Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1697

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 5
Chunk 1697
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 31, 2024.

The following schedule presents the minimum future
lease payments under the LungFit® PH lease arrangements that were in place as of March 31, 2025 (in thousands):

 SCHEDULE
OF MATURITY OF FUTURE LEASE PAYMENTS

    Future lease payments under the LungFit® PH lease arrangements (in thousands) 
    March 31 

    2026 
    $3,615 
  
    2027 
     2,720 
  
    2028 
     1,576 
  
    2029 
     329 
  
    Total 
    $8,240 

The LungFit® PH devices are included in Property
and Equipment (Note 3) and have the useful life of five years. Depreciation expense related to leased LungFit® PH devices was $2.3
million and $1.0 million for the years ended March 31, 2025 and March 31, 2024, respectively.

The depreciation expense related to customer leased
devices is included in the cost of revenue in the consolidated statements of operations and comprehensive loss.

Capitalized sales commissions

Sales commissions related to obtaining LungFit®
PH lease agreements are accounted for as initial direct costs and are capitalized and amortized on a straight-line basis over the lease
term. Total capitalized costs for the years ended March 31, 2025 and March 31, 2024 were immaterial.

NOTE 17 –
SUBSEQUENT EVENTS

Subsequent
to March 31, 2025, the Company received commitments from certain lenders under the Loan Agreement to provide additional financing of
at least $2.0 million in aggregate principal. The additional loans are expected to be issued on terms and conditions that are materially
consistent with those of the Loan Agreement.

F-33