Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 359

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 16
Chunk 359
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 and director Robert Carey at an exercise price of $0.3793 per common stock warrant. The warrant exercise price was
calculated at the closing share price for September 26, 2024. No warrants were exercised in this period.

On June 21, 2024, warrants to purchase up to an aggregate
of 100,000 of Company common stock were issued to Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership (“Avenue”),
and Avenue Venture Opportunities Fund II, L.P., a Delaware limited partnership (“Avenue 2” and, together with Avenue, the “Lenders”)
in return for extending the interest-only period for an additional 6 months on the Loan and Security Agreement with Avenue Capital. The
warrant exercise price was calculated at the average closing share price for the 5 trading days prior to June 21, 2024. No warrants were
exercised in this period.

Warrants to purchase up to 233,843 of Company common
stock were issued to Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership (“Avenue”), and Avenue Venture
Opportunities Fund II, L.P, a Delaware limited partnership (“Avenue 2” and, together with Avenue, the “Lenders”)
in the year ended March 31, 2024 and are liability classified. No warrants were exercised in this period. All other warrants
outstanding are equity classified.

Upon completion of the
Securities Purchase Agreement II and in accordance with their original terms, the 233,843
liability classified warrants issued to Avenue in connection with a convertible debt issuance had their re-priced exercise price of
$1.66
per share repriced to $0.3793
per share. The previously issued warrants have been, and will continue to be, liability classified and remeasured at each reporting
period until they are exercised, expire, reclassified or otherwise settled. The adjustment in the consolidated statements of
operations for the exercise price has been recorded as a revaluation of warrants fair value.

ESPP

On March 4, 2021, the stockholders approved the 2021
Employee Stock Purchase Plan (“ESPP”). The purpose of the ESPP is to encourage and to enable eligible employees of the Company,
through after-tax payroll deductions, to acquire proprietary interests in the Company through the purchase and ownership of shares of
Stock. The ESPP is intended to benefit the Company and its stockholders by (a) incentivizing