Company: XAIR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021561
Chunk: 65

Company: Beyond Air, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 them to meet the Company’s
obligations.

The
Company’s future capital needs and the adequacy of its available funds will depend on many factors, including, but not necessarily
limited to, the success and costs of commercialization of the Company’s approved product and the actual cost and time necessary
for current and anticipated preclinical studies, clinical trials and other actions needed to obtain certification or regulatory approval
of the Company’s product candidates.

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 $7.586 per share.

On June 2, 2025, the Company received $2.0 million of advanced financing
from a director that is also an existing lender under its Loan Agreement. On November 3, 2025, the Company amended and restated the original
Loan Agreement (as amended, the “Amended Loan Agreement”) to provide for and finalize the terms of the $2.0 million Additional
Loans and the issuance of new five-year warrants to purchase up to 512,821 shares of the Company’s common stock (the “Supplemental
Warrants”) with an exercise price of $1.95 per share and subject to the same terms and conditions applicable to the existing warrants
issued under the original Loan and Security Agreement (the “2024 Debt Warrants”). Concurrently,