Company: XAIR
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023243
Chunk: 22

Company: Beyond Air, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 component. The total fixed fees that the Company is reasonably certain to collect are
recognized on a straight line basis over the term of the arrangement. Additionally, the Company made an accounting policy election to
present LungFit® PH revenue net of sales and other similar taxes.

At
the lease commencement date, the Company will defer initial direct costs, including commission expense and the cost is recognized over
the lease term on the same basis as lease income.

See
Note 10 to the unaudited condensed consolidated financial statements for more information regarding leasing arrangements.

The
Company also generates revenue from the sale of its LungFit® PH devices and consumables to its customers under distribution arrangements.
Contracts include one performance obligation as any individual promised good or services other than delivery of the devices and consumables
are generally either not capable of being distinct or not distinct within the context of the contracts. Purchased quantities of devices
and consumables are varied and may be supplied upon demand of the customers. Revenue is recognized at a point in time when the Company
delivers the goods to its customer. The transaction includes a fixed component based on contractual rates. Revenue recognized reflects
the consideration we expect to receive in exchange for delivering the goods.

Amounts
billed in advance of performance obligations being satisfied are recognized as deferred revenue.

The
Company records the costs of shipping devices and consumables in cost of revenue in its unaudited condensed consolidated statements of
operations and comprehensive loss.

    11

BEYOND
AIR, INC. AND SUBSIDIARIES

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Fair
Value Measurements

As
of June 30, 2025 and March 31, 2025, the Company’s financial instruments included restricted cash, marketable securities, accounts
payable, long-term debt and liability classified warrants. The carrying amounts reported in the accompanying consolidated financial statements
for cash and cash equivalents, restricted cash and marketable securities approximate their respective fair values because of the short-term
nature of these accounts. The carrying value of the Company’s long-term debt approximates fair value based on current interest
rates for similar types of borrowings and is in Level 3 of the fair value hierarchy. The liability classified warrants liability is recorded
at fair value and is Level 3 of the fair value hierarchy.

The
following