Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 143

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 143
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the Settlement Agreement, the Company agreed to pay Circassia $10.5 million in three installments. The first payment of $2.5 million
was triggered upon FDA approval for the LungFit® PH (fixing the Initial Payment Due Date at July 28, 2022). Thereafter,
the Company paid $3.5 million to Circassia on the first anniversary of the Initial Payment Due Date and $4.5 million on the second anniversary
of the Initial Payment Due Date, which was in the second fiscal quarter of 2025. Additionally, beginning in the third fiscal quarter
of 2025, Circassia will receive a quarterly royalty payment equal to 5% of LungFit® PH net sales in the U.S. until the
final $6.0 million has been paid.

On
February 4, 2022, we entered into the 2022 ATM. Under the 2022 ATM, we may sell shares of our common stock having aggregate sales
proceeds of up to $50.0 million, from time to time and at various prices. Pursuant to the “baby shelf rules” promulgated
by the SEC, if our public float is less than $75.0 million as of specified measurement periods, the number of shares of common stock
that may be offered and sold by us under a Form S-3 registration statement, including pursuant to the 2022 ATM, in any twelve-month
period is limited to an aggregate amount that does not exceed one-third of our public float. As of December 31, 2024, due to the
SEC’s “baby shelf rules,” we were permitted to sell up to $9.6 million of shares of common stock pursuant to the
2022 ATM. We will remain subject to the “baby shelf rules” under the Form S-3 registration statement until such time as
our public float exceeds $75.0 million. If shares of our common stock are sold, there is a 3% fee paid to the sales
agent.

On
June 15, 2023, the Company and its wholly owned subsidiary, Beyond Air Ltd. entered into a Loan and Security Agreement (the “LSA”)
with Avenue Capital Management II, L.P., as administrative agent and collateral agent (the “Agent”), Avenue Venture Opportunities
Fund, L.P., a Delaware limited partnership (“Avenue”), and Avenue Venture Opportunities Fund II, L.P, a Delaware limited
partnership (“