Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1997

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 7A
Chunk 1997
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,848,712 pre-funded stock purchase
warrants, (the “Pre-funded Warrants”) to purchase up to 15,848,712 shares of common stock and (iii) 40,848,711 stock purchase
warrants (the “Common Warrants” and together with the Pre-funded Warrants, the “Warrants”) to purchase up to 40,848,711
shares of common stock. Each common share and accompanying Common Warrant were sold together at a combined offering price of $0.5043,
and each Pre-Funded Warrant and accompanying Common Warrant were sold together at a combined offering price of $0.5042 for gross proceeds
of $20.6 million (which includes $2.0 million from related parties). Members of the Board of Directors and certain executives of the Company
are considered related parties to this offering. The Pre-Funded Warrants have an exercise price of $0.0001 per share, and the Common Warrants
have an exercise price of $0.3793 per share. The private placement offering closed on September 30, 2024. As described in Note 10, 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. On November 1, 2024, the Company entered into an $11.5 million secured Loan Agreement with certain lenders, including
its CEO and a director. The loan has a ten-year term, 15% annual interest (3% cash, 12% in kind through June 2026, then all cash), an
8% royalty on net sales starting July 2026, is secured by substantially all assets, and includes warrants to purchase common stock at
$0.3793 per share. We identified the accounting for equity financing and warrant issu