Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 600

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1
Chunk 600
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 current licensing arrangements on acceptable
terms, we may be unable to successfully develop and commercialize the affected approved product or product candidates and this may affect
our financial performance.

63

We may be involved in lawsuits or post-grant
proceedings to protect or enforce our patents or the patents of our licensor, which could be expensive, time-consuming and unsuccessful.

We may face risk if our competitors
infringe the patents of any licensor with whom we may be involved. If any such licensing partner were to initiate legal proceedings against
a third party to enforce a patent covering one of our product candidates, the defendant could counterclaim that the patent covering our
product candidate is invalid and/or unenforceable. In patent litigation in the U.S., defendant counterclaims alleging invalidity and/or
unenforceability are commonplace. Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements,
including lack of novelty, obviousness or non-enablement. Grounds for an unenforceability assertion could be an allegation that someone
connected with prosecution of the patent withheld relevant information from the USPTO, or made a misleading statement, during prosecution.
The outcome following legal assertions of invalidity and unenforceability is unpredictable.

Pending patent applications may
be subject to third-party pre-issuance submission of prior art to the USPTO, and any patents issuing thereon may become involved in derivation,
reexamination, inter parties review, post grant review, interference proceedings or other patent office proceedings in the U.S. challenging
our patent rights.

Proceedings provoked by third
parties or brought by us or declared by the USPTO may be necessary to determine the priority of inventions with respect to our patents
or patent applications or those of our licensor. An unfavorable outcome could require us to cease using the related technology or to attempt
to license rights to it from the prevailing party. Our business could be harmed if the prevailing party does not offer us a license on
commercially reasonable terms. Our defense of litigation or proceedings may fail and, even if successful, may result in substantial costs
and distract our management and other employees. In addition, the uncertainties associated with litigation could have a material adverse
effect on our ability to raise the funds necessary to continue our clinical trials, continue our research programs, license necessary
technology from third parties or enter into development partnerships that would help us bring our approved product and product candidates
to market.

Furthermore, because of the substantial