Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 176

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 medical devices, indications as well as the commercial success of our approved product and any product candidates that receive
marketing approval by the FDA. We may be required to raise additional funds through sale of equity or debt securities or through strategic
collaborations and/or licensing agreements in order to fund operations until we are able to generate enough product or royalty revenues,
if any. Financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed could have a material
adverse effect on our strategic objectives, results of operations and financial condition.

On
May 25, 2021, the Company and Circassia entered into a settlement agreement (“the Settlement Agreement”) resolving all claims
by and between the parties and mutually terminating the agreement with Circassia disclosed in Note 8 above. Pursuant to the terms of
the Settlement Agreement, the Company agreed to pay Circassia $10.5 million in three installments. The first payment of $2.5 million
was triggered upon FDA approval for the LungFit® PH (fixing the Initial Payment Due Date at July 28, 2022). Thereafter,
the Company paid $3.5 million to Circassia on the first anniversary of the Initial Payment Due Date and $4.5 million on the second anniversary
of the Initial Payment Due Date, which was in the second fiscal quarter of 2025. Additionally, beginning in the third fiscal quarter
of 2025, Circassia will receive a quarterly royalty payment equal to 5% of LungFit® PH net sales in the U.S. until the
final $6.0 million has been paid.

On
February 4, 2022, we entered into the 2022 ATM. Under the 2022 ATM, we may sell shares of our common stock having aggregate sales
proceeds of up to $50.0 million, from time to time and at various prices. Pursuant to the “baby shelf rules” promulgated
by the SEC, if our public float is less than $75.0 million as of specified measurement periods, the number of shares of common stock
that may be offered and sold by us under a Form S-3 registration statement, including pursuant to the 2022 ATM, in any twelve-month
period is limited to an aggregate amount that does not exceed one-third of our public float. As of December 31, 2024, due to the
SEC’s “baby shelf rules,”