Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1248

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 2
Chunk 1248
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 Any director involved in a related-party transaction that is being reviewed or approved must recuse himself or herself
from participation in any related deliberation or decision. Whenever possible, the transaction should be approved in advance and if not
approved in advance, must be submitted for ratification as promptly as practical.

Since
April 1, 2023, there were no transactions to which we have been a party in which the amount involved exceeded or will exceed the lesser
of $120,000 or one percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, and
in which any of our directors, executive officers or beneficial owners of more than 5% of our capital stock, or any members of their
immediate family, had or will have a direct or indirect material interest, other than the Term Sheet described below and compensation
arrangements that are described in the “Executive Compensation”, “Director Compensation” and “Long
Term Debt” sections of this Annual Report.

On
September 27, 2024, Beyond Air entered into a binding term sheet (“Term Sheet”) for a secured loan with certain lenders including
its Chief Executive Officer Steven Lisi and director Robert Carey. The Term Sheet was approved by each of the Company’s independent
and disinterested directors, and the Audit Committee 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 3% shall be payable in cash and 12% payable in kind through June
30, 2026 and thereafter all in cash; (iv) a royalty interest of 8% of the Company’s net sales on a quarterly
basis from July 2026 until the facility is repaid in full; and (v) the Company shall issue the lenders warrants to purchase shares of
the Company’s 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.

Director
Independence

Our
Board of Directors has determined that each of Erick Lucera, Yoori Lee, William Forbes and Robert F. Carey is independent within the
meaning of Rule 5605(a)(2) of the Nasdaq Listing Rules