Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 221

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 14
Chunk 221
---
 Security Agreement conversion feature (Note 10) 
     -  
     1,390,176 
  
    Total 
     80,248,257  
     23,417,131 
  
    Anti-dilutive
    securities 
     80,248,257  
     23,417,131 

NOTE 9 CIRCASSIA AGREEMENT

On January 23, 2019, the Company entered into an agreement
for commercial rights (the “Circassia Agreement”) with Circassia Limited and its affiliates (collectively, “Circassia”)
for PPHN and future related indications at concentrations of < 80 ppm in the hospital setting in the United States and China. On December
18, 2019, the Company terminated the Circassia Agreement.

On May 25, 2021, the Company
and Circassia entered into a settlement agreement (the “Settlement Agreement”) resolving all claims by and between both parties
and mutually terminating the Circassia Agreement. Pursuant 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