Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 305

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 15
Chunk 305
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and associated assets including intellectual property, know-how, trade secrets and confidential information from NitricGen related to
the LungFit®. The Company acquired the licensing right to use the technology and agreed to pay NitricGen a total of $2.0
million in future payments based upon achieving certain milestones, as defined in the NitricGen Agreement, and single-digit royalties
on sales of the LungFit®. The Company paid NitricGen $0.1 million upon the execution of the NitricGen Agreement, $0.1 million
upon achieving the next milestone and $1.5 million in January 2023, six months after approval of the LungFit® by the FDA,
and issued 100,000 warrants to purchase the Company’s common stock valued at $0.3 million upon executing the NitricGen Agreement.
As of March 31, 2025 the remaining future milestone payments total $0.3 million.

Supply Agreement and Purchase Order

In August 2020, the Company entered into a supply
agreement with an initial expiration date of December 31, 2024. The agreement will renew automatically for successive three-year periods
unless and until the Company provides 12 months’ notice of intent not to renew. As of the date of this report, the Company has not
provided such notice. The Company has opened several non-cancellable purchase orders and the outstanding amount remaining under the purchase
order as of March 31, 2025 was approximately $0.4 million with this supplier. This supplier holds $4.4 million of restricted cash to partially
secure materials on the Company’s behalf recorded in other current assets and prepaid expenses.

Contingencies

From time to time, we are involved in various legal
matters arising in the normal course of business. We do not expect the outcome of such proceedings, either individually or in the aggregate,
to have a material effect on our financial position, cash flows or results of operations.

    F-31

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14 VARIABLE INTEREST ENTITIES

On November 4, 2021,
the Company announced that Beyond Air and Beyond Cancer, Ltd agreed to terms to which the Company, through its subsidiaries would be
licensing certain intellectual property and other assets related to, or necessary for the development, commercialization,
manufacture and distribution of certain cancer treatment products and/or technologies to a subsidiary of