Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1585

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 5
Chunk 1585
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 on our strategic objectives,
results of operations and financial condition.

On May 25, 2021, the Company and
Circassia entered into a settlement agreement (“the Settlement Agreement”) resolving all claims by and between the parties
and mutually terminating the agreement with Circassia disclosed in Note 9 to our financial statements for the fiscal year ended March
31, 2025. Pursuant to the terms of the Settlement Agreement, the Company agreed to pay Circassia $10.5 million in three installments,
all of which has been paid. Additionally, beginning in the third fiscal quarter of 2025, Circassia will receive a quarterly royalty payment
equal to 5% of LungFit® PH net sales in the U.S. until the final $6.0 million has been paid. As of March 31, 2025, less
than $0.1 million of royalty has been paid.

On February 10, 2025, we entered
into the At-The Market Offering Sales Agreement with BTIG, Inc. (the “2025 ATM”). Under the 2025 ATM, we may sell shares of
our common stock having aggregate sales proceeds of up to $35.0 million, from time to time and at various prices. Pursuant to the “baby
shelf rules” promulgated by the SEC, if our public float is less than $75.0 million as of specified measurement periods, the number
of shares of common stock that may be offered and sold by us under a Form S-3 registration statement, including pursuant to the 2025 ATM,
in any twelve-month period is limited to an aggregate amount that does not exceed one-third of our public float. As of March 31, 2025,
due to the SEC’s “baby shelf rules,” we were permitted to sell up to $6.6 million of shares of common stock pursuant
to the 2025 ATM. We will remain subject to the “baby shelf rules” under the Form S-3 registration statement until such time
as our public float exceeds $75.0 million. If shares of our common stock are sold, there is a 2.5% fee paid to the sales agent.

Our ability to continue to operate
beyond the third fiscal quarter of 2026 will be largely dependent upon the successful commercial launch of LungFit® PH,
as well as obtaining partners in other parts of the world, and raising additional funds to finance our activities until we are generating