Company: XAIR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021561
Chunk: 32

Company: Beyond Air, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 of the repayment timing.

Components
of Loan Agreement (in thousands)

SCHEDULE
OF LOAN AND SECURITY AGREEMENT 

    September
    30, 2025  
    March
    31, 2025 

    Amount outstanding 
    $11,500  
    $11,500 
  
    Paid in kind interest 
     1,451  
     696 
  
    Debt discount 
     (3,249) 
     (3,249)
  
    Amortization of debt discount 
     383  
     250 
  
    Total 
    $10,085  
    $9,197 

On
June 2, 2025, the Company received $2.0 million of advanced financing from a related party, a director of the Company who is also an
existing lender under its Loan Agreement (“Additional Loans”). The Company is currently arranging the terms and expects that
such financing will be issued on terms and conditions materially consistent with those of the Loan Agreement. The
$2.0 million of Additional Loans is reported as other long-term liabilities on the Company’s unaudited condensed consolidated balance sheet, as of September
30, 2025.

NOTE
10 – LEASE REVENUES

The
Company leases the LungFit® PH device to customers and receives a fixed rental fee over the term of the arrangement. Contract terms
(generally one1-to-three years) vary by customer and may include options to terminate the contract or options to extend the contract.
The LungFit® PH lease agreements are accounted for as operating leases. The non-lease components, including consumables and device-related
services are combined with the predominant lease component under the practical expedient. The fixed rental fee is recognized over the
period of the lease agreement on a straight-line basis.

The
Company recognized $1.4 million and $0.8 million in LungFit® PH lease revenues for the three months ended September 30, 2025 and
September 30, 2024, respectively, reported as revenues in the accompanying condensed consolidated statements of operations. The Company
received approximately $1.4 million and $0.6 million in cash associated with leases which the Company is the lessor for the three months
ended September 30, 2025 and September 30, 2024, respectively. The Company has recorded $0.1 million and $0.1 million in deferred revenue
as of