Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 235

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 14
Chunk 235
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 of the arrangement. Contract terms (generally one1-to-three
years) vary by customer and may include options to terminate the contract or options to extend the contract. The LungFit® PH lease
agreements are accounted for as operating leases. The non-lease components, including consumables and device-related services are combined
with the predominant lease component under the practical expedient. The fixed rental fee is recognized over the period of the lease agreement
on a straight-line basis.

The Company recognized
$3.7
million and $1.2
million in LungFit® PH lease revenues for the years ended March 31, 2025 and March 31, 2024, respectively, included revenues in
the consolidated statements of operations and comprehensive loss. The Company received approximately $3.2
million and $1.0
million in cash associated with leases which the Company is the lessor for the years ended March 31, 2025 and March 31, 2024,
respectively. The Company has recorded less than $0.1
million of deferred revenue in both of the years ended March 31, 2025 and March 31, 2024.

The following schedule presents the minimum future
lease payments under the LungFit® PH lease arrangements that were in place as of March 31, 2025 (in thousands):

 SCHEDULE
OF MATURITY OF FUTURE LEASE PAYMENTS

    Future lease payments under the LungFit® PH lease arrangements (in thousands) 
    March 31 

    2026 
    $3,615 
  
    2027 
     2,720 
  
    2028 
     1,576 
  
    2029 
     329 
  
    Total 
    $8,240 

The LungFit® PH devices are included in Property
and Equipment (Note 3) and have the useful life of five years. Depreciation expense related to leased LungFit® PH devices was $2.3
million and $1.0 million for the years ended March 31, 2025 and March 31, 2024, respectively.

The depreciation expense related to customer leased
devices is included in the cost of revenue in the consolidated statements of operations and comprehensive loss.

Capitalized sales commissions

Sales commissions related to obtaining LungFit®
PH lease agreements are accounted for as initial direct costs and are capitalized and amortized on a straight-line basis over the lease