Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1059

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1B
Chunk 1059
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uant to the terms of the Settlement Agreement, the Company agreed to pay Circassia
$10.5
million in three installments, which have all been paid as of March 31, 2025. As of March 31, 2025 and March 31, 2024 $0.0
million and $4.5 million is included in accrued liabilities and $4.5 million was paid to Circassia as the final settlement payment in
September 2024. Additionally, beginning in year three post-approval, Circassia will receive
a quarterly royalty payment equal to 5%
of LungFit® PH net sales in the U.S. This royalty will terminate once the aggregate payment reaches $6.0
million. As of March 31, 2025, less than $0.1
million of royalty has been paid.

    F-27

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 LOANS

Loan and Security Agreement

On June 15, 2023,
Beyond Air, Inc. and its wholly-owned subsidiary, Beyond Air Ltd., entered into a Loan and Security Agreement (the “2023 Loan
and Security Agreement”) with Avenue Capital Management II, L.P., as administrative agent and collateral agent (the
“Agent”) and the Lenders. Also on June 15, 2023, the Company entered into a Supplement to the Loan and Security
Agreement (collectively with the Agreement, the “2023 Loan Agreement”) with the Agent and the Lenders. A total of $17.5
million was advanced under the loan. The loan principal was repayable in equal monthly installments beginning on January 1, 2025.
The loans bore interest at a rate per annum equal to the greater of (i)
the prime rate, as published by the Wall Street Journal from time to time, plus 3.75% and (ii) 12.00%. For the years
ended March 31, 2025 and March 31 2024, the Company incurred and paid $1.1
million and $1.8
million, respectively in interest on the loan.

Also, on June 15, 2023, the Company granted the Lenders
warrants to purchase an aggregate of 233,843 shares of common stock at an exercise price of the lesser of $5.88 or the