Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 900

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 900
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 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, while not
assured, will enable the Company 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 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.

Other
Risks and Uncertainties

The Company is subject to risks common to development
and early-stage medical device companies including, but not limited to, new technological innovations, certifications or regulatory approval,
dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty
of market acceptance of approved products and the potential need to obtain additional financing. The