Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 507

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1
Chunk 507
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 improve the success of antimicrobial and anti-viral treatments by mimicking the body’s natural defense mechanism and thereby directly reduce viral infectivity, as well as antibiotic drug resistant bacteria.

    ● 
    NO is used naturally by the body for vasodilation and we believe that the benefits to patients with various medical conditions will be seen via vasodilation when delivered with our system.

NitricGen License

On January 31, 2018, the Company
entered into a definitive agreement to acquire a global, exclusive, perpetual, transferable license to the eNOGenerator and associated
critical assets including intellectual property, know-how, trade secrets and confidential information (the “License”) from
NitricGen Inc. (“NitricGen”). The eNOGenerator is a novel and precise delivery system that uses NO generated from ambient
air with a novel NO generator.

The Beyond Air LungFit®
system, which incorporates the eNOGenerator, has been designated as a medical device by the FDA. The eNOGenerator can generate NO on demand
for delivery to the lungs at concentrations ranging from 0.5 to 400 ppm. With the License, the Company expects that it will be able to
target all conditions requiring NO at any concentration, regardless of the need for intermittent or continuous dosing.

Under the terms of the License,
the Company agreed to pay NitricGen an aggregate of $2 million in up-front, clinical, and regulatory milestone payments, with the majority
pertaining to regulatory milestones, as well as royalties on net sales of the delivery system containing the eNOGenerator at a percentage
in the low-single digits. As partial consideration for the License, we issued to NitricGen warrants to purchase 100,000 shares of our
common stock at an exercise price of $6.90 per share. To date, $1.7 million has been paid for milestones that were earned. As of March
31, 2025 the remaining future milestone payments totaled $0.3 million.

14

Strategies

Our objective is to build a leading
medical device and biopharmaceutical company that develops and commercializes patented and proprietary products for the treatment of respiratory
infections and diseases, with an initial focus on the treatment of PPHN, NTM and severe infections in COPD patients, among others.
We are exploring and testing the effects of NO on solid tumors through our subsidiary, Beyond Cancer. Additionally, we are exploring the
development of nNOS inhibitors for the treatment of ASD and other