Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 906

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 906
---
 choice of net-cash settlement or settlement
in shares (physical settlement or net-share settlement). Such warrants are subject to remeasurement at each consolidated balance sheet
date and any change in fair value is recognized as a component of other expense on the consolidated statements of operations and comprehensive
loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of such
warrants. At that time, the portion of the warrant liability related to warrants will be reclassified to additional paid-in capital.

Derivative Liability 

The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as
assets or liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each
reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss. The classification
of derivative instruments, including whether such instruments should be recorded as assets or liabilities or as equity, is evaluated
at the end of each reporting period. Derivative liabilities classified in the consolidated balance sheets as current or non-current based
on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Cash and Cash Equivalents, Short-Term Investments
and Restricted Cash

The Company considers all highly liquid investments
with original maturities of three months or less at the date of purchase and an investment in a U.S. government money market fund to be
cash equivalents. The Company maintains its cash and cash equivalents in highly rated financial institutions in Australia, Israel, Ireland
and the U.S., the balances of which, at times, may exceed federally insured limits. Marketable securities include investments in fixed
income bonds and U.S. Treasury securities that are considered to be highly liquid and easily tradeable. The marketable securities are
considered trading securities and are measured at fair value and are accounted for in accordance with ASC 320. The marketable securities
are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s
fair value hierarchy.

As of March 31, 2025 and March 31, 2024, restricted
cash included approximately $0.2 million and $0.2 million, respectively.

Concentration of Credit Risk

Financial instruments