Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 116

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 116
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5 million as an advance payment of this loan.

As
part of the loan and security agreement, the company issued warrants to the lenders. The 15,159,504 warrant shares had a value of $0.28
per warrant, resulting in a fair value (based on a Black-Scholes model) of $4.2 million. The warrant is classified as an equity instrument and therefore, the allocation
of the loan proceeds should be allocated based on the relative fair value of the loan and warrant. The Company, however, determined that
the residual method will approximately yield the same results, under which the value of the Loan will be determined to equal the Loan’s
carrying amount (after deduction the discount attributable to the fair value of the warrant and debt issuance costs) on the closing date.
The residual value attributable to the Loan is deemed to approximate the fair value.  resulting in an allocation of $3.1 million as debt discount
at December 31, 2024.

SCHEDULE
OF RELATIVE FAIR VALUE METHOD ALLOCATION

    December 31, 2024 
  
    Risk-free interest rate 
     3.58%
  
    Expected volatility (Beyond Air) 
     93.4%
  
    Dividend yield 
     0%
  
    Expected terms (in years) 
     5 

SCHEDULE
OF MATURITY OF LONG TERM LOAN

    Maturity of Long-Term Loan (in thousands) 
    December 31, 2024 

    2025 
    $- 
  
    2026 
     1,307 
  
    2027 
     5,225 
  
    2028 
     5,309 
  
    Total 
    $11,841 

Components
of Loan Agreement (in thousands)

SCHEDULE OF LOAN AND SECURITY AGREEMENT 

    December 31, 2024  
    March 31, 2024 

    Amount outstanding 
    $11,500  
    $- 
  
    Capitalized interest 
     341  
     - 
  
    Debt discount 
     (3,249) 
     - 
  
    Amortization of debt discount 
     119  
     - 
  
    Total 
    $8,710  
    $- 

NOTE
11 – LEASE REVENUES

The
Company leases the LungFit® PH device to customers and