Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 35

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 12
Chunk 35
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8%
interest in NeuroNOS Ltd. and its affiliates (“NeuroNos”) net assets
and result of operations is reported as “non-controlling interest” on the Company’s consolidated balance sheets and
as “net loss attributable to non-controlling interest” in the Company’s consolidated statements of operations and comprehensive
loss. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S.
(“GAAP”). All intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements.

Use
of Estimates

The
preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S.
GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses for the reporting period. Actual results could significantly differ from those estimates. On an ongoing basis, the Company
evaluates its significant estimates and assumptions including expense recognition and accrual assumptions under consulting and
clinical trial agreements, stock-based compensation, impairment assessments, accounting for licensed rights to use technologies and
other long-lived assets, the valuation of warrants, the valuation of derivatives, contingency recognition and accruals and the
determination of valuation allowance requirements on deferred tax attributes.

    F-10

BEYOND AIR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Going
Concern, Liquidity and Other Uncertainties

The Company used cash in operating activities of $38.2
million for the year ended March 31, 2025, and has an accumulated deficit attributable to the stockholders of Beyond Air, Inc. of $286.3
million. The Company had cash and cash equivalents and marketable securities of $6.9 million as of March 31, 2025. In addition, $4.4 million
of cash is held on deposit by the Company’s contract manufacturer to be applied against future purchases.

The Company expects to incur net losses and have significant
cash outflows for at least the next year, including making significant investments in research and development. Management believes these
factors raise substantial doubt about the Company’s ability to meet its obligations with cash on hand and concluded that the Company
will require additional funding within one year from