Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 113

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 113
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conditions materially consistent with those of the Loan Agreement.

Net
cash used by financing activities for the three months ended June 30, 2024 was $0.3 million, which were wholly comprised of loan repayments.

Future
Funding Requirements

We
have generated revenue of $6.7 million from the sale of products to date. We had an operating cash flow decrease of $4.5 million for
the three months ended June 30, 2025 and we have experienced an accumulated loss of $294.0 million since inception through June 30, 2025.
As of June 30, 2025, we had cash, cash equivalents and marketable securities of $6.5 million and $0.2 million in restricted cash.

31

We
expect to incur net losses and have net cash outflows for at least the next twelve months. 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 as described below, while not assured, will enable them to meet the Company’s
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
November 1, 2024, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) for a secured loan with certain
lenders, including its Chief Executive Officer Steven Lisi and director Robert Carey, for an aggregate principal balance of $11.5 million.
The Loan Agreement was approved by each of the Company’s independent and disinterested directors, following the receipt of a recommendation
from an independent investment bank. The Loan Agreement provides for the following terms: (i) principal amount of $11,500,000; (ii) ten-year
term; (iii) interest of 15% per annum, of which 3% shall be payable in cash and 12% payable in kind through June 30, 2026 and thereafter
all in cash; (iv) a royalty interest of 8% of the Company’s net sales on