Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1084

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1C
Chunk 1084
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 to date. We had an operating cash flow decrease of $38.2 million for the year ended March 31, 2025 and
we have experienced an accumulated loss of $286.3 million since inception through March 31, 2025. As of March 31, 2025, we had cash, cash
equivalents and marketable securities of $6.9 million and $0.2 million in restricted cash.

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 capital conservation strategy, reducing our back
office footprint, reducing staffing levels by over 30% across the company, placing our VCAP study on hold pending future funding and adjusting
our production forecasts. The Company expects an immediate benefit from these actions.

We expect to incur net losses
and have significant cash outflows for at least the next twelve months. 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 as described below, while not assured, will enable them to meet the Company’s 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 November 1, 2024, the Company entered into a Loan and Security Agreement
(the “Loan Agreement”) for a secured loan with certain lenders, including its Chief Executive Officer Steven Lisi and director
Robert Carey, for an aggregate principal balance of $11.5 million. The Loan Agreement was approved by each of the Company’s independent
and disinterested directors, following the receipt of a recommendation from an independent investment bank. The Loan Agreement provides
for the following terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum, of which 3% shall