Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 712

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1
Chunk 712
---
 ASU 2020-06 eliminated the beneficial conversion (and cash conversion) accounting models in
Subtopic 470-20 that require separate accounting for embedded conversion features, and simplified the settlement assessment to determine
whether it qualifies for equity classification. In addition, the new guidance requires entities to use the if-converted method to calculate
earnings per share for all convertible instruments and to include the effect of share settlement for instruments that may be settled in
cash or shares. The Company adopted ASU 2020-06 using the modified retrospective approach and applied the guidance to all financial instruments
that were outstanding as of the beginning of 2023. As the Company had not previously separated any financial instruments under the beneficial
conversion or cash conversion accounting models, there was no cumulative effect adjustment to the opening balance of retained earnings
as a result of adopting ASU 2020-06.

In November 2023, the FASB issued ASU-2023-07, Improvements
to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures about significant segment expenses. The amendments
in this update requires public entities to disclose significant segment expenses that are regularly provided to the Company’s Chief
Executive Officer as the Company’s Chief Operating Decision Maker (CODM). This ASU is effective for fiscal years beginning after December 15, 2023
(fiscal 2025 for the Company). We adopted this standard effective April 1, 2024 retrospectively for all periods presented. See
Note 14, “Variable Interest Entities,” for further information regarding our segment reporting.

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements
to Tax Disclosures (Topic 740), to enhance the disclosures related to income taxes, including the rate reconciliation and information
on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company), with early
adoption permitted. The Company is assessing the impact of this ASU, and upon adoption, may be required to include certain additional
disclosures in the effective income tax rate reconciliation in the footnotes to the Consolidated Financial Statements.

In November 2024, the FASB issued ASU 2024-03, Income
Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This standard requires disclosure