Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1904

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 7
Chunk 1904
---
 liability 
    $38  
    $-  
    $-  
    $38 
  
    Total liabilities measured and recorded at fair value 
    $38  
    $-  
    $-  
    $38 

    F-12

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

The fair value amounts as of March 31, 2024 are:

    (in thousands) 
    Total  
    Level 1  
    Level 2  
    Level 3 

    Marketable securities : 

    Government securities 
    $16,388  
    $16,388  
     -  
     - 
  
    Mutual funds 
     6,702  
     6,702  
     -  
     - 
  
    Total assets measured and recorded at fair value 
    $23,090  
    $23,090  
    $-  
    $- 

    Liabilities: 

    Warrant liability 
    $275  
    $-  
    $-  
    $275 
  
    Derivative liability 
     1,314  
     -  
     -  
     1,314 
  
    Total liabilities measured and recorded at fair value 
    $1,589  
    $-  
    $-  
    $1,589 

Level 3 Valuation

The common stock warrants issued
in connection with the Loan and Security Agreement (as defined below) in June 2023 (Note 10) are recorded as a warrant liability within
the consolidated balance sheet as of March 31, 2025 as the warrants contain certain settlement features that are not indexed to the Company’s
own stock. In addition, the conversion feature embedded within the long-term debt required bifurcation as certain adjustments to the conversion
price were not indexed to the Company’s own stock and recorded as a derivative liability. The warrants and derivative liability
are remeasured each reporting period with the change in fair value recorded to other income (expense) in the consolidated statements of
operations and comprehensive loss until the warrants and derivative are exercised, expired, reclassified or otherwise settled. The significant