Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 75

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 12
Chunk 75
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2.87  
     1.77 
  
    Change to foreign NOL’s 
     0.00  
     0.00 
  
    Effective income tax expense rate 
     0.00% 
     0.00%

Inflation Reduction Act

On August 16, 2022, the Inflation
Reduction Act of 2022 (the “Act”) was signed into law. The Act includes a new 15% corporate minimum tax and a 1% excise tax
on the value of corporate stock repurchases, net of new share issuances, after December 31, 2022. These provisions did not have a material
impact on the Company’s consolidated financial position as of March 31, 2025.

    F-30

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13 COMMITMENTS AND CONTINGENCIES 

License Agreements

In August 2015, Beyond Air Ltd., a wholly-owned subsidiary
of the Company (“BA Ltd.”) entered into an Option Agreement (the “Option Agreement”) with Pulmonox Technologies
Corporation (“Pulmonox”) whereby BA Ltd. acquired the option (the “Option”) to purchase certain intellectual property
assets and rights. On January 13, 2017, BA Ltd. exercised the Option and paid $0.5 million to Pulmonox. BA Ltd. became obligated to make
certain one-time development and sales milestone payments to Pulmonox, commencing with the date on which BA Ltd. receives regulatory approval
for the commercial sale of the first product candidate qualifying under the Option Agreement. These milestone payments are capped at a
total of $87 million across three separate and distinct indications that fall under the agreement, with the majority of them, approximately
$83 million, being sales-related based on cumulative sales milestones for each of the three products. BA Ltd. is not currently developing
any qualifying products.

On January 31, 2018, the Company entered into an agreement
(the “NitricGen Agreement”) with NitricGen, Inc. (“NitricGen”) to acquire a global, exclusive, transferable license
and associated assets including intellectual property, know-how, trade secrets and confidential information from NitricGen related to
the LungFit®. The Company acquired the licensing right to use the technology and agreed to pay NitricGen a total of $