Beyond Air, Inc. (XAIR) - 10-K Summary
Business Context and Reporting Period
Company: Beyond Air, Inc.
Filing Type: Form 10-K (Annual Report)
Fiscal Year Ended: March 31, 2026
Business Overview: Beyond Air is a commercial-stage medical device and biopharmaceutical company developing the LungFit® platform, which generates nitric oxide (NO) from ambient air. The company's primary approved product, LungFit® PH, treats persistent pulmonary hypertension of the newborn (PPHN). The company also operates two majority-owned subsidiaries: Beyond Cancer (80% owned), focusing on ultra-high concentration NO for solid tumors, and NeuroNOS (84.75% owned), focusing on nNOS inhibitors for neurological conditions like autism spectrum disorder.
Key Financial Metrics (Year Ended March 31, 2026)
| Metric | 2026 (in thousands) | 2025 (in thousands) |
|---|---|---|
| Revenues | $7,679 | $3,705 |
| Cost of Revenues | $7,427 | $5,368 |
| Gross Profit | $252 | $(1,663) |
| Operating Expenses | $29,296 | $42,874 |
| Net Loss | $(34,334) | $(48,479) |
| Net Loss Attributable to Beyond Air | $(33,249) | $(46,625) |
| Cash Used in Operating Activities | $(18,144) | $(38,218) |
| Cash and Cash Equivalents (End of Period) | $6,740 | $4,665 |
| Restricted Cash | $5,622 | $231 |
| Long-Term Debt (Net) | $21,639 | $9,197 |
Note: The company achieved a gross profit of $252k in 2026, reversing a gross loss of $1.7M in 2025, driven by revenue growth.
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 107% year-over-year to $7.7M, driven by new hospital contracts and international market expansion.
- Expense Reduction: Total operating expenses decreased by $13.6M (32%) to $29.3M. Research and Development (R&D) expenses dropped $6.7M due to reduced salaries and Gen II device development costs. Selling, General, and Administrative (SG&A) expenses dropped $6.9M, primarily due to lower stock-based compensation.
- Debt Financing: Long-term debt increased significantly from $9.2M to $21.6M. This includes a $13.5M secured loan (Amended Loan Agreement) and a $12.0M secured promissory note from Streeterville Capital LLC.
- Stock-Based Compensation: Total stock-based compensation expense decreased from $9.1M to $5.3M.
Guidance, Outlook, Risks, and Contingencies
Going Concern: The independent registered public accounting firm has issued an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern. The company has incurred recurring losses, has an accumulated deficit of $319.6M, and expects to require additional funding within one year.
Outlook and Strategy:
- LungFit® PH II: A PMA supplement for the second-generation device was submitted to the FDA in June 2025. The company anticipates significant revenue contribution from international partnerships in fiscal 2027 and beyond.
- Product Pipeline: Clinical development continues for LungFit® PRO (viral lung infections) and LungFit® GO (NTM lung infections). Beyond Cancer completed a Phase 1a trial for solid tumors; NeuroNOS received Orphan Drug Designation for Phelan-McDermid Syndrome and Glioblastoma.
Key Risks:
- Liquidity: Failure to raise additional capital could force the company to curtail operations.
- Debt Covenants: The company has significant debt obligations with covenants that limit additional indebtedness and dividends. Default could lead to acceleration of debt and foreclosure on assets.
- Nasdaq Listing: The company received a notice of non-compliance with the $1.00 minimum bid price rule. While a hearing panel granted continued listing subject to conditions, the company must demonstrate compliance by July 31, 2026, or face delisting.
- Regulatory: Future product candidates require FDA/CE approval, which is uncertain and costly.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of current cash ($11.6M total liquid assets) against the $18.1M annual operating cash burn and upcoming debt service obligations.
- Debt Terms: Review the specific covenants and repayment schedules of the $13.5M Loan Agreement and the $12.0M Streeterville Note, particularly the royalty interest (8% of net sales) and PIK interest components.
- Nasdaq Compliance: Monitor the stock price to ensure it meets the $1.00 minimum bid price requirement by the July 31, 2026 deadline to avoid delisting.
- Revenue Sustainability: Assess the concentration of revenue (two customers accounted for 21% of revenue in 2026) and the timeline for international revenue recognition.
- Subsidiary Funding: Confirm the funding status of Beyond Cancer and NeuroNOS, as their development relies on separate capital raises or strategic partnerships.