Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 36

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 the agreement, with the majority of them, approximately $83 million, being sales-related based on cumulative sales milestones
for each of the three products. BA Ltd. is not currently developing any qualifying products.

On
January 31, 2018, the Company entered into an agreement (the “NitricGen Agreement”) with NitricGen, Inc. (“NitricGen”)
to acquire a global, exclusive, transferable license and associated assets including intellectual property, know-how, trade secrets and
confidential information from NitricGen related to the LungFit®. The Company acquired the licensing right to use the technology
and agreed to pay NitricGen a total of $2.0 million in future payments based upon achieving certain milestones, as defined in the NitricGen
Agreement, and single-digit royalties on sales of the LungFit®. The Company paid NitricGen $0.1 million upon the execution
of the NitricGen Agreement, $0.1 million upon achieving the next milestone and $1.5 million in January 2023, six months after approval
of the LungFit® by the FDA) and issued 100,000 warrants to purchase the Company’s common stock valued at $0.3 million
upon executing the NitricGen Agreement. As of June 30, 2025 the remaining future milestone payments total $0.3 million.

Supply
Agreement and Purchase Order

In
August 2020, the Company entered into a supply agreement with an initial expiration date of December 31, 2024. The agreement will renew
automatically for successive three-year periods unless and until the Company provides 12 months’ notice of intent not to renew.
As of the date of this report, the Company has not provided such notice. The Company has opened several non-cancellable purchase orders
and the outstanding amount remaining under the purchase order as of June 30, 2025 was approximately $0.4 million with this supplier.
This supplier holds $4.0 million of restricted cash to partially secure materials on the Company’s behalf recorded in other current
assets and prepaid expenses.

Contingencies

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.

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BEYOND
AIR, INC. AND SUBSIDI