Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 125

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 13
Chunk 125
---
.S.
dollars, Euros, New Israeli Shekels and Australian dollars. The Company’s main operations are in the United States and the U.S.
dollar is the currency of the primary economic environment in which the Company operates and expects to continue to operate in the foreseeable
future. The Company translated its non-U.S. operations’ assets and liabilities denominated in foreign currencies into U.S. dollars
at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting
period. Gains or losses from foreign currency transactions are included in other income (expense) in the consolidated statements of operations
and comprehensive loss as foreign currency exchange gain/(loss).

In consolidating
international subsidiaries, balance sheet currency effects are recorded as a component of accumulated other comprehensive income and
loss. The accumulated other comprehensive income and loss account includes the cumulative results of translating certain balance
sheet assets and liabilities at current exchange rates and some accounts at historical rates. For the year ended March 31, 2025, the
Company recorded losses of $0.1
million in accumulated other comprehensive income. For the year ended March 31, 2024, the Company recorded losses of $0
million in accumulated other comprehensive loss.

Stock-Based Compensation

The Company measures the cost of employee and non-employee
services received in exchange for an award of equity instruments based on the grant date fair value of the award. Fair value for restricted
stock unit awards is valued using the closing price of the Company’s common stock on the date of grant. The grant date fair value
is recognized over the requisite service period during which an employee and non-employee is required to provide service in exchange for
the award, using the accelerated method with each tranche being expensed over its vesting period. The grant date fair value of employee
and non-employee share options is estimated using the Black-Scholes option pricing model. The risk-free interest rate assumptions were
based upon the observed interest rates appropriate for the expected term of the equity instruments. The expected dividend yield was assumed
to be zero as the Company has not paid any dividends since its inception and does not anticipate paying dividends in the foreseeable future.
The Company accounts for forfeitures as they occur. Starting in 2023, Beyond Air used its own historical volatility as an input for expected
volatility, but due to Beyond Cancer’s lack of marketability, the Company utilizes the implied volatility based on an aggregate
of guideline companies for expected volatility