Company: XAIR
Filing Date: 2025-06-20
Form Type: 10-K
Source: 0001641172-25-015750
Chunk: 592

Company: Beyond Air, Inc.
Filing Date: 2025-06-20
Form: 10-K
Item: Item 1
Chunk 592
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 manufacturers to meet our commercial demands for LungFit® PH in a timely manner, or our failure to engage
qualified additional or back-up suppliers for the commercial supply of LungFit® PH, would have a material adverse effect
on our business, results of operations and financial position.

Our reliance on third parties may require us
to share our trade secrets, which increases the possibility that a competitor will discover them or that our trade secrets will be misappropriated
or disclosed.

Because we rely on third parties
to develop and manufacture LungFit® PH and our product candidates, we must, at times, share trade secrets with them. We
seek to protect our proprietary technology in part by entering into confidentiality agreements and, if applicable, material transfer agreements,
collaborative research agreements, consulting agreements or other similar agreements with our collaborators, advisors, employees and consultants
prior to beginning research or disclosing proprietary information. These agreements typically limit the rights of the third parties to
use or disclose our confidential information, such as trade secrets. Despite the contractual provisions employed when working with third
parties, the need to share trade secrets and other confidential information increases the risk that such trade secrets become known by
our competitors, are inadvertently incorporated into the technology of others, or are disclosed or used in violation of these agreements.
Given that our proprietary position is based, in part, on our know-how and trade secrets, a competitor’s discovery of our trade
secrets or other unauthorized use or disclosure would impair our competitive position and may have a material adverse effect on our business.

59

Risks Related to Our Intellectual Property 

If we are unable to obtain and maintain effective
patent rights for LungFit® PH, our product candidates or any future product candidates, we may not be able to compete effectively
in our markets.

We rely on a combination of patents,
trade secret protection and confidentiality agreements to protect the intellectual property related to our technologies, approved product
and product candidates. Our success depends in large part on our and our licensors’ ability to obtain and maintain intellectual
property protection in the U.S. and in other countries with respect to our proprietary technology and products.

We have sought to protect our
proprietary position by filing patent applications in the U.S. and abroad related to our novel technologies and products that are important
to our business. This process is expensive and time-consuming, and we may not be able to file and prosecute all necessary or desirable
patent applications at a reasonable cost or in a timely manner. We may also fail to