Company: XAIR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021561
Chunk: 15

Company: Beyond Air, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 the arrangement. Additionally, the Company made an accounting policy election to
present LungFit® PH revenue net of sales and other similar taxes.

At
the lease commencement date, the Company will defer initial direct costs, including commission expense and the cost is recognized over
the lease term on the same basis as lease income.

See
Note 10 to the unaudited condensed consolidated financial statements for more information regarding leasing arrangements.

The
Company also generates revenue from the sale of its LungFit® PH devices and consumables to its customers under distribution arrangements.
Contracts include one performance obligation as any individual promised good or services other than delivery of the devices and consumables
are generally either not capable of being distinct or not distinct within the context of the contracts. Purchased quantities of devices
and consumables are varied and may be supplied upon demand of the customers. Revenue is recognized at a point in time when the Company
delivers the goods to its customer. The transaction includes a fixed component based on contractual rates. Revenue recognized reflects
the consideration the Company expects to receive in exchange for delivering the goods.

Amounts
billed in advance of performance obligations being satisfied are recognized as deferred revenue.

The
Company records the costs of shipping devices and consumables in cost of revenues in its unaudited condensed consolidated statements
of operations and comprehensive loss.

    11

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Fair
Value Measurements

As
of September 30, 2025 and March 31, 2025, the Company’s financial instruments included restricted cash, marketable securities,
accounts payable, long-term debt and liability classified warrants. The carrying amounts reported in the accompanying condensed consolidated
financial statements for cash and cash equivalents, restricted cash and marketable securities approximate their respective fair values
because of the short-term nature of these accounts. The carrying value of the Company’s long-term debt approximates fair value
based on current interest rates for similar types of borrowings. The liability classified
warrants liability is recorded at fair value and is Level 3 of the fair value hierarchy.

The
following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis:

The
fair value amounts as of September 30, 2025 are:

S