Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 1776

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 6
Chunk 1776
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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 Company is also dependent on third-party
suppliers and, in some cases, single-source suppliers.

The Company’s products require approval or clearance
from the FDA prior to commencement of commercial sales in the United States. There can be no assurance that the Company’s products
beyond LungFit® PH in the U.S. will receive the required approvals or clearances. Certifications, approvals or clearances
are also required in foreign jurisdictions in which the Company may license or sell its products. If the Company is denied such certifications
or approvals or clearances or such certifications, approvals or clearances are delayed, such denial or delay may have a material adverse
impact on the Company’s results of operations, financial position and liquidity. Further, there can be no assurance that the Company’s
product will be accepted in the marketplace, nor can there be any assurance that any future products can be developed or manufactured
at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed, if at all.

    F-11

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER
RISKS AND UNCERTAINTIES (continued)

Lease Revenue Recognition

The Company generates revenue from the leases of its
LungFit® PH devices to its customers under fixed fee arrangements over periods of up to three years. The fixed fee is typically broken
down into ratable monthly payments over the term of the arrangement. The Company’s customers include hospitals and medical facilities.
The Company’s LungFit® PH leases include filters, calibration gas, bagging kits, cables, adapters, and other components and
accessories required to use the LungFit® PH device (the “Consumables”). The Consumables’ quantities are varied and
may be supplied upon demand of the customers and are unlimited, or the arrangement may provide for the maximum quantities available to
the customer over the term of the arrangement. The Company’s LungFit® PH leases also include maintenance and training required
to use the LungFit® PH device, as well as device back-up services (the “Services”), which are