Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1079

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1C
Chunk 1079
---
 and those with various severe lung infections with
underlying chronic obstructive pulmonary disease (“COPD”). Our current product candidates will be subject to premarket
reviews and approvals by the FDA, certification through the conduct of a conformity assessment by a notified body in the EU for the
product to be CE marked, as well as comparable foreign regulatory authorities.

In addition to the above-mentioned
programs, we have two subsidiaries that are currently engaging in novel preclinical stage pharmaceutical research, Beyond Cancer and NeuroNos.

Financial Operations Overview

Critical Accounting Estimates

Our management’s discussion
and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared
in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of our consolidated financial statements
and related disclosures requires us to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities,
costs and expenses and related disclosures. Our critical accounting estimates are those estimates that involve a significant level of
uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base our estimates
on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an
ongoing basis. Our most critical accounting estimates include determining the accruals associated with third party providers supporting
research and development efforts.

Accrued Research and Development Expenses

As part of the process of preparing
our consolidated financial statements, we are required to estimate our accrued research and development expenses. This process involves
reviewing purchase orders, open contracts, reconciling payments and invoices and communicating with our personnel and suppliers to identify
services that have been performed on our behalf. It also includes the research and development vendors providing us with milestone and
percentage of completion reports on the statuses within each active purchase order and contract along with estimating the level of service
performed and the associated cost incurred for the services when we have not yet been invoiced or otherwise notified of the actual cost.
Our vendors invoice us in various ways via advance payments, as contractual milestones are met, or monthly in arrears for services performed.

76

We make estimates
of our accrued expenses as of each balance sheet date in our consolidated financial statements based on facts and circumstances known
to us at that time. We periodically confirm the accuracy of our estimates with the service providers and adjust