867 in negative working capital, respectively. On December 31, 2023, the principal balance of the Auctus Senior Secured Promissory Note was $5,850,000. The Note matured on March 15, 2023. For the three months ended December 31, 2023 and 2022, the Company had a net loss of $1,206,895 and $1,294,362, respectively. For the six months ended December 31, 2023 and 2022, the Company had a net loss of $1,548,907 and $6,111,883, respectively. Continued losses will 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 condensed consolidated 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 condensed consolidated 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.
Current wording
The Company's condensed consolidated 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. On March 31, 2024 and June 30, 2023, the Company had $373,568 and $61,625 in cash, respectively, and $8,227,696 and $6,684,867 in negative working capital, respectively. On March 31, 2024, the principal balance of the Auctus Senior Secured Promissory Note was $5,850,000. The Note matured on March 15, 2023. For the three months ended March 31, 2024 and 2023, the Company had a net loss of $384,096 and $389,738, respectively. For the nine months ended March 31, 2024 and 2023, the Company had a net loss of $1,933,003 and $6,501,621, respectively. Continued losses will 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 condensed consolidated 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 condensed consolidated 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.
Previous wording
During the six months ended December 31, 2023, the Company’s operating activities used $644,481 of net cash used compared to using $943,785 of net cash used in our operating activities during the six months ended December 31, 2022. During the six months ended December 31, 2023, our investing activities used $8,163 of net cash compared to using $2,567 of net cash in our investing activities during the six months ended December 31, 2022. This difference related to an increase of notes receivable during the six months December 31, 2023, offset by purchase of property and equipment in the prior period. During the six months ended December 31, 2023, our financing activities added $630,000 of net cash compared to $0 of net cash in our financing activities during the six months ended December 31, 2022. This difference related to the issuance of convertible notes during the six months ended December 31, 2023.
Current wording
During the nine months ended March 31, 2024, the Company’s operating activities used $1,059,894 of net cash used compared to using $1,037,036 of net cash used in our operating activities during the nine months ended March 31, 2023. During the nine months ended March 31, 2024, our investing activities used $8,163 of net cash compared to using $194,829 of net cash in our investing activities during the nine months ended March 31, 2023. This primary reason for the difference is the $192,262 in the prior period related to Investment in JV Movychem. During the nine months ended March 31, 2024, our financing activities added $1,380,000 of net cash compared to $270,000 of net cash in our financing activities during the nine months ended March 31, 2023.
Previous wording
Our discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments which affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities (see Note 2, Summary of Significant Accounting Policies, contained in the notes to the Company’s condensed consolidated financial statements for the six months ended December 31, 2023 and 2022 contained in this filing). On an ongoing basis, we evaluate our estimates. The Company bases our estimates on historical experience and on various other assumptions which we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities which are not readily apparent from other sources. Actual results may differ from these estimates based upon different assumptions or conditions; however, we believe that our estimates are reasonable.
Current wording
Our discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments which affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities (see Note 2, Summary of Significant Accounting Policies, contained in the notes to the Company’s condensed consolidated financial statements for the nine months ended March 31, 2024 and 2023 contained in this filing). On an ongoing basis, we evaluate our estimates. The Company bases our estimates on historical experience and on various other assumptions which we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities which are not readily apparent from other sources. Actual results may differ from these estimates based upon different assumptions or conditions; however, we believe that our estimates are reasonable.