Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 756

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 756
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 development, and other confidential data is critical to our business, and our customers
and employees have a high expectation that we will adequately protect their personal information. The regulatory environment governing
information, security and privacy laws is increasingly demanding and continues to evolve and a number of states have adopted laws and
regulations that may affect our privacy and data security practices regarding the use, disclosure and protection of PII. For example,
the California Consumer Privacy Act (“the CCPA”), among other things, creates individual privacy rights and imposes increased
obligations on companies handling PII.

Although our computer and communications
hardware are protected through physical and software safeguards, they are still vulnerable to system malfunction, computer viruses, malware
and ransomware, and other cybersecurity threats such as phishing and social engineering attacks. These events could lead to the unauthorized
access of our information technology systems and result in financial loss and the misappropriation or unauthorized disclosure of confidential
information belonging to us, our employees, partners, customers, or suppliers. The techniques used by criminal elements to attack computer
systems are sophisticated, change frequently and may originate from less regulated and remote areas of the world. As a result, we may
not be able to address these techniques proactively or implement adequate preventative measures. If our information technology systems
are compromised, we could be subject to fines, damages, litigation and enforcement actions, incur financial losses, suffer reputational
damage, and lose trade secrets or other confidential information, each of which could significantly harm our business.

37

Healthcare legislative or regulatory reform
measures, including government restrictions on pricing and reimbursement, may have a negative impact on our business and results of operations.

In the U.S., there have been and
continue to be a number of legislative and regulatory changes and proposed changes to contain healthcare costs. For example, in March
2010, the Patient Protection and Affordable Care Act (“ACA”) was enacted, which, among other things, substantially changes
the way health care is financed by both governmental and private insurers, and significantly impacts the U.S. medical device industry.
Some of the provisions of the ACA have been subject to judicial challenges as well as efforts to modify them or alter their interpretation
or implementation. For example, the Tax Cuts and Jobs Act of 2017 (“Tax Act”), includes a provision that eliminated the tax-based
shared responsibility payment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part
of a year, commonly referred to as the “individual mandate,”