Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1705

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 6
Chunk 1705
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 anticipated
preclinical studies, clinical trials and other actions needed to obtain certification or regulatory approval of the Company’s product
candidates.

On November 1, 2024, the Company entered into a Loan and Security Agreement
(the “Loan Agreement”) for a secured loan with certain lenders, including its Chief Executive Officer Steven Lisi and director
Robert Carey, for an aggregate principal balance of $11.5 million. The Loan Agreement was approved by each of the Company’s independent
and disinterested directors, following the receipt of a recommendation from an independent investment bank. The Loan Agreement provides
for the following terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum, of which 3% shall be
payable in cash and 12% payable in kind through June 30, 2026 and thereafter all in cash; (iv) a royalty interest of 8% of the Company’s
net sales on a quarterly basis from July 2026 until the facility is repaid in full; (v) the Company’s obligations will be secured
by substantially all of the Company’s assets and (vi) the Company shall issue the lenders warrants to purchase shares of the Company’s
common stock at an exercise price of $0.3793 per share.

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.

On September 26, 2024, the Company,
entered into a securities purchase agreement (the “Securities Purchase Agreement II”) with certain institutional and accredited
investors, including certain directors and officers of the Company. Pursuant to the purchase agreement, the Company sold to the investors
in a private placement offering, (i) an aggregate of 24,999,999 shares of Common Stock”, at a purchase price of $0.5043 per Share,
(ii) pre-funded warrants to purchase up to 15,848,712 shares of common stock at a purchase price of $0.5042 per pre-funded warrant and
(iii) warrants to purchase up to 40,848,711 shares of common stock, for aggregate for gross proceeds of $20.6 million (which includes
$2.0 million from related parties