Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 37

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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ARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
9 LOANS

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 issued the lenders warrants to purchase shares of the Company’s common stock at an exercise price, adjusted for the 2025 Reverse Stock Split, of $7.59 per share.

As
the repayments under the Loan Agreement are based on a fixed percentage of future net sales, the timing and amounts of future principal
payments may vary with the Company’s performance. The outstanding debt balance has been classified in the consolidated balance
sheets based on the Company’s current estimate of the repayment timing.

Components
of Loan Agreement (in thousands)

SCHEDULE
OF LOAN AND SECURITY AGREEMENT  

    June 30, 2025  
    March 31, 2025 

    Amount outstanding 
    $11,500  
    $11,500 
  
    Paid in kind interest 
     1,066  
     696 
  
    Debt discount 
     (3,249) 
     (3,249)
  
    Amortization of debt discount 
     304  
     250 
  
    Total 
    $9,621  
    $9,197 

The $2.0 million of Additional Loans, received from a related party who is a director of the Company and an
existing lender under the Loan Agreement