Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 89

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 89
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 of the Company’s assets and (vi) the Company issued the lenders warrants to purchase shares of the Company’s common stock at an exercise price, adjusted for the 2025 Reverse Stock Split, of $7.59 per share.

As
the repayments under the Loan Agreement are based on a fixed percentage of future net sales, the timing and amounts of future principal
payments may vary with the Company’s performance. The outstanding debt balance has been classified in the consolidated balance
sheets based on the Company’s current estimate of the repayment timing.

Components
of Loan Agreement (in thousands)

SCHEDULE
OF LOAN AND SECURITY AGREEMENT  

    June 30, 2025  
    March 31, 2025 

    Amount outstanding 
    $11,500  
    $11,500 
  
    Paid in kind interest 
     1,066  
     696 
  
    Debt discount 
     (3,249) 
     (3,249)
  
    Amortization of debt discount 
     304  
     250 
  
    Total 
    $9,621  
    $9,197 

The $2.0 million of Additional Loans, received from a related party who is a director of the Company and an
existing lender under the Loan Agreement, is reported as other long-term liabilities
on the Company’s unaudited condensed consolidated balance sheets.

NOTE
10 – LEASE REVENUES

The
Company leases the LungFit® PH device to customers and receives a fixed rental fee over the term of the arrangement. Contract terms
(generally one1-to-three
years) vary by customer and may include options to terminate the contract or options to extend the contract. The LungFit® PH lease
agreements are accounted for as operating leases. The non-lease components, including consumables and device-related services are combined
with the predominant lease component under the practical expedient. The fixed rental fee is recognized over the period of the lease agreement
on a straight-line basis.

The
Company recognized $1.3 million and $0.6 million in LungFit® PH lease revenues for the three months ended June 30, 2025 and June
30, 2024, respectively, included revenues in the accompanying unaudited condensed consolidated statements of operations. The Company
received approximately $1.2 million and $0.4 million in cash associated with leases which the Company is the lessor for the three