Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 144

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 144
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Avenue 2” and, together with Avenue, the “Lenders”). Also on June 15, 2023, the Company entered
into a Supplement to the LSA (collectively with the Agreement, the “Loan Agreement”) with the Agent and the Lenders for senior
secured term loans, with $17.5 million advanced upon entry into the LSA. On December 31, 2024 Beyond Air and Avenue Capital Management
II, L.P., Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. (“collectively, Avenue Capital”)
reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85 million. This agreement
eliminates the debt and interest payments that would have been made to Avenue Capital from October 1, 2024 through June 30, 2026 of $12.0
million. In connection with this agreement $5.0 million was paid on September 27, 2024 in partial settlement. The final $12.85million
was paid on October 4, 2024. Avenue Capital invested $3.35 million in the Securities Purchase Agreement II at the same terms and conditions
as all other investors.

On
September 27, 2024, we entered into a binding term sheet for a secured loan with certain lenders including our Chief Executive Officer
Steven Lisi and director Robert Carey. The term sheet was approved by each of our independent and disinterested directors, following
the receipt of a recommendation from an independent investment bank. The term sheet provides for the following expected terms: (i) principal
amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum of which 12% shall be payable in kind through July 2026; (iv)
a royalty interest of 8% of our net sales on a quarterly basis from July 2026 until the facility is repaid in full; and (v) we shall
issue the lenders warrants to purchase shares of common stock at an exercise price of $0.3793 per share, in an aggregate amount equal
to the quotient of the principal divided by the exercise price. The Company finalized this loan and security agreement on November 1,
2024.

Our
ability to continue to operate beyond the third fiscal quarter of 2026 will be largely dependent upon the successful commercial launch
of LungFit® PH,