Company: XAIR
Filing Date: 2025-11-05
Form Type: 8-K
Source: 0001493152-25-020888
Chunk: 3

Company: Beyond Air, Inc.
Filing Date: 2025-11-05
Form: 8-K
Item: Item 2.03
Chunk 3
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Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Also
on November 4, 2025, the Company entered into and closed on a note purchase agreement (the “ Note Purchase Agreement”) with
Streeterville, which provided for the issuance of a secured promissory note in the principal amount of $12,050,000 (the “ Note”).
The Company agreed to pay $50,000 to Streeterville to cover Streeterville’s transaction costs, resulting in the Company receiving
net proceeds of $12,000,000.

The
principal amount of the Note is due 24 months following the date of issuance. Interest will accrue at the rate of 15% per annum, with
no interest accruing for the first 12 months following issuance; provided however, that Streeterville is guaranteed 12 months of interest,
or $1,800,000 even if the note is redeemed or prepaid prior to the maturity date. If the Note is outstanding within 90 days of
issuance, a one-time monitoring fee will be added to the outstanding balance of the note in the amount of the outstanding balance divided
by 0.85 less the outstanding balance. The monitoring fee will be credited back to the Company on a pro-rata basis if the Company makes
a cash payment and either (i) the 200-day median trading volume is less than $1,000,000 or (ii) the market capitalization of the Company
is below $50,000,000. Streeterville shall have the right to redeem the Note commencing on the 12-month anniversary of the issuance date,
or six months from the issuance date if either (i) the Registration Statement has not been declared effective or (ii) the Company is
unable for any reason to issue common stock under the Purchase Agreement. The Company may prepay the note in part or in full at any time
without penalty. While the Note is outstanding, the Company may not issue new debt or, subject to certain exceptions, enter into variable
rate transactions.

At
any time following the occurrence of a Major Trigger Event or Minor Trigger Event (each as defined in the Note), the Lender may, upon
prior written notice to the Company, increase the outstanding balance of the Note by 9% for each occurrence of any Major Trigger Event
and 4% for each occurrence of any Minor Trigger Event (the “ Trigger Effect”), provided