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Core Insights - Beyond Air, Inc. is a commercial-stage medical device and biopharmaceutical company focused on utilizing nitric oxide to enhance patient care [3][4] - The company will participate in the ROTH 4th Annual Healthcare Opportunities Conference on October 9, 2025, where the CFO will be available for investor meetings [1][2] Company Overview - Beyond Air specializes in treatments for respiratory illnesses, neurological disorders, and solid tumors, with FDA approval for its LungFit PH system aimed at neonates with hypoxic respiratory failure [3][4] - The company is advancing other LungFit systems in clinical trials for severe lung infections, including viral pneumonia and nontuberculous mycobacteria [3][4] Product Details - The LungFit system is a cylinder-free, phasic flow generator that delivers nitric oxide at concentrations from 1 ppm to 80 ppm, designed to replace traditional high-pressure NO cylinders [5][6] - LungFit can also deliver NO at concentrations above 80 ppm for treating severe acute lung infections in hospital settings and chronic infections in home settings [6][7] Research Collaborations - Beyond Air has partnered with The Hebrew University of Jerusalem to develop treatments for autism spectrum disorder and other neurological conditions [4] - An affiliate, Beyond Cancer, Ltd., is exploring ultra-high concentrations of nitric oxide for targeting solid tumors in pre-clinical studies [4]

Core Points - Beyond Air, Inc. has entered into a definitive agreement for the immediate exercise of certain outstanding common warrants to purchase up to 1,439,126 shares at a reduced exercise price of $2.21, expected to generate approximately $3.25 million in gross proceeds [1][3] - Laidlaw & Company (UK) Ltd. is acting as the exclusive placement agent for this offering, which includes the issuance of new unregistered warrants to purchase up to 719,561 shares at a purchase price of $0.0625 per New Warrant [2][4] - The offering is expected to close on or about September 9, 2025, and the net proceeds will be used to advance clinical and pre-clinical programs, as well as for operating expenses and working capital [3][4] Company Overview - Beyond Air is a commercial stage medical device and biopharmaceutical company focused on utilizing nitric oxide to improve the lives of patients with respiratory illnesses, neurological disorders, and solid tumors [6] - The company has received FDA approval for its LungFit® PH system, aimed at treating term and near-term neonates with hypoxic respiratory failure, and is advancing other LungFit systems in clinical trials for severe lung infections [6] - Beyond Air has partnered with The Hebrew University of Jerusalem to develop treatments for Autism Spectrum Disorder and is investigating ultra-high concentrations of nitric oxide for targeting solid tumors in pre-clinical settings [6]

BOSTON, Sept. 08, 2025 (GLOBE NEWSWIRE) -- NeuroNOS, a biopharmaceutical company focused on developing treatments for neurological disorders and neuro-oncology, and a subsidiary of Beyond Air (NASDAQ: XAIR), today announced that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation (ODD) to its lead investigational therapy, BA-101, for the treatment of Glioblastoma (GBM). GBM is an aggressive primary brain tumor with limited treatment options and poor prognosis under current standa ...

Core Insights - Beyond Air, Inc. is participating in the H.C. Wainwright 27th Annual Global Investment Conference from September 8-10, 2025, in New York, NY, with CEO Steve Lisi representing the company [1] - An on-demand webcast of the company's presentation will be available starting September 5, 2025, and management will be available for one-on-one meetings with investors [2] Company Overview - Beyond Air is a commercial-stage medical device and biopharmaceutical company focused on using nitric oxide (NO) to treat patients with respiratory illnesses, neurological disorders, and solid tumors [3] - The company has received FDA approval and CE Mark for its LungFit PH system, which treats term and near-term neonates with hypoxic respiratory failure [3] - Beyond Air is advancing other LungFit systems in clinical trials for severe lung infections, including viral community-acquired pneumonia and nontuberculous mycobacteria [3] Research and Development - The company has partnered with The Hebrew University of Jerusalem to develop a pre-clinical program for treating autism spectrum disorder and other neurological disorders [4] - Beyond Cancer, Ltd., an affiliate of Beyond Air, is exploring ultra-high concentrations of NO for targeting solid tumors in pre-clinical studies [4] Product Details - The LungFit system is a cylinder-free, phasic flow generator that can deliver NO from ambient air at concentrations ranging from 1 ppm to 80 ppm, designed to replace high-pressure NO cylinders [5] - LungFit can also deliver NO at concentrations above 80 ppm for treating severe acute lung infections in hospitals and chronic infections in home settings [6] - LungFit PH is approved for commercial use in the U.S., EU, and other countries, while other LungFit systems are for investigational use only [7]

Core Insights - Beyond Air has expanded its LungFit PH distribution network to 34 countries, covering a combined population of 2.7 billion people [1][3] - The company has signed new distribution agreements in Japan, South Korea, Costa Rica, Guatemala, Panama, and El Salvador [1][2] - The LungFit PH device generates nitric oxide from ambient air, eliminating the need for traditional high-pressure cylinders, thus streamlining hospital operations and reducing environmental impact [3][5] Company Overview - Beyond Air is a commercial-stage medical device and biopharmaceutical company focused on utilizing nitric oxide to improve patient outcomes [10][11] - The LungFit PH system is FDA-approved and designed for treating hypoxic respiratory failure in neonates, with potential applications for severe lung infections [11][12] - The company is advancing other LungFit systems in clinical trials for various respiratory and neurological conditions [11][12] Product Details - LungFit PH is a cylinder-free, phasic flow generator that can deliver nitric oxide at concentrations ranging from 1 ppm to 80 ppm [5][6] - The device is compatible with ventilators and aims to replace large, high-pressure nitric oxide cylinders, providing operational benefits in hospital settings [5][6] - Beyond Air intends to offer nitric oxide treatment in home settings, enhancing accessibility for patients [6][7] Market Position - The company is well-positioned to capture opportunities in both developed and emerging healthcare markets, with hospital tender submissions already underway [3][11] - Beyond Air's distribution agreements are expected to drive significant adoption of its products in the coming years [3][11]

[Beyond Air Fiscal First Quarter 2026 Financial Results and Corporate Update](index=1&type=section&id=Beyond%20Air%20Fiscal%20First%20Quarter%202026%20Financial%20Results%20and%20Corporate%20Update) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported strong Q1 FY2026 revenue growth, secured a key purchasing agreement, and reaffirmed full-year guidance Q1 FY2026 Key Financial Metrics | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | $1.8 million | $0.7 million | +157% | - Awarded a national group purchasing agreement for therapeutic gases by Premier, Inc, providing access to a network of over **4,350 member hospitals** and health systems[1](index=1&type=chunk)[9](index=9&type=chunk) - The company reaffirmed its revenue guidance of **$12 to $16 million** for the full fiscal year 2026[1](index=1&type=chunk)[17](index=17&type=chunk) - Achieved strong sequential revenue growth of approximately **50%**, from $1.2 million in the prior quarter to $1.8 million[4](index=4&type=chunk) [Business Update](index=1&type=section&id=Business%20Update) The company is driving market adoption for LungFit PH while advancing its clinical pipeline for cancer and neurological disorders [LungFit® PH Commercial Execution](index=1&type=section&id=LungFit%C2%AE%20PH%20Commercial%20Execution) Commercial activities for LungFit PH drove significant revenue growth through domestic and international expansion - U.S. commercial activities for LungFit PH were the primary driver of the **157% revenue growth** to $1.8 million for the quarter[9](index=9&type=chunk) - International revenue is accelerating through distribution agreements that enable access to over **30 countries**[9](index=9&type=chunk) - A new agreement with Premier, Inc, effective July 15, allows members to access special pre-negotiated pricing for the LungFit PH system[9](index=9&type=chunk) [Clinical Development and Regulatory Pipeline](index=1&type=section&id=Clinical%20Development%20and%20Regulatory%20Pipeline) The company advanced its pipeline with an FDA submission for LungFit PH and progress in its cancer and NeuroNOS programs - A PMA supplement for the **second-generation LungFit PH** was submitted to the U.S. FDA in June 2025[9](index=9&type=chunk) - The Beyond Cancer program completed Part A of its Phase 1a trial and will proceed to a **Phase 1b combination therapy trial**[6](index=6&type=chunk)[9](index=9&type=chunk) - The NeuroNOS program's therapy, BA-102, was granted **Orphan Drug Designation** by the U.S. FDA for treating Phelan-McDermid Syndrome[8](index=8&type=chunk) - The NeuroNOS program is expected to progress to a phase 1 first-in-human clinical trial by the **end of 2026**[10](index=10&type=chunk) [Fiscal Q1 2026 Financial Results](index=3&type=section&id=Fiscal%20Q1%202026%20Financial%20Results) The company reported increased revenue, positive gross profit, reduced operating expenses, and a narrowed net loss for the quarter Q1 FY2026 Financial Summary | Metric | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | | :--- | :--- | :--- | | Revenues | $1.8 million | $0.7 million | | Gross Profit/(Loss) | $0.2 million | ($0.3) million | | R&D Expenses | $3.1 million | $6.0 million | | SG&A Expenses | $4.7 million | $7.2 million | | Net Loss Attributable to Common Stockholders | ($7.7) million | ($12.2) million | | Loss Per Share (Basic & Diluted) | ($1.53) | ($5.32) | - The decrease in R&D expenses by **$2.9 million** was primarily due to lower costs for salaries, clinical studies, and device development[12](index=12&type=chunk) - SG&A expenses decreased by **$2.5 million**, mainly attributed to reductions in salaries, marketing, and legal fees[13](index=13&type=chunk) Key Balance Sheet and Cash Flow Metrics (as of June 30, 2025) | Balance Sheet Item | As of June 30, 2025 | | :--- | :--- | | Cash, cash equivalents, and marketable securities | $6.5 million | | Total long-term debt outstanding | $11.6 million | | Net cash burn in fiscal Q1 2026 | $4.7 million | [Fiscal Year 2026 Guidance](index=3&type=section&id=Fiscal%20Year%202026%20Guidance) The company reaffirmed its full-year revenue guidance for the fiscal year ending March 31, 2026 - The company reaffirmed its revenue guidance of **$12 to $16 million** for the fiscal year ending March 31, 2026[17](index=17&type=chunk) [Company and Program Overview](index=4&type=section&id=Company%20and%20Program%20Overview) The company focuses on nitric oxide therapies, with an approved product for neonates and a pipeline for other indications [About Beyond Air and LungFit®](index=4&type=section&id=About%20Beyond%20Air%20and%20LungFit%C2%AE) LungFit® is a cylinder-free nitric oxide system approved for treating PPHN with potential for broader applications - LungFit® PH is **FDA approved and CE Marked** for treating term and near-term neonates with hypoxic respiratory failure[19](index=19&type=chunk) - The LungFit system generates NO from ambient air on demand, potentially replacing high-pressure NO cylinders and **improving safety**[21](index=21&type=chunk) [About Development Programs (Beyond Cancer, NeuroNOS)](index=4&type=section&id=About%20Development%20Programs%20(Beyond%20Cancer%2C%20NeuroNOS)) The company is developing novel nitric oxide-based therapies for solid tumors and neurodevelopmental disorders - Beyond Cancer, Ltd is investigating **ultra-high concentrations of NO (UNO)** to treat primary tumors and prevent metastatic disease[25](index=25&type=chunk) - NeuroNOS is developing therapies based on small molecules to regulate NO levels in the brain, targeting conditions like **Autism Spectrum Disorder (ASD)**[26](index=26&type=chunk) [Appendix: Financial Statements](index=6&type=section&id=Appendix%3A%20Financial%20Statements) This section presents the unaudited consolidated balance sheets and statements of operations for the period [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet shows total assets of $28.1 million and total stockholders' equity of $10.4 million Balance Sheet Summary | (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $14,989 | $16,018 | | **TOTAL ASSETS** | $28,114 | $30,062 | | **Total Current Liabilities** | $4,626 | $5,000 | | **Total Liabilities** | $17,706 | $15,721 | | **Total Stockholders' Equity** | $10,408 | $14,341 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $7.7 million on $1.8 million in revenue for the three months ended June 30, 2025 Statement of Operations Summary | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $1,760 | $683 | | Gross profit/(loss) | $156 | $(332) | | Loss from operations | $(7,617) | $(13,580) | | Net loss attributable to Beyond Air, Inc | $(7,691) | $(12,201) | | Net basic and diluted loss per share | $(1.53) | $(5.32) |

Company Performance - Beyond Air, Inc. reported a quarterly loss of $1.53 per share, slightly worse than the Zacks Consensus Estimate of a loss of $1.50, but an improvement from a loss of $5.40 per share a year ago, indicating a significant year-over-year recovery [1] - The company posted revenues of $1.76 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.68%, but showing growth from $0.68 million in the same quarter last year [2] - Over the last four quarters, Beyond Air has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Beyond Air shares have declined approximately 55.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.30 on revenues of $2.46 million, and for the current fiscal year, it is -$5.00 on revenues of $13.1 million [7] - The estimate revisions trend for Beyond Air was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - Beyond Air operates within the Medical - Biomedical and Genetics industry, which is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Beyond Air's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Revenue for the fiscal quarter ended 06/30/2025 increased by 157% to $1,800,000 compared to $700,000 for the same period last year [5][15] - Gross profit increased to $200,000 from a loss of $300,000 for the same period last year, reflecting the increase in revenues [15] - Net loss attributed to common stockholders was $7,700,000 or a loss of $1.53 per share, compared to a net loss of $12,200,000 or a loss of $5.32 per share for the same period last year [19] Business Line Data and Key Metrics Changes - The company reported a 50% sequential increase in revenue over the quarter ended 03/31/2025 [5] - More than 55% of contracts are multi-year contracts, indicating a stable revenue stream [8] - The first quarter of international revenues was recorded, expanding the company's reach to over 30 countries and covering more than 2 billion lives [8][9] Market Data and Key Metrics Changes - The company has been added to the Premier Network, providing access to nearly 3,000 hospitals [10] - The company anticipates growth in international markets, with expectations of significant revenue contributions in fiscal year 2027 [10][66] Company Strategy and Development Direction - The company is focused on overcoming barriers to entry in the nitric oxide market with the LungFit PH system and plans to introduce LungFit PH2 in calendar year 2026, pending regulatory clearance [6][14] - The company is assessing the best path forward for its Beyond Cancer program and expects to communicate more details once a clinical trial site is secured [12] - The company aims to maintain a strong focus on cost reduction in SG&A, R&D, and supply chain management [16] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed revenue guidance of $12,000,000 to $16,000,000 for fiscal year 2026, indicating confidence in achieving this target [7] - Management noted that while the Premier agreement will not have a major impact this fiscal year, it is expected to significantly contribute in the following fiscal year [26] - The company is optimistic about the growth potential in both domestic and international markets, with ongoing training and support for distribution partners [66] Other Important Information - The company reported a net cash burn of $4,700,000, which is more than 60% lower than the first quarter of the previous fiscal year [20] - As of 06/30/2025, the company had cash, cash equivalents, and marketable securities of $6,500,000, which is expected to support operations into calendar year 2026 [21] Q&A Session Summary Question: How should we think about the various growth drivers coming together this year? - Management indicated that while they are confident in their guidance, they need to see more growth opportunities materialize throughout the fiscal year [25][28] Question: Are there certain countries we should be listening for in terms of international growth? - Management noted that initial sales to distribution partners are for demonstration and training purposes, with hospital wins expected towards the end of the fiscal year [30][32] Question: How long does it take to go from initial contact with a customer to closing a deal? - Management stated that it typically takes anywhere from four to twelve months to close deals, depending on the hospital system [36][38] Question: How should expenses be modeled in relation to revenue growth? - Management explained that expenses will increase in proportion to revenue growth, with some fluctuations expected in the upcoming quarters [41][42] Question: How is the Premier agreement facilitating engagement efforts? - Management confirmed that being part of the Premier network removes significant barriers, allowing for more effective discussions with hospitals [46][48] Question: Can you provide insights on sales so far this quarter? - Management refrained from commenting on quarterly estimates but reiterated confidence in their fiscal year guidance [52][53] Question: What is the current expectation for PMA filings? - Management emphasized that their focus is on the second-generation machine, which is deemed more important than the cardiac indication at this time [56][58]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Beyond Air, Inc. and its subsidiaries, including the balance sheets, statements of operations and comprehensive loss, statements of changes in stockholders' equity, statements of cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :----------------------------------- | :------------ | :------------- | | Cash and cash equivalents | $4,976 | $4,665 | | Marketable securities | $1,487 | $2,252 | | Total current assets | $14,989 | $16,018 | | Total assets | $28,114 | $30,062 | | Total current liabilities | $4,626 | $5,000 | | Long-term debt, net | $9,621 | $9,197 | | Total liabilities | $17,706 | $15,721 | | Total stockholders' equity | $10,408 | $14,341 | - Total assets decreased by **$1,948 thousand** from March 31, 2025, to June 30, 2025, while total liabilities increased by **$1,985 thousand**, leading to a decrease in total stockholders' equity[9](index=9&type=chunk) - A one-for-twenty reverse stock split was effectuated in July 2025, with all share and per share information retroactively adjusted to reflect this change[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section details the company's financial performance over specific periods, including revenues, expenses, and net loss Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Revenues | $1,760 | $683 | | Cost of revenues | $(1,604) | $(1,016) | | Gross profit/(loss) | $156 | $(332) | | Research and development | $(3,086) | $(6,009) | | Selling, general and administrative | $(4,687) | $(7,239) | | Loss from operations | $(7,617) | $(13,580) | | Net loss | $(8,078) | $(13,055) | | Net loss attributable to Beyond Air, Inc. | $(7,691) | $(12,201) | | Net basic and diluted loss per share | $(1.53) | $(5.32) | | Weighted average number of shares outstanding | 5,014,923 | 2,295,042 | - Revenues increased by **157.7%** year-over-year, leading to a shift from a gross loss of **$332 thousand** in 2024 to a gross profit of **$156 thousand** in 2025[11](index=11&type=chunk) - Operating expenses decreased significantly by **$5,474 thousand**, contributing to a reduced loss from operations and a lower net loss attributable to Beyond Air, Inc. of **$7,691 thousand** compared to **$12,201 thousand** in the prior year[11](index=11&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section outlines the changes in the company's equity due to net loss, stock issuances, and stock-based compensation over time Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | Metric | Balance as of April 1, 2025 | Issuance of common stock – At The Market equity offering | Stock-based compensation | Net loss | Balance as of June 30, 2025 | | :-------------------------------- | :-------------------------- | :------------------------------------------------------- | :----------------------- | :--------- | :-------------------------- | | Total Stockholders' Equity | $14,341 | $2,441 | $1,577 | $(8,078) | $10,408 | - Total stockholders' equity decreased from **$14,341 thousand** as of April 1, 2025, to **$10,408 thousand** as of June 30, 2025, primarily due to the net loss of **$8,078 thousand**, partially offset by **$2,441 thousand** from equity offerings and **$1,577 thousand** from stock-based compensation[14](index=14&type=chunk) Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | Metric | Balance as of April 1, 2024 | Issuance of common stock warrants | Stock-based compensation | Net loss | Balance as of June 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------------- | :----------------------- | :--------- | :-------------------------- | | Total Stockholders' Equity | $27,186 | $86 | $3,379 | $(13,055) | $17,699 | - For the three months ended June 30, 2024, total stockholders' equity decreased from **$27,186 thousand** to **$17,699 thousand**, mainly due to a net loss of **$13,055 thousand**, partially offset by stock-based compensation of **$3,379 thousand**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities, reflecting the company's liquidity Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(4,526) | $(10,180) | | Net cash provided by investing activities | $576 | $3,114 | | Net cash provided by (used in) financing activities | $4,066 | $(264) | | Effect of exchange rate changes | $127 | $111 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $243 | $(7,218) | - Net cash used in operating activities significantly decreased from **$10,180 thousand** in 2024 to **$4,526 thousand** in 2025[18](index=18&type=chunk) - Financing activities provided **$4,066 thousand** in 2025, primarily from common stock issuance and advanced financing, a substantial improvement from **$264 thousand** cash used in 2024[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, financial instrument valuations, commitments, contingencies, and segment information - The notes provide detailed explanations of the company's accounting policies, financial instrument valuations, commitments, contingencies, and segment information, which are integral to understanding the condensed consolidated financial statements[19](index=19&type=chunk) [NOTE 1 ORGANIZATION AND BUSINESS](index=10&type=section&id=NOTE%201%20ORGANIZATION%20AND%20BUSINESS) This note describes the company's core business as a medical device and biopharmaceutical company, its key product platforms, and recent corporate actions - Beyond Air, Inc. is a commercial-stage medical device and biopharmaceutical company developing the LungFit platform for nitric oxide (NO) generation and delivery[20](index=20&type=chunk) - The LungFitPH device received U.S. FDA premarket approval in June 2022 and European CE mark approval in November 2024 for treating hypoxic respiratory failure in neonates[20](index=20&type=chunk)[21](index=21&type=chunk) - The company has two additional programs: Beyond Cancer (**80% owned**) for ultra-high concentration NO (UNO) in solid tumors (Phase 1 clinical trial) and NeuroNOS (**88.2% owned**) for nNOS inhibitors to treat neurological conditions like autism spectrum disorder (ASD) (preclinical, Phase 1 expected by end of 2026)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - A one-for-twenty reverse stock split was effectuated on July 14, 2025, retroactively adjusting all share and per share information in the financial statements[28](index=28&type=chunk)[29](index=29&type=chunk) [NOTE 2 SIGNIFICANT ACCOUNTING POLICIES AND OTHER RISKS AND UNCERTAINTIES](index=12&type=section&id=NOTE%202%20SIGNIFICANT%20ACCOUNTING%20POLICIES%20AND%20OTHER%20RISKS%20AND%20UNCERTAINTIES) This note outlines the critical accounting principles and estimates used in preparing the financial statements, along with other risks and uncertainties - The company's financial statements are prepared in accordance with U.S. GAAP for interim financial information and include all necessary adjustments[30](index=30&type=chunk) - Beyond Air consolidates its majority-owned affiliates, Beyond Cancer and NeuroNOS, due to its power to direct their activities and right to receive benefits and losses[31](index=31&type=chunk) - Management believes there is substantial doubt about the company's ability to meet its obligations with cash on hand and will require additional funding within one year[34](index=34&type=chunk) - Revenue from LungFitPH device leases is recognized on a straight-line basis over the lease term, combining lease and non-lease components under a practical expedient[43](index=43&type=chunk) - The company relies on third-party suppliers, with two vendors accounting for approximately **89%** of materials purchased for the three months ended June 30, 2025[59](index=59&type=chunk) [NOTE 3 PROPERTY AND EQUIPMENT](index=20&type=section&id=NOTE%203%20PROPERTY%20AND%20EQUIPMENT) This note details the composition of the company's property and equipment, including clinical devices and other assets, and related depreciation expenses Property and Equipment (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :----------------------------- | :------------ | :------------- | | Clinical and medical equipment | $1,090 | $1,048 | | Equipment deployable as part of a service offering | $13,383 | $13,511 | | Computer equipment | $951 | $927 | | Furniture and fixtures | $499 | $506 | | Leasehold improvements | $533 | $521 | | **Total Property and Equipment, net** | **$10,188** | **$11,013** | - Depreciation and amortization expense for the three months ended June 30, 2025, was **$0.8 million**, an increase from **$0.7 million** in the prior year[61](index=61&type=chunk) [NOTE 4 STOCKHOLDERS' EQUITY](index=20&type=section&id=NOTE%204%20STOCKHOLDERS%27%20EQUITY) This note provides information on the company's equity activities, including ATM offerings, stock-based compensation, and the impact of a reverse stock split - The company has an At-The-Market (ATM) Equity Offering Sales Agreement for up to **$35.0 million**, but is currently limited to selling up to **$5.8 million** of common stock due to SEC's 'baby shelf rules'[62](index=62&type=chunk)[169](index=169&type=chunk) - During the three months ended June 30, 2025, the company received net proceeds of **$2.4 million** from the sale of **564,699 shares** of common stock through the 2025 ATM[63](index=63&type=chunk) Stock-based Compensation Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | | Research and development | $300 | $629 | | General and administrative | $1,277 | $2,750 | | **Total stock-based compensation expense** | **$1,577** | **$3,379** | - As of June 30, 2025, the company had approximately **$4.1 million** in unrecognized stock-based compensation expense for stock options and **$0.7 million** for restricted stock unit awards, expected to be expensed over weighted average remaining service periods of **1.3 to 1.7 years**[66](index=66&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) [NOTE 5 OTHER CURRENT ASSETS AND PREPAID EXPENSES](index=24&type=section&id=NOTE%205%20OTHER%20CURRENT%20ASSETS%20AND%20PREPAID%20EXPENSES) This note itemizes the components of other current assets and prepaid expenses, highlighting significant deposits for manufacturing materials Other Current Assets and Prepaid Expenses (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Research and development | $68 | $108 | | Prepaid insurance | $572 | $817 | | Deposits to secure manufacturing materials | $3,977 | $4,377 | | Other | $156 | $203 | | **Total** | **$5,126** | **$5,743** | - Deposits to secure manufacturing materials represent the largest component of other current assets and prepaid expenses, totaling **$3,977 thousand** as of June 30, 2025[79](index=79&type=chunk) [NOTE 6 ACCRUED EXPENSES](index=24&type=section&id=NOTE%206%20ACCRUED%20EXPENSES) This note details the company's accrued liabilities, including research and development, professional fees, and deferred revenue Accrued Expenses (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :----------------------------- | :------------ | :------------- | | Research and development | $539 | $360 | | Professional fees | $280 | $440 | | Employee salaries and benefits | $743 | $924 | | Deferred revenue | $921 | - | | Goods received not invoiced | $77 | $98 | | Other | $177 | $223 | | **Total short-term accrued expenses** | **$2,737** | **$2,045** | - Total short-term accrued expenses increased by **$692 thousand** from March 31, 2025, to June 30, 2025, primarily due to the recognition of **$921 thousand** in deferred revenue[80](index=80&type=chunk) [NOTE 7 BASIC AND DILUTED NET INCOME (LOSS) PER SHARE OF COMMON STOCK](index=24&type=section&id=NOTE%207%20BASIC%20AND%20DILUTED%20NET%20INCOME%20%28LOSS%29%20PER%20SHARE%20OF%20COMMON%20STOCK) This note explains the calculation of earnings per share and identifies potentially dilutive securities excluded due to their anti-dilutive effect Potentially Dilutive Securities Not Included in Diluted EPS Calculation | Security Type | June 30, 2025 | June 30, 2024 | | :----------------------------- | :------------ | :------------ | | Common stock warrants | 3,254,966 | 511,251 | | Common stock options | 728,262 | 558,343 | | Restricted shares | 18,265 | 30,645 | | Loan and Security – conversion feature | - | 69,509 | | **Total** | **4,001,493** | **1,169,748** | - Potentially dilutive securities, including common stock warrants, options, and restricted shares, were not included in the calculation of diluted net income (loss) per share as their effect would have been anti-dilutive for the periods presented[81](index=81&type=chunk)[82](index=82&type=chunk) [NOTE 8 COMMITMENTS AND CONTINGENCIES](index=25&type=section&id=NOTE%208%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's contractual obligations, license agreements, supply commitments, and ongoing legal matters - The company has license agreements with Pulmonox Technologies Corporation and NitricGen, Inc., with potential future milestone payments of up to **$87 million** for Pulmonox and **$0.3 million** remaining for NitricGen[83](index=83&type=chunk)[84](index=84&type=chunk) - A supply agreement with a third-party vendor has an outstanding purchase order of approximately **$0.4 million**, with **$4.0 million** of restricted cash held by the supplier to secure materials[85](index=85&type=chunk) - The company is involved in various legal matters in the normal course of business, but does not expect their outcome to have a material effect on its financial position, cash flows, or results of operations[86](index=86&type=chunk) [NOTE 9 LOANS](index=26&type=section&id=NOTE%209%20LOANS) This note details the company's secured loan agreements, including terms, interest rates, and related party financing - On November 1, 2024, the company entered into a **$11.5 million** secured loan agreement with a **ten-year term**, **15%** annual interest (**3%** cash, **12%** payable in kind until June 30, 2026), and an **8%** royalty interest on net sales from July 2026[88](index=88&type=chunk)[167](index=167&type=chunk) - An additional **$2.0 million** in advanced financing was received on June 2, 2025, from a related party director, expected to be on terms materially consistent with the existing Loan Agreement[90](index=90&type=chunk)[168](index=168&type=chunk) Components of Loan Agreement (in thousands) | Component | 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** | [NOTE 10 – LEASE REVENUES](index=26&type=section&id=NOTE%2010%20%E2%80%93%20LEASE%20REVENUES) This note provides information on revenues generated from LungFit PH device leases, including recognized revenue and future minimum lease payments LungFit® PH Lease Revenues (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | | Lease revenues recognized | $1,300 | $600 | | Cash received from leases | $1,200 | $400 | - Future minimum lease payments under LungFit® PH lease arrangements total **$9,470 thousand** as of June 30, 2025, with **$3,373 thousand** due in 2026[93](index=93&type=chunk) - Depreciation expense related to leased LungFit® PH devices was **$0.6 million** for the three months ended June 30, 2025, up from **$0.5 million** in the prior year, and is included in the cost of revenue[93](index=93&type=chunk)[94](index=94&type=chunk) [NOTE 11 SEGMENTS](index=28&type=section&id=NOTE%2011%20SEGMENTS) This note presents financial information by operating segment, detailing assets, revenues, and losses attributable to Beyond Air, Beyond Cancer, and NeuroNOS Segment Financial Information (Three Months Ended June 30, 2025, in thousands) | Metric | Beyond Air | Beyond Cancer | NeuroNos | Total | | :----------------------------- | :----------- | :------------ | :--------- | :------ | | Total assets | $24,297 | $2,175 | $1,642 | $28,114 | | Revenues | $1,760 | $0 | $0 | $1,760 | | Loss from operations | $(5,406) | $(1,481) | $(730) | $(7,617) | | Net loss before income taxes | $(5,844) | $(1,506) | $(728) | $(8,078) | | Cash used in operations | $(3,755) | $(439) | $(332) | $(4,526) | - The Beyond Air segment generated all current revenues (**$1,760 thousand**) and accounted for the largest portion of total assets and operating loss[96](index=96&type=chunk) - Beyond Cancer and NeuroNos segments, while not generating revenue, contributed to the overall net loss and cash used in operations, reflecting their development stages[96](index=96&type=chunk) [NOTE 12 – SUBSEQUENT EVENTS](index=29&type=section&id=NOTE%2012%20%E2%80%93%20SUBSEQUENT%20EVENTS) This note discloses significant events that occurred after the balance sheet date but before the financial statements were issued - No subsequent events occurred other than the one-for-twenty reverse stock split referred to in Note 1[97](index=97&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three months ended June 30, 2025, compared to the same period in 2024 [Note Regarding Forward-Looking Statements](index=30&type=section&id=Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers about forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially - This report contains forward-looking statements that are subject to known and unknown risks, uncertainties, and other important factors that may cause actual results to differ materially from expectations[98](index=98&type=chunk)[99](index=99&type=chunk) - Key factors influencing future results include the ability to successfully commercialize LungFit PH, predict product demand, develop new products, complete clinical trials, obtain regulatory approvals, maintain collaborations, protect intellectual property, and secure additional funding[103](index=103&type=chunk) [Introduction](index=31&type=section&id=Introduction) This section introduces Beyond Air as a commercial-stage medical device and biopharmaceutical company, detailing its LungFit platform and product pipeline - Beyond Air is a commercial-stage medical device and biopharmaceutical company developing the LungFit platform for generating nitric oxide (NO) from ambient air[104](index=104&type=chunk) - The company's first device, LungFit PH, received FDA approval in June 2022 and European CE mark approval in November 2024 for treating hypoxic respiratory failure in neonates[104](index=104&type=chunk)[105](index=105&type=chunk) - Beyond Air has two additional programs: Beyond Cancer (**80% owned**) for ultra-high concentration NO (UNO) in solid tumors (Phase 1 clinical trial) and NeuroNOS (**88.2% owned**) for nNOS inhibitors to treat neurological conditions like ASD (preclinical)[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - The LungFit PH system offers competitive advantages by generating NO on-demand from ambient air, eliminating the need for high-pressure cylinders and cumbersome purging procedures[110](index=110&type=chunk)[112](index=112&type=chunk) [LungFitPH for the treatment of Persistent Pulmonary Hypertension of the Newborn (PPHN)](index=32&type=section&id=LungFitPH%20for%20the%20treatment%20of%20Persistent%20Pulmonary%20Hypertension%20of%20the%20Newborn%20%28PPHN%29) This section describes the FDA and CE Mark approved LungFit PH device for PPHN, its market potential, and commercialization efforts - LungFit PH is FDA-approved (June 2022) and CE Mark approved (November 2024) for PPHN, with a PMA supplement submitted to the FDA in November 2023 for label expansion to include certain cardiac surgeries[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The company estimates the U.S. sales potential for LungFit PH to be approximately **$350 million** and worldwide sales potential to be **$700 million** or greater[117](index=117&type=chunk) - Beyond Air is in the final phase of its U.S. commercial launch, aiming to become the market leader, and has secured regulatory approvals and new distribution agreements in several international markets since receiving CE Mark[117](index=117&type=chunk) [LungFitPRO for the treatment of viral lung infections in hospitalized patients](index=33&type=section&id=LungFitPRO%20for%20the%20treatment%20of%20viral%20lung%20infections%20in%20hospitalized%20patients) This section outlines the development of LungFitPRO for viral lung infections, including clinical trial results and market potential - LungFitPRO is being developed for viral community-acquired pneumonia (VCAP), including COVID-19, with an estimated U.S. market potential greater than **$1.5 billion** and worldwide potential greater than **$3 billion**[118](index=118&type=chunk) - A pilot clinical trial showed that intermittent inhalations of **150 ppm NO** were well-tolerated, shortened hospital length of stay, and significantly reduced the duration of oxygen support for VCAP patients[119](index=119&type=chunk)[120](index=120&type=chunk) - Further data analysis indicated a larger decline in c-reactive protein (CRP) and compelling evidence that high concentration NO delivery can be a powerful tool against pneumonia[121](index=121&type=chunk) [Bronchiolitis (BRO)](index=34&type=section&id=Bronchiolitis%20%28BRO%29) This section discusses the development of a treatment for bronchiolitis, including pilot study results and market potential for this common pediatric condition - Bronchiolitis is the leading cause of hospital admission in children under **1 year**, with an estimated U.S. market potential greater than **$500 million** and worldwide potential greater than **$1.2 billion**[123](index=123&type=chunk) - Three successful pilot studies showed that intermittent **150-160 ppm NO** was generally safe, well-tolerated, and effective in shortening hospital length of stay and accelerating time to stable oxygen saturation[124](index=124&type=chunk) - Long-term safety data from follow-up studies indicated a favorable re-hospitalization rate for bronchiolitis-related reasons in the inhaled NO group[126](index=126&type=chunk) [LungFitGO for the treatment of Nontuberculous mycobacteria (NTM)](index=35&type=section&id=LungFitGO%20for%20the%20treatment%20of%20Nontuberculous%20mycobacteria%20%28NTM%29) This section details the LungFitGO program for NTM lung infections, including clinical trial findings and future development plans - NTM lung infection is a rare and serious pulmonary disease with no specific treatments for M. Abscessus, representing a U.S. sales potential greater than **$1 billion** and worldwide potential greater than **$2.5 billion**[128](index=128&type=chunk)[129](index=129&type=chunk) - A **12-week** clinical trial in Australia demonstrated that high-dose NO treatment (up to **250 ppm**) was well-tolerated in both home and hospital settings, improved quality of life, and showed trends in microbial load reduction[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - One patient achieved culture conversion, and the company anticipates commencing a pivotal clinical trial in calendar year 2026, pending funding and discussions with the FDA[132](index=132&type=chunk) [Ultra-High Concentration NO (UNO) in solid tumors through majority-owned affiliate Beyond Cancer, Ltd.](index=37&type=section&id=Ultra-High%20Concentration%20NO%20%28UNO%29%20in%20solid%20tumors%20through%20majority-owned%20affiliate%20Beyond%20Cancer%2C%20Ltd.) This section describes the Beyond Cancer affiliate's progress in developing UNO for solid tumors, including preclinical data and Phase 1 clinical trial results - Beyond Cancer, a majority-owned affiliate (**80% equity ownership**), raised **$30.0 million** in a private placement to accelerate preclinical work and a Phase 1 human clinical trial for UNO in solid tumors[134](index=134&type=chunk) - Preclinical data showed UNO (**20,000-200,000 ppm**) elicited an immune response, increased immune cell recruitment, and demonstrated dose-dependent cytotoxic effects on cancer cell lines[136](index=136&type=chunk) - A Phase 1 clinical trial is underway, with initial results showing no dose-limiting toxicities at **25,000 ppm NO** and favorable immune biomarker changes at **50,000 ppm**, including a **54% decrease** in MDSCs[137](index=137&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - A Phase 1b trial protocol for UNO + anti-PD-1 combination therapy in relapsed or refractory malignancies was approved by the Israeli Ministry of Health[143](index=143&type=chunk) [Selective neuronal nitric oxide synthase (nNOS) inhibitor for the treatment of neurological conditions in collaboration with Hebrew University of Jerusalem](index=38&type=section&id=Selective%20neuronal%20nitric%20oxide%20synthase%20%28nNOS%29%20inhibitor%20for%20the%20treatment%20of%20neurological%20conditions%20in%20collaboration%20with%20Hebrew%20University%20of%20Jerusalem) This section outlines the NeuroNOS affiliate's program for nNOS inhibitors targeting neurological conditions like ASD, including funding and development timelines - NeuroNOS, a majority-owned affiliate (**88.2% equity ownership**), raised **$2.0 million** in a private placement to fund preclinical work for nNOS inhibitors targeting neurological conditions like autism spectrum disorder (ASD)[144](index=144&type=chunk)[145](index=145&type=chunk) - The company expects this program to progress from preclinical to a Phase 1 first-in-human clinical trial by the end of 2026[146](index=146&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=Critical%20Accounting%20Estimates) This section confirms that there were no material changes to the company's critical accounting estimates during the reporting period - There were no material changes to the critical accounting estimates for the three months ended June 30, 2025, as previously disclosed in the company's 2025 Annual Report on Form 10-K[147](index=147&type=chunk) [Results of Operations and Comprehensive Loss](index=39&type=section&id=Results%20of%20Operations%20and%20Comprehensive%20Loss) This section analyzes the company's financial performance, comparing revenues, expenses, and net loss for the current and prior periods Key Financial Performance (in thousands, except per share data) | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------------------------------------------ | :------------ | :------------ | :------- | | Revenues | $1,760 | $683 | +$1,077 | | Cost of revenues | $(1,604) | $(1,016) | $(588) | | Gross profit/(loss) | $156 | $(332) | +$488 | | Research and development | $(3,086) | $(6,009) | +$2,923 | | Selling, general and administrative | $(4,687) | $(7,239) | +$2,552 | | Operating expenses | $(7,773) | $(13,247) | +$5,474 | | Operating loss | $(7,617) | $(13,580) | +$5,963 | | Net loss | $(8,078) | $(13,055) | +$4,977 | | Net loss attributable to Beyond Air, Inc. Stockholders | $(7,691) | $(12,201) | +$4,510 | | Net basic and diluted loss per share | $(1.53) | $(5.32) | +$3.79 | - The company significantly reduced its net loss by **$4,977 thousand** and operating loss by **$5,963 thousand** year-over-year, driven by increased revenues and substantial reductions in operating expenses[149](index=149&type=chunk) [Comparison of Three Months Ended June 30, 2025 with the Three Months Ended June 30, 2024](index=40&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030%2C%202025%20with%20the%20Three%20Months%20Ended%20June%2030%2C%202024) This section provides a detailed comparative analysis of the company's financial results for the three months ended June 30, 2025, versus the same period in 2024 - The company experienced a substantial improvement in financial performance, marked by increased revenues, a shift from gross loss to gross profit, and significant reductions in operating expenses and net loss compared to the prior year[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[156](index=156&type=chunk) [Revenues and Cost of Revenues](index=40&type=section&id=Revenues%20and%20Cost%20of%20Revenues) This section analyzes the changes in the company's revenues and associated costs, highlighting the shift from gross loss to gross profit Revenues and Cost of Revenues (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :---------------- | :------------ | :------------ | :------- | | Revenues | $1,760 | $683 | +$1,077 | | Cost of revenues | $(1,604) | $(1,016) | $(588) | | Gross profit/(loss) | $156 | $(332) | +$488 | - Revenues increased by **$1.1 million (157.7%)** year-over-year, and the company achieved a gross profit of **$0.2 million**, a significant improvement from a gross loss of **$0.3 million** in the prior year[150](index=150&type=chunk) - The increase in gross profit is primarily associated with sales growth, partially offset by one-time costs required to upgrade existing devices and provisions for excess inventory[151](index=151&type=chunk) [Research and Development Expenses](index=40&type=section&id=Research%20and%20Development%20Expenses) This section details the year-over-year changes in research and development expenditures, identifying key areas of cost reduction Research and Development Expenses (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :----------------------------- | :------------ | :------------ | :------- | | Research and development expenses | $3,086 | $6,009 | $(2,923) | - R&D expenses decreased by **$2.9 million (48.6%)** year-over-year, primarily due to reduced spending in salaries (**$1.3 million**), stock-based compensation (**$0.3 million**), preclinical studies (**$0.3 million**), clinical studies (**$0.1 million**), professional fees (**$0.2 million**), and Gen II device development costs (**$0.2 million**)[152](index=152&type=chunk) [Selling, General and Administrative Expenses](index=40&type=section&id=Selling%20General%20and%20Administrative%20Expenses) This section examines the changes in selling, general, and administrative expenses, attributing reductions to lower salaries, stock-based compensation, and marketing costs Selling, General and Administrative Expenses (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------------------------------ | :------------ | :------------ | :------- | | Selling, general and administrative expenses | $4,687 | $7,239 | $(2,552) | - SG&A expenses decreased by **$2.5 million (35.2%)** year-over-year, mainly attributed to lower salaries (**$0.8 million**), stock-based compensation (**$1.5 million**), marketing and advertising costs (**$0.1 million**), and legal fees (**$0.1 million**)[153](index=153&type=chunk) [Other Income/Expense](index=40&type=section&id=Other%20Income%2FExpense) This section explains the changes in other income and expense, primarily due to the extinguishment of derivative liability and shifts in interest income and expense Other Income/(Expense) (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------------------------------------ | :------------ | :------------ | :------- | | Total other income/(expense) | $(461) | $525 | $(986) | - The shift from other income to other expense, a **$1.0 million** increase in expense, was primarily due to a prior-period gain associated with the change in fair value of derivative liability (**$1.0 million**) which was extinguished[154](index=154&type=chunk) - This was partially offset by a decrease in interest expense of **$0.5 million** and a **$0.4 million** decrease in dividend and interest income[154](index=154&type=chunk) [Net Loss Attributable to Non-controlling Interests](index=40&type=section&id=Net%20Loss%20Attributable%20to%20Non-controlling%20Interests) This section details the portion of net loss allocated to non-controlling interests in the company's majority-owned affiliates Net Loss Attributable to Non-controlling Interests (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------------------------------------ | :------------ | :------------ | :------- | | Net loss attributable to non-controlling interest | $(387) | $(854) | +$467 | - Net loss attributable to non-controlling interests decreased by **$0.5 million**, reflecting **20%** of Beyond Cancer's net loss and **11.8%** of NeuroNOS's net loss[155](index=155&type=chunk) [Net Loss Attributed to Common Stockholders](index=41&type=section&id=Net%20Loss%20Attributed%20to%20Common%20Stockholders) This section reports the net loss and loss per share attributable to the company's common stockholders, reflecting overall financial performance Net Loss Attributed to Common Stockholders (in thousands, except per share data) | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------------------------------------------ | :------------ | :------------ | :------- | | Net loss attributable to Beyond Air, Inc. Stockholders | $(7,691) | $(12,201) | +$4,510 | | Net basic and diluted loss per share | $(1.53) | $(5.32) | +$3.79 | - Net loss attributable to common stockholders decreased by **$4.5 million**, and loss per share decreased by **$3.79**, indicating improved financial performance[156](index=156&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its short-term and long-term financial obligations, including cash position and future funding requirements - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities of **$6.5 million** and restricted cash of **$0.2 million**[164](index=164&type=chunk) - Management believes there is substantial doubt about the company's ability to meet its obligations with current cash and will require additional funding within one year[165](index=165&type=chunk) - Future capital needs depend on the success and costs of commercialization, preclinical studies, clinical trials, and regulatory approvals for product candidates[166](index=166&type=chunk) [Cash Flows](index=41&type=section&id=Cash%20Flows) This section provides a summary of cash flows from operating, investing, and financing activities, indicating changes in the company's cash position Cash Flow Activities (in thousands) | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(4,526) | $(10,180) | | Net cash provided by investing activities | $576 | $3,114 | | Net cash provided by (used in) financing activities | $4,066 | $(264) | | Effect of exchange rate changes | $127 | $111 | | **Net increase (decrease) in cash, cash equivalents and restricted cash** | **$243** | **$(7,218)** | - The company experienced a net increase of **$243 thousand** in cash, cash equivalents, and restricted cash in Q1 2025, a significant improvement from a net decrease of **$7,218 thousand** in Q1 2024[157](index=157&type=chunk) [Operating Activities](index=41&type=section&id=Operating%20Activities) This section analyzes cash flows from operating activities, highlighting the impact of net loss and non-cash adjustments on cash utilization - Net cash used in operating activities decreased to **$4.5 million** in Q1 2025 from **$10.2 million** in Q1 2024, primarily due to a reduced net loss and lower non-cash adjustments[158](index=158&type=chunk)[159](index=159&type=chunk) [Investing Activities](index=41&type=section&id=Investing%20Activities) This section details cash flows from investing activities, primarily related to marketable securities and property and equipment purchases - Net cash provided by investing activities was **$0.6 million** in Q1 2025, mainly from redeeming marketable securities (**$0.8 million**) and purchasing property and equipment (**$0.2 million**)[160](index=160&type=chunk) - This represents a decrease from **$3.1 million** provided in Q1 2024, which included a larger net redemption of marketable securities (**$5.8 million**)[161](index=161&type=chunk) [Financing Activities](index=41&type=section&id=Financing%20Activities) This section describes cash flows from financing activities, including proceeds from equity offerings and advanced financing, and loan repayments - Net cash provided by financing activities was **$4.1 million** in Q1 2025, primarily from common stock issuance through an At-The-Market (ATM) offering (**$2.4 million**) and advanced financing from a related party (**$2.0 million**)[162](index=162&type=chunk) - This contrasts with net cash used of **$0.3 million** in Q1 2024, which was solely for loan repayments[163](index=163&type=chunk) [Future Funding Requirements](index=41&type=section&id=Future%20Funding%20Requirements) This section outlines the company's anticipated need for additional capital to sustain operations and fund product development, along with current financing efforts - The company expects to incur net losses and cash outflows for at least the next twelve months and requires additional funding within one year to meet its obligations[165](index=165&type=chunk) - Current financing efforts include an existing **$11.5 million** secured loan, a recent **$2.0 million** advanced financing from a director, and an At-The-Market (ATM) equity offering with **$5.8 million** currently available for sale[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - Beyond Cancer and NeuroNOS are also pursuing fundraising, with NeuroNOS's **$2.0 million** private placement still open for investment[170](index=170&type=chunk) - The company's ability to continue operating beyond the third fiscal quarter of 2026 is largely dependent on the successful commercial launch of LungFit PH, obtaining international partners, and raising additional funds[173](index=173&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risks, primarily focusing on foreign currency exchange rates, which may impact its financial position - The company's primary market risk exposure is a result of foreign currency exchange rates[175](index=175&type=chunk) [ITEM 4. Controls and Procedures](index=44&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as assessed by management - Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[176](index=176&type=chunk) [Changes in Internal Control Over Financial Reporting](index=44&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports that there were no material changes to the company's internal control over financial reporting during the period - There were no changes made to the company's internal control over financial reporting during the three months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[177](index=177&type=chunk) [PART II OTHER INFORMATION](index=45&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and equity sales [ITEM 1. Legal Proceedings](index=45&type=section&id=ITEM%201.%20Legal%20Proceedings) This section reports on any legal proceedings involving the company - There are no legal proceedings to report[179](index=179&type=chunk) [ITEM 1A. Risk Factors](index=45&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers to the company's risk factors - There have been no material changes to the risk factors previously disclosed in Part I, 'Item 1A. Risk Factors' of the company's 2025 Annual Report on Form 10-K[180](index=180&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on any unregistered sales of equity securities and the use of proceeds - There were no unregistered sales of equity securities or use of proceeds to report[181](index=181&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=45&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section reports on any defaults upon senior securities - There were no defaults upon senior securities to report[182](index=182&type=chunk) [ITEM 4. Mine Safety Disclosures](index=45&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section provides mine safety disclosures, if applicable - Mine safety disclosures are not applicable to the company[183](index=183&type=chunk) [ITEM 5. Other Information](index=45&type=section&id=ITEM%205.%20Other%20Information) This section includes other information not covered elsewhere, such as Rule 10b5-1 trading arrangements - No director or officer of the company adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2025[184](index=184&type=chunk) [ITEM 6. Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications and XBRL documents - The exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as well as Inline XBRL documents[186](index=186&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) This section contains the official signatures of the company's authorized officers, certifying the accuracy of the report - The report was duly signed on August 12, 2025, by Steven Lisi, President and Chief Executive Officer, and Douglas Larson, Chief Financial Officer[190](index=190&type=chunk)