Company: XAIR
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021561
Chunk: 33

Company: Beyond Air, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 September 30, 2025 and September 30, 2024, respectively.

The
Company recognized $2.7 million and $1.5 million in LungFit® PH lease revenues for the six months ended September 30, 2025 and September
30, 2024, respectively, reported as revenues in the accompanying condensed consolidated statements of operations and comprehensive loss.
The Company received approximately $2.6 million and $1.0 million in cash associated with leases which the Company is the lessor for the
six months ended September 30, 2025 and September 30, 2024, respectively. The Company has recorded $0.1 million and $0.2 million in deferred
revenue as of September 30, 2025 and September 30, 2024, respectively.

The
following schedule presents the minimum future lease payments under the LungFit® PH lease arrangements that were in place as of September
30, 2025 (in thousands):

SCHEDULE OF MATURITY OF FUTURE LEASE PAYMENTS 

    Future lease payments under the LungFit® PH lease arrangements 
    September 30 

    2026 
    $2,513 
  
    2027 
     4,128 
  
    2028 
     3,202 
  
    2029 
     1,296 
  
    Total 
    $11,139 

The
LungFit® PH devices are included in Property and Equipment (Note 3) and have the useful life of five years. Depreciation expense
related to leased LungFit® PH devices was $0.7 million and $0.6 million for the three months ended September 30, 2025 and September
30, 2024, respectively.

Depreciation
expense related to leased LungFit® PH devices was $1.3 million and $1.1 million for the six months ended September 30, 2025 and September
30, 2024, respectively.

The
depreciation expense related to customer leased devices is included in the cost of revenues in the condensed consolidated statements
of operations and comprehensive loss.

Capitalized
sales commissions

Sales
commissions related to obtaining LungFit® PH lease agreements are accounted for as initial direct costs and are capitalized and amortized
on a straight-line basis over the lease term. Total capitalized costs for the three and six months ended September 30, 2025 and September