Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 15

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 of the Company and the accounts of all of the
Company’s subsidiaries and a variable interest entity (“VIE”) for which the Company is the primary beneficiary. As
the Company has both the power to direct activities of Beyond Cancer that most significantly impact Beyond Cancer’s economic
performance and the right to receive benefits and losses that may potentially be significant, these financial statements are fully
consolidated with those of the Company. The non-controlling owners’ 20%
interest in Beyond Cancer’s net assets and result of operations is reported as “non-controlling interest” on the
Company’s unaudited condensed consolidated balance sheets and as “net loss attributable to non-controlling
interest” in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss. All
intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial
statements.

Reclassifications

Certain
prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the
reported results of operations.

Use
of Estimates

The
preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period.
Actual results could significantly differ from those estimates. On an ongoing basis, the Company evaluates its significant estimates
and assumptions including expense recognition and accrual assumptions under consulting and clinical trial agreements, stock-based compensation,
impairment assessments, accounting for licensed rights to use technologies, warrant valuations and other long-lived assets, contingency recognition and accruals
and the determination of valuation allowance requirements on deferred tax attributes.

     10 

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Related Party Transactions

The Board of Directors has adopted a related party
transaction policy. This policy applies to all transactions that qualify for disclosure under Item 404(a of Regulation S-K of the Exchange
Act. Information about transactions involving related parties is reviewed by the Audit Committee. Related persons include Company directors
and executive officers as well as their immediate family members. If a related party