Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1208

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 2
Chunk 1208
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 production forecasts. The Company expects an immediate benefit from these actions.

We expect to incur net losses
and have significant cash outflows for at least the next twelve months. Management believes these factors raise substantial doubt about
the Company’s ability to meet its obligations with cash on hand and concluded that the Company will require additional funding within
one year from the date these financial statements are issued.

Management is confident that the
efforts to arrange financing as described below, while not assured, will enable them to meet the Company’s 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 November 1, 2024, the Company entered into a Loan and Security Agreement
(the “Loan Agreement”) for a secured loan with certain lenders, including its Chief Executive Officer Steven Lisi and director
Robert Carey, for an aggregate principal balance of $11.5 million. The Loan Agreement was approved by each of the Company’s independent
and disinterested directors, following the receipt of a recommendation from an independent investment bank. The Loan Agreement provides
for the following terms: (i) principal amount of $11,500,000; (ii) ten-year term; (iii) interest of 15% per annum, of which 3% shall be
payable in cash and 12% payable in kind through June 30, 2026 and thereafter all in cash; (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; (v) the Company’s obligations will be secured
by substantially all of the Company’s assets and (vi) 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.

Subsequent
to March 31, 2025, the Company received commitments from certain lenders under the Loan Agreement to provide additional financing of
at least $2.0 million in aggregate principal. The additional loans are expected to be issued on terms and conditions that are materially
consistent with those of the Loan Agreement.

On September 26, 2024, the Company,