Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1277

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 2
Chunk 1277
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. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

Going
Concern, Liquidity and Other Uncertainties

The Company used cash in operating activities of $38.2
million for the year ended March 31, 2025, and has an accumulated deficit attributable to the stockholders of Beyond Air, Inc. of $286.3
million. The Company had cash and cash equivalents and marketable securities of $6.9 million as of March 31, 2025. In addition, $4.4 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 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 be payable in cash and 12% payable
in kind through June 30, 2026 and thereafter all in cash; (iv) a royalty interest of 8%