Company: XAIR
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001493152-25-005678
Chunk: 88

Company: Beyond Air, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Part II, Item 8
Chunk 88
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 pre-funded warrants have an exercise price of $0.0001 per share, and the common
warrants have an exercise price of $0.3793 per share. Members of the Board of Directors and certain executives of the Company are considered
related parties to this offering. The offering closed on December 31, 2024. The Company received net proceeds of $18.9 million after
deductions for placement agent commissions and other offering costs of $1.4 million and $0.3 million, respectively. (See Note 4)

In
addition, Beyond Air and Avenue Capital Management II, L.P., Avenue Venture Opportunities Fund, L.P. and Avenue Venture Opportunities
Fund II, L.P. (“collectively, Avenue Capital”) reached an agreement to extinguish the Avenue Capital senior secured term
loan for a one-time payment of $17.85 million. This agreement eliminates the debt and interest payments that would have been made to
Avenue Capital from October 1, 2024 through June 30, 2026 of $12.0 million. In connection with this agreement $5.0 million was paid on
September 27, 2024 in partial settlement. The Company remeasured the fair value of the derivative liability to $0 at September 30, 2024
as Avenue Capital did not exercise the conversion right related to the loan agreement prior to the extinguishment of the loan agreement
and the conversion price exceeded the fair market value of the underlying securities. The final $12.85 million was paid on October 4,
2024. Avenue Capital invested $3.35 million in the Securities Purchase Agreement II at the same terms and conditions as all other investors.

With
respect to Beyond Cancer, their most recent top line data from
the phase 1a first-in-human trial was successful in the first 6 patients with no dose limiting toxicities at the first dose. A
combination study with anti-PD1 therapy is expected to begin in the first half of calendar 2025.

     11 

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Other
Risks and Uncertainties

The
Company is subject to risks common to development and early-stage medical device companies including, but not