Xeriant, Inc. (XERI)

A. Company Overview

Xeriant, Inc. is a company focused on the discovery, development, and commercialization of disruptive technologies in the fields of advanced materials and aerospace. The organization aims to collaborate with and acquire strategic interests in innovative companies that can help accelerate its mission. With an emphasis on sustainability and eco-friendly materials, Xeriant's advanced materials line is marketed under the DUREVER™ brand and includes products such as NEXBOARD™, a patent-pending composite construction panel made from recycled plastic and fiber waste.

B. Corporate History

Formation of Company

Originally incorporated in Nevada on December 18, 2009, the company was initially known as Eastern World Solutions, Inc. Following a name change to Banjo & Matilda, Inc. on September 24, 2013, the current name, Xeriant, Inc., was adopted on June 22, 2020.

Share Exchange with American Aviation Technologies

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 emerging aviation technologies such as autonomous and semi-autonomous vertical take-off and landing (VTOL) aircraft, as well as unmanned aerial vehicles (UAVs). By the end of September 2019, the acquisition of AAT was finalized, making it a wholly owned subsidiary.

Joint Venture with XTI Aircraft

On May 31, 2021, Xeriant established a joint venture with XTI Aircraft Company, termed Eco-Aero, LLC. This venture aimed to finalize the preliminary design review of XTI's eVTOL fixed-wing aircraft, with Xeriant and XTI each holding a 50% stake. However, due to financial restructuring and other disputes, the joint venture was terminated on May 31, 2023.

C. Business Operations

Advanced Materials

Xeriant is particularly focused on developing eco-friendly advanced materials utilizing nanotechnology, aimed at generating substantial near-term revenue. The company seeks to leverage strategic partnerships, licensing arrangements, and joint ventures to expedite market access while reducing capital risks.

NEXBOARD

One of the flagship products under the DUREVER brand is NEXBOARD, designed to replace conventional construction materials such as drywall and plywood. This innovative construction panel is characterized by its environmental benefits, including reduced reliance on timber and the utilization of recycled materials. NEXBOARD is crafted to be water-resistant, mold-resistant, and insect-resistant, addressing key safety and performance issues in traditional building materials. In 2023, Xeriant commenced its own advanced materials development, including proprietary flame-retardant technology to enhance NEXBOARD's safety profile.

The company has filed trademark applications for both NEXBOARD and DUREVER™ and is working on acquiring necessary certifications to meet construction industry standards. Additionally, discussions concerning potential financing for manufacturing facilities have been initiated.

Aerospace Technologies

Xeriant aims to capitalize on the burgeoning advanced air mobility market by focusing on innovative aerospace technologies. Management identifies opportunities for growth through partnerships and acquisitions that enable access to cutting-edge technologies in areas like autonomous flight systems, sustainable propulsion, and advanced materials.

Strategic Focus Areas

• Advanced Air Mobility: The company is developing technologies for VTOL and UAV applications, which hold potential for revolutionizing urban transportation.
• Sustainable Propulsion Systems: There is a strong focus on electric and hybrid propulsion systems to meet the growing demand for eco-friendly flight options.
• Nanotechnology Integration: By embedding nanoparticles into traditional materials, Xeriant aims to enhance strength, durability, and efficiency in aerospace components.

D. Intellectual Property

Xeriant is active in establishing a strong intellectual property portfolio. This includes several patent applications related to its advanced material technologies, specifically the multilayered fire-resistant polymer composite. The company also holds a 64% interest in American Aviation Technologies, which encompasses a patented VTOL drone/aircraft concept, bolstering its position in the aerospace sector.

E. Market Opportunity

Both the advanced materials and aerospace sectors are poised for significant growth. The smart nano-construction materials market, which aligns with Xeriant's offerings, is projected to increase, supported by rising demand for sustainable building practices. Similarly, the aerospace materials market's growth is fueled by shifts towards lightweight and efficient aircraft technologies.