Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 832

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 832
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 and certification or regulatory approval of our other medical devices, indications
as well as the commercial success of our approved product and any product candidates that receive marketing approval by the FDA. We may
be required to raise additional funds through sale of equity or debt securities or through strategic collaborations and/or licensing agreements
in order to fund operations until we are able to generate enough product or royalty revenues, if any. Financing may not be available on
acceptable terms, or at all, and our failure to raise capital when needed could have a material adverse effect on our strategic objectives,
results of operations and financial condition.

On May 25, 2021, the Company and
Circassia entered into a settlement agreement (“the Settlement Agreement”) resolving all claims by and between the parties
and mutually terminating the agreement with Circassia disclosed in Note 9 to our financial statements for the fiscal year ended March
31, 2025. Pursuant to the terms of the Settlement Agreement, the Company agreed to pay Circassia $10.5 million in three installments,
all of which has been paid. Additionally, beginning in the third fiscal quarter of 2025, Circassia will receive a quarterly royalty payment
equal to 5% of LungFit® PH net sales in the U.S. until the final $6.0 million has been paid. As of March 31, 2025, less
than $0.1 million of royalty has been paid.

On February 10, 2025, we entered
into the At-The Market Offering Sales Agreement with BTIG, Inc. (the “2025 ATM”). Under the 2025 ATM, we may sell shares of
our common stock having aggregate sales proceeds of up to $35.0 million, from time to time and at various prices. Pursuant to the “baby
shelf rules” promulgated by the SEC, if our public float is less than $75.0 million as of specified measurement periods, the number
of shares of common stock that may be offered and sold by us under a Form S-3 registration statement, including pursuant to the 2025 ATM,
in any twelve-month period is limited to an aggregate amount that does not exceed one-third of our public float. As of March 31, 2025,
due to the SEC’s “baby shelf rules,” we were permitted to sell up to $6.6 million of shares of common stock pursuant
to the 2025 ATM. We will remain subject to the