Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 87

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 87
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to meet its obligations.

The
Company’s future capital needs and the adequacy of its available funds will depend on many factors, including, but not necessarily
limited to, the success and costs of commercialization of the Company’s approved product and the actual cost and time necessary
for current and anticipated preclinical studies, clinical trials and other actions needed to obtain certification or regulatory approval
of the Company’s product candidates.

On
September 27, 2024, Beyond Air entered into a binding term sheet for a secured loan with certain lenders including its Chief Executive
Officer Steven Lisi and director Robert Carey. The Term Sheet was approved by each of the Company’s independent and disinterested
directors, following the receipt of a recommendation from an independent investment bank. The Term Sheet provides for the following expected
terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum which shall be payable in kind through
July 2026; (iv) a royalty interest of 8% of the Company’s net sales on a quarterly basis from July 2026 until the facility is repaid
in full; and (v) the Company shall issue the lenders warrants to purchase shares of the Company’s common stock at an exercise price
of $0.3793 per share, in an aggregate amount equal to the quotient of the principal divided by the exercise price. The Company finalized
this loan and security agreement on November 1, 2024.

On
September 26, 2024, the Company, entered into a securities purchase agreement (the “Securities Purchase Agreement II”) with
certain institutional and accredited investors, including certain directors and officers of the Company. Pursuant to the purchase agreement,
the Company sold to the investors in a private placement offering, (i) an aggregate of 24,999,999 shares of Common Stock”, at a
purchase price of $0.5043 per Share, (ii) pre-funded warrants to purchase up to 15,848,712 shares of common stock at a purchase price
of $0.5042 per pre-funded warrant and (iii) warrants to purchase up to 40,848,711 shares of common stock, for aggregate for gross proceeds
of $20.6 million (which includes $2.0 million from related parties). Each share and each pre-funded warrant was sold with an accompanying
common warrant to purchase one share of common stock. The