Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 19

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 accounts of the Company and the accounts of all of the Company’s
subsidiaries and a variable interest entity (“VIE”) for which the Company is the primary beneficiary. As the Company has
both the power to direct activities of Beyond Cancer Ltd. and its affiliates (“Beyond Cancer”) and of NeuroNOS Ltd. and its
affiliates (“NeuroNos”) that most significantly impact these entities’ economic performance and the right to receive
benefits and losses that may potentially be significant, these financial statements are fully consolidated with those of the Company.
The non-controlling owners’ 20% interest in Beyond Cancer’s net assets and result of operations and the 11.8% interest in
NeuroNos’ net assets and result of operations is reported as “non-controlling interest” on the Company’s unaudited
condensed consolidated balance sheets and as “net loss attributable to non-controlling interest” in the Company’s unaudited
condensed consolidated statements of operations and comprehensive loss. All intercompany balances and transactions have been eliminated
in the accompanying unaudited condensed consolidated financial statements.

Use
of Estimates

The
preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period.
Actual results could significantly differ from those estimates. On an ongoing basis, the Company evaluates its significant estimates
and assumptions including expense recognition and accrual assumptions under consulting and clinical trial agreements, stock-based compensation,
impairment assessments, accounting for licensed rights to use technologies and other long-lived assets, the valuation of warrants, contingency
recognition and accruals and the determination of valuation allowance requirements on deferred tax attributes.

Going
Concern, Liquidity and Other Uncertainties

The
Company used cash in operating activities of $4.5 million for the three months ended June 30, 2025, and has an accumulated deficit attributable
to the stockholders of Beyond Air, Inc. of $294.0 million. The Company had cash, cash equivalents and marketable securities of $6.5 million
as of June 30, 2025. In addition, $4.0 million of cash is held on deposit by the Company’s contract manufacturer to be applied
against future purchases.

The
Company expects to incur net losses