Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 337

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 16
Chunk 337
---
    $
    -

    Issuances

    885

    1,361

    Change in fair value

    (611
    )

    (48
    )

    Balance at March 31, 2024 
    $275  
    $1,314 
  
    Change in fair value 
     (237) 
     (1,314)
  
    Balance at March 31, 2025 
    $38  
    $- 

    F-13

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

Warrant Liability

The Company classifies warrants
as equity for any contracts that (i) require physical settlement or net-share settlement or (ii) gives the Company a choice of net-cash
settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies warrants as assets or
liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs
and if that event is outside the control of the Company) or (ii) gives the counterparty a choice of net-cash settlement or settlement
in shares (physical settlement or net-share settlement). Such warrants are subject to remeasurement at each consolidated balance sheet
date and any change in fair value is recognized as a component of other expense on the consolidated statements of operations and comprehensive
loss. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of such
warrants. At that time, the portion of the warrant liability related to warrants will be reclassified to additional paid-in capital.

Derivative Liability 

The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as
assets or liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each
reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss. The classification
of derivative instruments, including whether such instruments should be recorded as assets or liabilities or as equity, is evaluated
at the end of each