Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 71

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 71
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 with generally accepted accounting principles in the United States (“U.S. GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period.
Actual results could significantly differ from those estimates. On an ongoing basis, the Company evaluates its significant estimates
and assumptions including expense recognition and accrual assumptions under consulting and clinical trial agreements, stock-based compensation,
impairment assessments, accounting for licensed rights to use technologies and other long-lived assets, the valuation of warrants, contingency
recognition and accruals and the determination of valuation allowance requirements on deferred tax attributes.

Going
Concern, Liquidity and Other Uncertainties

The
Company used cash in operating activities of $4.5 million for the three months ended June 30, 2025, and has an accumulated deficit attributable
to the stockholders of Beyond Air, Inc. of $294.0 million. The Company had cash, cash equivalents and marketable securities of $6.5 million
as of June 30, 2025. In addition, $4.0 million of cash is held on deposit by the Company’s contract manufacturer to be applied
against future purchases.

The
Company expects to incur net losses and have significant cash outflows for at least the next year, including making significant investments
in research and development. Management believes these factors raise substantial doubt about the Company’s ability to meet its
obligations with cash on hand and concluded that the Company will require additional funding within one year from the date these financial
statements are issued.

Management
is confident that the efforts to arrange financing, 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 June 2, 2025, the Company
received $2.0
million of advanced financing from a related party, a director of the Company who is also an existing lender under its Loan Agreement
(“Additional Loans”). The Company is currently arranging the terms and expects that such financing will be issued on
terms and conditions materially