UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to _________

Commission File Number: 001-38892

BEYOND AIR, INC.

(Exact name of registrant as specified in its charter)

Delaware		47-3812456
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

900 Stewart Avenue, Suite 301
Garden City, NY		11530
(Address of principal executive offices)		(Zip Code)

516-665-8200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol		Name of each exchange on which registered:
Common Stock, par value $0.0001 per share		XAIR		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

	Large accelerated filer ☐	Accelerated filer ☐
	Non-accelerated filer ☒	Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 12, 2026, there were 957,631 shares of common stock, par value $0.0001 per share, outstanding.

BEYOND AIR, INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q FILING

FOR THE PERIOD ENDED JUNE 30, 2026

Table of Contents

	Page

PART I FINANCIAL INFORMATION	3

ITEM 1. Condensed Consolidated Financial Statements (Unaudited)	3

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	35

ITEM 4. Controls and Procedures	35

PART II OTHER INFORMATION	36

ITEM 1. Legal Proceedings	36

ITEM 1A. Risk Factors	36

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	36

ITEM 3. Defaults Upon Senior Securities	36

ITEM 4. Mine Safety Disclosures	36

ITEM 5. Other Information	36

ITEM 6. Exhibits	37

SIGNATURES	38

PART I FINANCIAL INFORMATION

ITEM 1. Financial Statements.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

INDEX

	Page

Condensed Consolidated Balance Sheets	4

Condensed Consolidated Statements of Operations and Comprehensive Loss	5

Condensed Consolidated Statements of Changes in Stockholders’ Equity	6

Condensed Consolidated Statements of Cash Flows	8

Notes to Condensed Consolidated Financial Statements	9– 22

BEYOND AIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	June 30, 2026			March 31, 2026
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	5,509		$	6,740
Marketable securities		4,303			4,901
Restricted cash		5,405			5,622
Accounts receivable, net		1,140			1,086
Inventory, net		1,292			1,406
Other current assets and prepaid expenses		5,200			5,012
Total current assets		22,849			24,767

Licensed right to use technology		966			1,018
Right-of-use lease assets		1,066			1,193
Property and equipment, net		7,916			8,249
Other assets		94			158
TOTAL ASSETS	$	32,891		$	35,385

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,455		$	2,417
Accrued expenses and other current liabilities		3,998			3,372
Operating lease liability, current portion		223			321
Loans payable, current portion		231			401
Total current liabilities		6,907			6,511

Operating lease liability, net		977			1,023
Long-term debt, net		22,167			21,639
Warrant liability		1			2
Total liabilities		30,052			29,175

Stockholders’ equity
Preferred Stock, $0.0001 par value per share: 10,000,000 shares authorized, 0 shares issued and outstanding		-			-
Common Stock, $0.0001 par value per share: 500,000,000 shares authorized, 743,418 and 589,639 shares issued and outstanding as of June 30, 2026 and March 31, 2026, respectively (1)		-			-
Treasury stock		(25	)		(25	)
Additional paid-in capital		329,415			325,588
Accumulated deficit		(327,506	)		(319,571	)
Accumulated other comprehensive income		113			134
Total stockholders’ equity attributable to Beyond Air, Inc		1,997			6,126
Non-controlling interest		842			84
Total stockholders’ equity		2,839			6,210
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	32,891		$	35,385

(1)	Prior period results have been adjusted to reflect the one-for-twenty stock split in July 2026. See Note 1, Organization and Business for details.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BEYOND AIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share data)

(UNAUDITED)

	2026			2025
	For the Three Months Ended
	June 30,
	2026			2025

Revenues	$	1,768		$	1,760

Cost of revenues		1,543			1,604

Gross profit		225			156

Operating expenses:

Research and development		1,959			3,086
Selling, general and administrative		4,878			4,687
Total operating expenses		6,837			7,773

Loss from operations		(6,612	)		(7,617	)

Other income/(expense):
Dividend/interest income		103			28
Interest and finance expense		(1,492	)		(548	)
Change in fair value of warrant liability		1			17
Foreign exchange gain/(loss)		40			(41	)
Loss on extinguishment of debt		(153	)		-
Loss on disposal of fixed assets		(52	)		(11	)
Other income		11			94
Total other expense		(1,542	)		(461	)

Loss before income taxes		(8,154	)		(8,078	)

Provision for income taxes		-			-

Net loss	$	(8,154	)	$	(8,078	)

Less: net loss attributable to non-controlling interest		(219	)		(387	)

Net loss attributable to Beyond Air, Inc.	$	(7,935	)	$	(7,691	)

Other comprehensive income/(loss), net of tax
Foreign currency translation adjustment		(21	)		127

Comprehensive loss attributable to Beyond Air, Inc.	$	(7,956	)	$	(7,564	)

Net basic and diluted loss per share attributable to Beyond Air, Inc. (1)	$	(11.00	)	$	(30.67	)

Weighted average number of shares of common stock outstanding - basic and diluted (1)		721,328			250,747

(1)	Prior period results have been adjusted to reflect the one-for-twenty stock split in July 2026. See Note 1, Organization and Business for details.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BEYOND AIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 30, 2026

(in thousands, except share data)