Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 748

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 748
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 pay any principal or interest under the Loan Agreement or any note in connection therewith;

    ●
    any representation or warranty made shall prove to have been false or misleading in any material respect; and

    ●
    certain specified insolvency and bankruptcy-related events.

Subject to any applicable cure
period set forth in the Loan Agreement, all amounts outstanding with respect to the loan (principal and accrued interest), as well as
any other obligations and amounts owing under the Loan Agreement, would become due and payable at the option of the lenders. Our assets
or cash flow may not be sufficient to fully repay our obligations under the Loan Agreement if the obligations thereunder are accelerated
upon any events of default. Further, if we are unable to repay, refinance or restructure our obligations, the lenders could proceed to
protect and enforce their rights under the Loan Agreement by exercising such remedies (including foreclosure on the assets securing our
obligations under the Loan Agreement) as are available to the lenders and in respect thereof under applicable law, either by suit in equity
or by action at law, or both, whether for specific performance of any covenant or other agreement contained in the Loan Agreement or the
other loan documents or in aid of the exercise of any power granted in the Loan Agreement or other loan documents. The foregoing would
materially and adversely affect the ongoing viability of our business.

Our Loan Agreement contains restrictions that limit our flexibility
in operating our business.

The Loan Agreement contains various
covenants that limit our ability to engage in specified types of transactions without the prior consent of the lenders. These covenants
limit our ability to, among other things:

    ●
    create, incur or assume additional indebtedness; 

    ●
    subject to certain exceptions, make restricted payments, including paying dividends on, repurchasing or making distributions with respect to our common stock; and 

    ●
    consolidate, merge, sell or otherwise dispose of all or substantially all of our assets.

The covenants in the Loan Agreement
may limit our ability to take certain actions that may be in our long-term best interests. In the event that we breach one or more covenants,
the lenders may choose to declare an event of default and require that we immediately repay all amounts outstanding under the Loan Agreement,
plus penalties and interest and foreclose on the collateral granted to them to secure the obligations under the Loan Agreement. Such repayment
could have a material adverse effect on our business, operating results and financial condition.

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