Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 17

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 capital conservation strategy, reducing our back office footprint, reducing staffing levels by over 30%
across the company, placing our VCAP study on hold pending future funding and adjusting our production forecasts.  The Company expects
an immediate benefit from these actions.

Management
is confident that the efforts it has implemented to increase revenues and decrease expenditures, while not assured, will enable the Company
to meet its 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
September 27, 2024, Beyond Air entered into a binding term sheet for a secured loan with certain lenders including its Chief Executive
Officer Steven Lisi and director Robert Carey. The Term Sheet was approved by each of the Company’s independent and disinterested
directors, following the receipt of a recommendation from an independent investment bank. The Term Sheet provides for the following expected
terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum which shall be payable in kind through
July 2026; (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; and (v) the Company shall issue the lenders warrants to purchase shares of the Company’s common stock at an exercise price
of $0.3793 per share, in an aggregate amount equal to the quotient of the principal divided by the exercise price. The Company finalized
this loan and security agreement on November 1, 2024.

On
September 26, 2024, the Company, entered into a securities purchase agreement (the “Securities Purchase Agreement II”) with
certain institutional and accredited investors, including certain directors and officers of the Company. Pursuant to the purchase agreement,
the Company sold to the investors in a private placement offering, (i) an aggregate of 24,999,999 shares of Common Stock”, at a
purchase price of $0.5043 per Share, (ii) pre-funded warrants to purchase up to 15,848,712 shares of common stock at a purchase price
of