Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 149

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 13
Chunk 149
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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 consolidated balance sheets
based on the Company’s current estimate of the repayment timing.

As part of the Loan
Agreement, the Company issued 15,159,504 warrants to the lenders. The fair value of the warrants was determined using a
Black-Scholes model, resulting in a fair value of $4.2 million. The warrants are classified as an equity instrument and therefore,
the allocation of the loan proceeds to the instrument was based on the relative fair value of the loan and warrants. The fair value
of the Loan was determined to equal the Loan’s carrying amount on the closing date. Accordingly, $3.1
million was allocated to the warrants and recorded as a debt discount. The following table summarizes the assumptions used in estimating the fair value of the warrants at issuance:

SCHEDULE OF FAIR VALUE METHOD ALLOCATION

    Risk-free interest rate 
     3.58%
  
    Expected volatility (Beyond Air) 
     93.4%
  
    Dividend yield 
     0%
  
    Expected terms (in years) 
     5 

SCHEDULE
OF MATURITY OF LONG TERM LOAN

Components of Loan Agreement (in thousands)

SCHEDULE
OF LOAN AND SECURITY AGREEMENT 

    March 31, 2025  
    March 31, 2024 

    Amount outstanding 
    $11,500  
    $- 
  
    Paid in kind interest 
     696  
     - 
  
    Debt discount 
     (3,249) 
     - 
  
    Amortization of debt discount 
     250  
     - 
  
    Total 
    $9,197  
    $- 

NOTE 11 LOAN PAYABLE

As of March 31, 2025 and March 31, 2024 in connection
with the Company’s insurance policy, a loan was used to finance part of the premium. The details concerning the loan are as follows:

SCHEDULE
OF LOAN PAYABLE

    March 31, 2025  
    March 31, 2024 

    Amount outstanding (thousands) 
    $579  
    $660 
  
    Monthly payments (th