Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1687

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 5
Chunk 1687
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 8 
  
    Interest rate 
     6.25% 
     7.29%
  
    Due date 
     August 2025  
     November 2024 

    F-29

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 INCOME TAXES

As of March 31, 2025,
the Company has approximately $159.9
million, $28.9
million, $6.3
million and $3.1
million of net operating losses (“NOL”) carryforwards for U.S. federal, Israeli, Irish and Cypriot tax purposes,
respectively. The U.S. federal NOL carryforwards of approximately $1.4
million, which were generated prior to March
2018 expire starting in 2035 through 2037. The NOL of approximately $158.5
million can be carried forward indefinitely but limited to offset 80%
of taxable income. The entire NOL for Israel, Ireland and Australia can be carried forward indefinitely. The Company also has state
NOL carryforwards in the amount of approximately $87.7
million expiring
during the years from 2036 to 2043. The Tax Cuts and Jobs Act of 2017 (“TCJA”) has modified the Internal Revenue
Code (“IRC”) 174 expenses related to research and development for tax years beginning after December 31, 2021. Under the
TCJA, the Company must now capitalize the expenditures related to research and development activities and amortize over five years
for U.S. activities and 15 years for non-U.S. activities using a mid-year convention. Therefore, the capitalization of research and
development costs in accordance with IRC 174 resulted in a gross deferred tax asset of $34.0
million.

The Company also has
R&D tax credits of $2.9
million expiring
during the years from 2038 to 2042. The Company has not, as yet, conducted a study of R&D credit carryforwards. This
study may result in an adjustment to the Company’s R&D credit carryforwards. We assessed our uncertain tax positions and
determined that a 25%
reserve on our federal research and development credit is appropriate and in line with industry standards. As
of March 31, 2025, the total amount of