Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 16

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 has a direct or indirect material interest in any
Company transaction, then the Audit Committee would decide whether or not to approve or ratify the transaction. The Audit Committee will
use any process and review any information that it determines is appropriate. All related party transactions will be disclosed in accordance
with SEC rules. The following related party transaction is disclosed for the three months ended December 31, 2024:

On September 27, 2024, Beyond Air entered into a
binding term sheet for a secured loan with certain lenders including its Chief Executive Officer Steven Lisi and director Robert
Carey. The Term Sheet was approved by each of the Company’s independent and disinterested directors, and the Audit Committee
following the receipt of a recommendation from an independent investment bank. The Term Sheet provides for the following expected
terms: (i)
principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum which shall be payable in kind through July
2026; (iv) a royalty interest of 8% of the Company’s net sales on a quarterly basis from July 2026 until the facility is
repaid in full; and (v) the Company shall issue the lenders warrants to purchase shares of the Company’s common stock at an
exercise price of $0.3793 per share, in an aggregate amount equal to the quotient of the principal divided by the exercise price.
The Company finalized this loan and security agreement on November 1, 2024.

Liquidity
and Other Uncertainties

The
Company used cash in operating activities of $31.3 million for the nine months ended December 31, 2024, and has accumulated losses attributable
to the stockholders of Beyond Air of $278.3 million. The Company had cash, cash equivalents and marketable securities of $10.9 million
as of December 31, 2024. Management believes these factors raise substantial doubt about the Company’s ability to meet its obligations
with cash on hand, however, management believes this doubt is alleviated through plans for increased revenues and decreased expenditures,
many of which have already been implemented, enabling increased cash flows. The company has recently signed agreements with TrillaMed
(providing access to Department of Defense and Veterans Affairs hospitals), Healthcare Links (expanding access to group purchasing organizations
and integrated delivery networks) and Business Asia Consultants (accelerating global expansion) which will drive increased revenues.
The company has implemented a