Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 38

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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, is reported as other long-term liabilities
on the Company’s unaudited condensed consolidated balance sheets.

NOTE
10 – LEASE REVENUES

The
Company leases the LungFit® PH device to customers and receives a fixed rental fee over the term of the arrangement. Contract terms
(generally one1-to-three
years) vary by customer and may include options to terminate the contract or options to extend the contract. The LungFit® PH lease
agreements are accounted for as operating leases. The non-lease components, including consumables and device-related services are combined
with the predominant lease component under the practical expedient. The fixed rental fee is recognized over the period of the lease agreement
on a straight-line basis.

The
Company recognized $1.3 million and $0.6 million in LungFit® PH lease revenues for the three months ended June 30, 2025 and June
30, 2024, respectively, included revenues in the accompanying unaudited condensed consolidated statements of operations. The Company
received approximately $1.2 million and $0.4 million in cash associated with leases which the Company is the lessor for the three months
ended June 30, 2025 and June 30, 2024, respectively. The Company has recorded less than $0.1 million and $0.1 million in deferred revenue
associated with leased devices as of June 30, 2025 and June 30, 2024, respectively.

The
following schedule presents the minimum future lease payments under the LungFit® PH lease arrangements that were in place as of June
30, 2025 (in thousands):

 SCHEDULE
OF MATURITY OF FUTURE LEASE PAYMENTS 

    Future lease payments under the LungFit® PH lease arrangements (in thousands) 
    June 30 

    2026 
    $3,373 
  
    2027 
     3,513 
  
    2028 
     2,338 
  
    2029 
     246 
  
    Total 
    $9,470 

The
LungFit® PH devices are included in Property and Equipment (Note 3) and have a useful life of five years. Depreciation expense related
to leased LungFit® PH devices was $0.6 million and $0.5 million for the three months ended June 30, 2025 and June 30, 2024, respectively.