Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 446

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 8
Chunk 446
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 upon the transparency of inputs to the valuation
of an asset or liability on the measurement date. The three levels are defined as follows:

Level 1—inputs to the valuation methodology
are quoted prices (unadjusted) for an identical asset or liability in an active market.

Level 2—inputs to the valuation methodology
include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs
are observable for substantially the full term of the asset or liability.

Level 3—inputs to the valuation methodology
are unobservable and significant to the fair value measurement of the asset or liability.

As of March 31, 2025 and March 31, 2024, the Company’s
financial instruments included restricted cash, marketable securities, accounts payable, long-term debt and liability classified warrants.
In addition, as of March 31, 2024, the Company’s financial instruments also included derivative liabilities. The carrying amounts
reported in the accompanying consolidated financial statements for cash and cash equivalents, restricted cash and marketable securities
approximate their respective fair values because of the short-term nature of these accounts. The carrying value of the Company’s
long-term debt approximates fair value based on current interest rates for similar types of borrowings and is in Level 3 of the fair value
hierarchy. The liability classified warrants and derivative liabilities are each recorded at their fair value and are Level 3 of the fair
value hierarchy.

The following table presents, for each of the fair
value hierarchy levels required under ASC 820, the Company’s assets and liabilities that are measured at fair value on a recurring
basis:

The fair value amounts as of March 31, 2025 are:

 SCHEDULE OF FAIR VALUE ON A RECURRING BASIS

    (in thousands) 
    Total  
    Level 1  
    Level 2  
    Level 3 

    Marketable securities: 

    Mutual funds 
    $2,252  
    $2,252  
     -  
     - 
  
    Total assets measured and recorded at fair value 
    $2,252  
    $2,252  
    $-  
    $- 

    Liabilities: 

    Warrant liability 
    $38  
    $-  
    $-  
    $38 
  
    Total liabilities measured and recorded at fair value 
    $38  
    $-