Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 28

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 operations and comprehensive loss as incurred.
Research and development expenses include salaries, benefits, stock-based compensation and costs incurred by outside laboratories, manufacturers,
clinical research organizations, consultants, and accredited facilities in connection with preclinical studies and clinical trials. Research
and development expenses are partially offset by the benefit of tax incentive payments for qualified research and development expenditures
from the Australian tax authority (“AU Tax Rebates”). The Company does not record AU Tax Rebates until payment is received
due to the uncertainty of receipt. In the nine months ended December 31, 2024 and December 31, 2023, the Company did not receive any
AU Tax Rebates.

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BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Supplier
Concentration

The
Company relies on third-party suppliers to provide materials for its devices and consumables.

In
the three months ended December 31, 2024, the Company purchased approximately 96% of its materials from two third-party vendors, with
these vendors representing 87% and 9%, respectively. In the three months ended December 31, 2023, the Company purchased approximately
92% of its materials from two third-party vendors, with these vendors representing 87 and 5%, respectively.

In
the nine months ended December 31, 2024, the Company purchased approximately 97% of its materials from two third-party vendors, with
these vendors representing 90% and 7%, respectively. In the nine months ended December 31, 2023, the Company purchased approximately
89% of its materials from two third-party vendors, with these vendors representing 80% and 9%, respectively.

Leases

Operating
lease assets are included within operating lease right-of-use assets, and the corresponding operating lease obligation on the consolidated
balance sheets as of December 31, 2024 and March 31, 2024 in accordance with ASC 842, Leases. The Company has elected not to present
short-term leases as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal
terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present
value of