Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 114

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 114
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and also granted the Lenders conversion rights for up to $3.0 million in aggregate of the principal amount in common stock at a price
equal to 130% of the exercise price of the warrant (1,390,176 of common stock at $2.158), for the life of the loan (“the “Conversion
Right”).

On
June 21, 2024, the Company, in return for extending the interest-only period for an additional 6 months on the Loan and Security Agreement
with Avenue Capital, entered into an agreement to issue warrants to purchase up to 100,000 shares of common stock at an exercise price
of $1.28 per share and an additional end of term payment of $87,500 plus legal and amendment fees.

Upon
consummation of the offering contemplated by the Securities Purchase Agreement and in accordance with their original terms, the 233,843
liability classified warrants issued the lenders had their original exercise price of $5.88 per share repriced to $1.66 per share and
the original conversion price of $7.64 per share of the Conversion Right was reset to $2.16 per share.

Upon
consummation of the offering contemplated by the Securities Purchase Agreement II and in accordance with their original terms, the 233,843
liability classified warrants issued the lenders had their repriced exercise price of $1.66 per share repriced to $0.38 per share.

The
warrants are freestanding liability classified financial instruments to which a portion of the debt proceeds were allocated to warrants
and based on the warrants estimated fair value at issuance. The remaining proceeds were allocated to the long-term debt. Costs allocated
to the warrants were expensed immediately and costs allocated to the debt are recorded as a debt discount and are amortized into interest
expense over the life of the debt using the effective interest method. The conversion feature was bifurcated from the debt and was accounted
for as a derivative liability.

On
September 30, 2024, Beyond Air and the Lenders reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time
payment of $17.85 million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from
October 1, 2024 through June 30, 2026 of $12.0 million. In connection with this agreement $5.0 million was paid on September 27, 202