Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1334

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 3
Chunk 1334
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 warrants have an exercise price of $0.0001 per share, and the common warrants have an exercise price
of $0.3793 per share. Members of the Board of Directors and certain executives of the Company are considered related parties to this offering.
The offering closed on December 31, 2024. The Company received net proceeds of $18.9 million after deductions for placement agent commissions
and other offering costs of $1.4 million and $0.3 million, respectively. (See Note 4 to our financial statements for the fiscal year ended
March 31, 2025).

In addition, Beyond Air and Avenue
Capital Management II, L.P., Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities Fund II, L.P. (“collectively,
Avenue Capital”) reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85
million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from October 1, 2024 through
June 30, 2026 of $12.0 million. In connection with this agreement $5.0 million was paid on September 27, 2024 in partial settlement. The
Company remeasured the fair value of the derivative liability to $0 at September 30, 2024 as Avenue Capital did not exercise the conversion
right related to the loan agreement prior to the extinguishment of the loan agreement and the conversion price exceeded the fair market
value of the underlying securities. The final $12.85 million was paid on October 4, 2024. Avenue Capital invested $3.35 million in the
Securities Purchase Agreement II at the same terms and conditions as all other investors.

With respect to Beyond Cancer,
discussions with investors continue in parallel to the advancement to a phase 1b combination study of UNO with anti-PD1 therapy. Current
cash on hand is expected to be sufficient to complete the phase 1b study.

The recent $2.0 million funding
for NeuroNOS is still open as fundraising will continue for a period of time not to extend beyond the end of calendar 2025.

The accompanying consolidated
financial statements have been prepared assuming that the Company will continue operating as a going concern. This basis of accounting
contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

Our future capital needs and the
adequacy of our