Company: XAIR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021561
Chunk: 31

Company: Beyond Air, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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As of the date of this report, the Company has not provided such notice. The Company has opened several non-cancellable purchase orders
and the outstanding amount remaining under the purchase order as of September 30, 2025 was approximately $0.5 million with this supplier.
This supplier holds $3.8 million of restricted cash to partially secure materials on the Company’s behalf recorded in other current
assets and prepaid expenses.

Contingencies

From
time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not expect
the outcome of such proceedings, either individually or in the aggregate, to have a material effect on its financial position, cash flows
or results of operations.

    20

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
9 LOANS

On
November 1, 2024, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) for a secured loan with certain
lenders, including its Chief Executive Officer Steven Lisi and director Robert Carey, for an aggregate principal balance of $11.5 million.
The Loan Agreement was approved by each of the Company’s independent and disinterested directors, following the receipt of a recommendation
from an independent investment bank. The Loan Agreement provides for the following 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; (v) the Company’s obligations will be secured by substantially all of the Company’s assets and (vi) the Company
issued the lenders warrants to purchase shares of the Company’s common stock at an exercise price, adjusted for the 2025 Reverse
Stock Split, of $7.59 per share.

As
the repayments under the Loan Agreement are based on a fixed percentage of future net sales, the timing and amounts of future principal
payments may vary with the Company’s performance. The outstanding debt balance has been classified in the condensed consolidated
balance sheets based on the Company’s current estimate