Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 119

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 13
Chunk 119
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    Derivative 
  
    Expected term (in years) 
     4.25  
     3.25 
  
    Volatility 
     88% 
     86%
  
    Risk-free rate 
     4.09% 
     4.38%

The table presented
below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrants and derivatives for the
years ended March 31, 2025 and March 31, 2024 (in thousands):

 SCHEDULE OF CHANGES IN FAIR VALUE OF WARRANTS AND DERIVATIVES

    Warrants  
    Derivative 

    Balance at April 1, 2023
     
    $
    -

    $
    -

    Issuances

    885

    1,361

    Change in fair value

    (611
    )

    (48
    )

    Balance at March 31, 2024 
    $275  
    $1,314 
  
    Change in fair value 
     (237) 
     (1,314)
  
    Balance at March 31, 2025 
    $38  
    $- 

    F-13

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

Warrant Liability

The Company classifies warrants
as equity for any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash
settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies warrants as assets or
liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs
and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement
in shares (physical settlement or net-share settlement). Such warrants are subject to remeasurement at each consolidated balance sheet
date and any change in fair value is recognized as a component of other expense on the consolidated statements of operations and comprehensive
loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of such