Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 817

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 817
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 that our business practices, including our relationships with physicians and
other healthcare providers, some of whom are compensated in the form of stock options for consulting services provided, may not comply
with current or future statutes, regulations, agency guidance or case law involving applicable fraud and abuse or other healthcare laws
and regulations. If our operations are found to be in violation of any of the laws described above or any other governmental laws and
regulations that may apply to us, we may be subject to significant civil, criminal and administrative penalties, damages, disgorgement,
fines, imprisonment, exclusion of products from government funded healthcare programs, such as Medicare and Medicaid, additional reporting
requirements and/or oversight if a corporate integrity agreement or similar agreement is executed to resolve allegations of non-compliance
with these laws and the curtailment or restructuring of operations. In addition, violations may also result in reputational harm, diminished
profits and future earnings.

71

Employee litigation and unfavorable publicity
could negatively affect our future business. 

Our employees may, from time to
time, bring lawsuits against us regarding injury, creating a hostile work place, discrimination, wage and hour disputes, sexual harassment,
or other employment issues. In recent years, there has been an increase in the number of discrimination and harassment claims generally.
Coupled with the expansion of social media platforms and similar devices that allow individuals access to a broad audience, these claims
have had a significant negative impact on some businesses. Certain companies that have faced employment- or harassment-related lawsuits
have had to terminate management or other key personnel, and have suffered reputational harm that has negatively impacted their business.
If we were to face any employment-related claims, our business could be negatively affected.

Under applicable employment laws, such as in
Israel, we may not be able to enforce covenants not to compete and therefore may be unable to prevent our competitors from benefiting
from the expertise of some of our former employees.

We generally enter into non-competition
agreements with our employees and certain key consultants. These agreements prohibit our employees and certain key consultants, if they
cease working for us, from competing directly with us or working for our competitors or clients for a limited period of time. We may be
unable to enforce these agreements under the laws of the jurisdictions in which our employees work and it may be difficult for us to restrict
our competitors from benefitting from the expertise our former employees or consultants developed while working for us. For example, Israeli
courts have required employers seeking to enforce