Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 747

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1A
Chunk 747
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 include preferences, superior voting rights and the issuance of warrants or other derivative securities,
which may have a further dilutive effect.

Furthermore, any debt or equity
financing that we may need may not be available on terms favorable to us, or at all.

Additionally, we may incur substantial
costs in pursuing future capital financing, including investment banking fees, legal fees, accounting fees, securities law compliance
fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain
securities we issue, such as convertible notes and warrants, which may adversely impact our financial condition.

If we are unable to obtain required
additional capital, we may have to curtail our growth plans or cut back on existing business, and we may not be able to continue operating
if we do not generate sufficient revenues from operations needed to stay in business.

32

Our failure to comply with the covenants or
other terms of the Loan Agreement, including as a result of events beyond our control, could result in a default under the Loan Agreement
that could materially and adversely affect the ongoing viability of our business.

On November 1, 2024, the Company
entered into a loan and security agreement (the “Loan Agreement”) for a secured loan with certain lenders including its Chief
Executive Officer and Chairman Steven Lisi and director Robert Carey. The Loan Agreement provides for a $11,500,000 loan. The loan bears
interest at a rate per annum (subject to increase during an event of default) equal to 15% of which 3% shall be payable in cash and 12%
payable in kind through June 30, 2026 and thereafter all in cash. If not earlier repaid in full, the outstanding principal amount of the
loan, together with any accrued and unpaid interest, shall be due and payable on October 4, 2034. The Company’s obligations under
the Loan Agreement are secured by substantially all of the Company’s assets.

The Loan Agreement contains affirmative
and negative covenants customary for financings of this type that, among other things, limit the ability of the Company and its subsidiaries
to incur additional debtor or pay any dividends.

The Loan Agreement also includes
events of default customary for financings of this type, in certain cases subject to customary periods to cure, following which the lenders
may accelerate all amounts outstanding under the loan. Events of default include, among other things:

    ●
    our failure to