Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 69

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 69
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 agreement, Beyond Air will make payments to the University over the three-year period from the date of the agreement for pre-clinical
work. Also, the Company will pay a low single-digit royalty on net sales and certain one-time payments based on clinical, regulatory
and sales milestones. The Company expects this program to progress from preclinical to a phase 1 first-in-human clinical trial by the
end of 2026.

On
March 24, 2025, Beyond Air reorganized its neurology business into a new private company called NeuroNOS. Beyond Air’s infrastructure,
for example regulatory, quality, legal, etc, will continue to support the NeruoNOS team. Beyond Air has 88.2% ownership in NeuroNOS.

The
Company’s current product candidates will be subject to premarket reviews and approvals by the FDA, certification through the conduct
of a conformity assessment by a notified body in the European Union (the “EU”), as well as comparable foreign regulatory
authorities’ reviews or approvals in other countries or regions.

On July 14, 2025, the Company effectuated
a one-for-twenty (1:20) reverse stock split (the “2025 Reverse Stock Split”). The Company’s common stock began trading
on the Nasdaq Stock Market on a split-adjusted basis on July 14, 2025. There was no change to the number of authorized shares of the
Company’s common stock or the par value per share of common stock. Any fraction of a share of common stock created as a result
of the 2025 Reverse Stock Split was rounded up to the nearest whole share.

All share and per share information in
these accompanying condensed consolidated financial statements have been retroactively adjusted to reflect the 2025 Reverse Stock Split
for all periods presented. In addition, (i) a proportionate adjustment has been made to the per share exercise price and the number of
shares issuable upon the exercise of all outstanding stock options and warrants to purchase shares of common stock, and (ii) the number
of shares reserved for issuance pursuant to the 2013 Beyond Air Equity Incentive Plan has been reduced proportionately.

    9

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE
2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER RISKS AND UNCERTAINTIES

Basis