Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1437

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 3
Chunk 1437
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 debt are recorded as a debt discount and are amortized into interest expense over the life of the debt using the
effective interest method. The conversion feature was bifurcated from the debt and was accounted for as a derivative liability.

On September 30, 2024,
Beyond Air and the Lenders reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85
million. This agreement eliminated the debt and interest payments that would have been made to Avenue Capital from October 1,
2024 through June 30, 2026 of $12.0
million. The $17.85
million settlement was treated as an extinguishment of the loan agreement and therefore, proportionate amounts of unamortized
discount and deferred financing costs were written off during the year ended March 31, 2025, resulting in the Company recording loss
on extinguishment of debt of $2.5
million in the consolidated statements of operations and comprehensive loss.

Components
of 2023 Loan and Security Agreement (in thousands)

SCHEDULE OF LOAN AND SECURITY AGREEMENT 

    March 31, 2025  
    March 31, 2024 

    Amount outstanding 
    $-  
    $17,500 

    Paid in kind interest 

    Debt discount 
     -  
     (4,541)
  
    Amortization of debt discount 
     -  
     1,149 
  
    Final payment liability 
     -  
     613 
  
    Total 
    $-  
    $14,721 

    F-28

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE
10 LOANS (continued)

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