Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 937

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 937
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 credits of $2.9
million expiring
during the years from 2038 to 2042. The Company has not, as yet, conducted a study of R&D credit carryforwards. This
study may result in an adjustment to the Company’s R&D credit carryforwards. We assessed our uncertain tax positions and
determined that a 25%
reserve on our federal research and development credit is appropriate and in line with industry standards. As
of March 31, 2025, the total amount of unrecognized tax benefits was $0.7
million, exclusive of interest and penalties. A full valuation allowance has been provided against the Company’s R&D credits and, if an adjustment is
required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the consolidated
balance sheets and the consolidated statements of operations and comprehensive loss if an adjustment were required. No estimated interest
or penalties related to unrecognized tax benefits have been recorded as of March 31, 2025.

Pursuant to Section 382 of the Internal Revenue Code,
changes in the Company’s ownership may limit the amount of its NOL carryforwards that could be utilized annually to offset future
taxable income, if any. This limitation would generally apply in the event of a cumulative change in ownership of the Company of more
than 50% within a three-year period. The Company has performed a study as of March 31, 2021 and determined that on or around February
15, 2017 and February 15, 2020 ownership changes for purposes of Section 382 have occurred. The annual limitations caused by these prior
ownership changes will no longer impact the utilizations of NOL’s after March 31, 2022. The Company has not updated the study since
March 31, 2021 and therefore has not determined if any other NOL limitations exist.

The components of net loss before the provision for
income taxes are as follows (in thousands):

SCHEDULE
OF PROFIT (LOSS) BEFORE TAXES

    For the Year Ended March 31, 2025  
    For the Year Ended March 31, 2024 
  
    Domestic 
    $(42,186) 
    $(54,757)
  
    Foreign 
     (6,293) 
     (9,538)
  
    Total 
    $(48,479) 
    $(64,295)

The tax effects of temporary