Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 115

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 115
---
4
in partial settlement. The $5.0 million settlement was treated as a partial extinguishment of the loan agreement and therefore, proportionate
amounts of unamortized discount and deferred financing costs were written off during the three months ended December 31, 2024, resulting
in the company recording loss on extinguishment of debt of $1.9 million in the condensed consolidated statements of operations. The final
$12.85 million was paid on October 4, 2024.

     24 

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
10 LOANS (continued)

Components
of Loan and Security Agreement (in thousands)

SCHEDULE OF LOAN AND SECURITY AGREEMENT 

    December 31, 2024  
    March 31, 2024 

    Amount outstanding 
    $-  
    $17,500 
  
    Capitalized interest 

    Debt discount 
     -  
     (4,541)
  
    Amortization of debt discount 
     -  
     1,149 
  
    Final payment liability 
        -  
     613 
  
    Total 
    $-  
    $14,721 

On
November 1, 2024, the Company entered into a loan and security agreement for a secured loan with certain lenders including its Chief
Executive Officer Steven Lisi and director Robert Carey. 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 expected terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum which shall be
payable in kind through July 2026; (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. On September 27, 2024, the Company received $7.