Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 88

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 88
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 purchase the Company’s common stock valued at $0.3 million
upon executing the NitricGen Agreement. As of June 30, 2025 the remaining future milestone payments total $0.3 million.

Supply
Agreement and Purchase Order

In
August 2020, the Company entered into a supply agreement with an initial expiration date of December 31, 2024. The agreement will renew
automatically for successive three-year periods unless and until the Company provides 12 months’ notice of intent not to renew.
As of the date of this report, the Company has not provided such notice. The Company has opened several non-cancellable purchase orders
and the outstanding amount remaining under the purchase order as of June 30, 2025 was approximately $0.4 million with this supplier.
This supplier holds $4.0 million of restricted cash to partially secure materials on the Company’s behalf recorded in other current
assets and prepaid expenses.

Contingencies

From
time to time, we are involved in various legal matters arising in the normal course of business. We do not expect the outcome of such
proceedings, either individually or in the aggregate, to have a material effect on our financial position, cash flows or results of operations.

    20

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
9 LOANS

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 a quarterly basis from July 2026 until the facility is
repaid in full; (v) the Company’s obligations will be secured by substantially all