Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1162

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1C
Chunk 1162
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this information in strategic decisions related to capital allocations, including investments in assets, research and development activities,
and human capital.

The Company’s reportable segments at March 31, 2024 included Beyond
Air and Beyond Cancer. Following the March 24, 2025 private placement and reorganization of the Company’s
neurology business into the NeuroNos companies,
the Company’s operations became further classified into three segments, Beyond Air, Beyond Cancer and NeuroNos. Each segment has
its own management team, board of directors, corporate officers and legal entities. As of March 31, 2025, Beyond Air, Inc. owned 80% of
the common stock of Beyond Cancer and 88.2% of the common stock of NeuroNos.

The Beyond
Air segment includes unallocated corporate expenses associated with the public company fees as well as all corporate related assets and
liabilities.

    F-16

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

Inventories

Raw materials, work in progress and finished goods
are stated at the lower of cost or net realizable value. Cost comprises direct materials, third-party manufacturing costs and shipping
costs incurred to deliver goods to the Company’s central warehouse location.

Costs are assigned to individual items of inventory
on the basis of weighted average costs. Inventory items are tracked by batch/lot number for specific identification whenever possible.
The Company uses judgement to determine the proportion of inventory items held which will be provided to a hospital as part of its service
delivery versus the inventory items that will be provided free of charge on hospital evaluations. Inventory items held for hospital evaluations
have no realizable value.

Leases

Operating lease assets are included within operating
lease right-of-use assets, and the corresponding operating lease obligation on the consolidated balance sheets as of March 31, 2025
and March 31, 2024 in accordance with ASC 842, Leases. The Company has elected not to present short-term leases as these leases
have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably
certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the
lease term at commencement date. Because most of