Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 346

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 16
Chunk 346
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 have been issued if their effect is anti-dilutive, see
Note 8.

Variable Interest Entity

As the Company has the power to direct activities
of both Beyond Cancer and NeuroNos (VIE) that most significantly impact their economic performance and the right to receive benefits and
losses that may potentially be significant, these financial statements are fully consolidated with those of the Company. The non-controlling
owners’ 20% interest in Beyond Cancer’s net assets and result of operations and the non-controlling owners’ 11.76% interest
in NeuroNos’ net assets and result of operations are reported as “non-controlling interest” on the Company’s consolidated
balance sheets and as “net loss attributable to non-controlling interest” in the Company’s consolidated statements of
operations and comprehensive loss. All intercompany balances and transactions have been eliminated in the accompanying consolidated financial
statements.

Recently Adopted Accounting
Standards

In August 2020, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standards Update (“ASU”) 2020-06 (“ASU 2020-06”), Debt — Debt with Conversion
and Other Options (Subtopic 470-20), to address the complexity associated with applying U.S. GAAP to certain financial instruments
with characteristics of liabilities and equity, which the Company adopted on April 1, 2023. ASU 2020-06 eliminated the beneficial conversion (and cash conversion) accounting models in
Subtopic 470-20 that require separate accounting for embedded conversion features, and simplified the settlement assessment to determine
whether it qualifies for equity classification. In addition, the new guidance requires entities to use the if-converted method to calculate
earnings per share for all convertible instruments and to include the effect of share settlement for instruments that may be settled in
cash or shares. The Company adopted ASU 2020-06 using the modified retrospective approach and applied the guidance to all financial instruments
that were outstanding as of the beginning of 2023. As the Company had not previously separated any financial instruments under the beneficial
conversion or cash conversion accounting models, there was no cumulative effect adjustment to the opening balance of retained earnings
as a result of adopting ASU 2020-06.

In November 2023, the FASB issued ASU-2023-07, Improvements
to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures about significant segment expenses.