Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 2021

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 7A
Chunk 2021
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 of term of lease or estimated useful life of the asset

Segment Reporting

Operating segments are defined as components of an
entity for which both discrete financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”)
in deciding how to allocate resources to an individual segment and in assessing performance. The CODM is our Chief Executive Officer.
The Company’s CODM evaluates performance and allocates resources for all of the Company’s reportable segments based on income/loss
from operations. The CODM is involved in determining and reviewing projected income/loss from operations as part of the annual budget
process. Throughout the year, the CODM considers forecast to actual results and variances to allocate resources. The CODM also considers
this information in strategic decisions related to capital allocations, including investments in assets, research and development activities,
and human capital.

The Company’s reportable segments at March 31, 2024 included Beyond
Air and Beyond Cancer. Following the March 24, 2025 private placement and reorganization of the Company’s
neurology business into the NeuroNos companies,
the Company’s operations became further classified into three segments, Beyond Air, Beyond Cancer and NeuroNos. Each segment has
its own management team, board of directors, corporate officers and legal entities. As of March 31, 2025, Beyond Air, Inc. owned 80% of
the common stock of Beyond Cancer and 88.2% of the common stock of NeuroNos.

The Beyond
Air segment includes unallocated corporate expenses associated with the public company fees as well as all corporate related assets and
liabilities.

    F-16

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Inventories

Raw materials, work in progress and finished goods
are stated at the lower of cost or net realizable value. Cost comprises direct materials, third-party manufacturing costs and shipping
costs incurred to deliver goods to the Company’s central warehouse location.

Costs are assigned to individual items of inventory
on the basis of weighted average costs. Inventory items are tracked by batch/lot number for specific identification whenever possible.
The Company uses judgement to determine the proportion of inventory items held which will be provided to a hospital as part of its service
delivery versus the inventory items that will be provided free of charge