Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 43

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 43
---
 the
Empery Suit.

In
December 2021, Hudson Bay Master Fund (“Hudson”) filed a lawsuit in the Supreme Court on the State of New York against the
Company relating to the notice of adjustment of the exercise price of and the number of warrant shares issuable under warrants issued
to Hudson in January 2017. Hudson received 83,334 warrants in connection with the January 2017 offering. Hudson’s complaint alleged
breach of contract and that Hudson is entitled to damages and interest as a result of certain adjustments to the exercise price and number
of warrant shares issuable following a February 2018 financing transaction. The lawsuit was settled in July 2023 and the Company paid
$3.1 million for defense and indemnity costs in the quarter ended December 31, 2023.

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.

     23 

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
10 LOANS

Loan
and Security Agreement

On
June 15, 2023, Beyond Air, Inc. and its wholly-owned subsidiary, Beyond Air Ltd., entered into a Loan and Security Agreement (the “Loan
and Security Agreement”) with Avenue Capital Management II, L.P., as administrative agent and collateral agent (the “Agent”)
and the Lenders. Also on June 15, 2023, the Company entered into a Supplement to the Loan and Security Agreement (collectively with the
Agreement, the “Loan Agreement”) with the Agent and the Lenders. A total of $17.5 million was advanced under the loan. The
loan principal was repayable in equal monthly installments beginning on January 1, 2025. The loans bore interest at a rate per annum
equal to the greater of (i) the prime rate, as published by the Wall Street Journal from time to time, plus 3.75% and (ii) 12.00%. For
the nine months ended December 31, 2024 and December 31 2023, the Company incurred and paid $0.6 million and $0.6 million