Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 20

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 and have significant cash outflows for at least the next year, including making significant investments
in research and development. Management believes these factors raise substantial doubt about the Company’s ability to meet its
obligations with cash on hand and concluded that the Company will require additional funding within one year from the date these financial
statements are issued.

Management
is confident that the efforts to arrange financing, while not assured, will enable the Company to meet its obligations.

The
Company’s future capital needs and the adequacy of its available funds will depend on many factors, including, but not necessarily
limited to, the success and costs of commercialization of the Company’s approved product and the actual cost and time necessary
for current and anticipated preclinical studies, clinical trials and other actions needed to obtain certification or regulatory approval
of the Company’s product candidates.

On June 2, 2025, the Company
received $2.0
million of advanced financing from a related party, a director of the Company who is also an existing lender under its Loan Agreement
(“Additional Loans”). The Company is currently arranging the terms and expects that such financing will be issued on
terms and conditions materially consistent with those of the Loan Agreement.

    10

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER RISKS AND UNCERTAINTIES (continued)

Other
Risks and Uncertainties

The
Company is subject to risks common to development and early-stage medical device companies including, but not limited to, new technological
innovations, certifications or regulatory approval, dependence on key personnel, protection of proprietary technology, compliance with
government regulations, product liability, uncertainty of market acceptance of approved products and the potential need to obtain additional
financing. The Company is also dependent on third-party suppliers and, in some cases, single-source suppliers.

The
Company’s products require approval or clearance from the FDA prior to commencement of commercial sales in the United States. There
can be no assurance that the Company’s products beyond LungFit® PH in the U.S. will receive the required approvals
or clearances. Certifications, approvals or clearances are also required in foreign jurisdictions in which the Company may license or
sell its products. If the Company is denied such certifications or approvals or clearances or such certifications, approvals or clearances