NOTE 5 STOCKHOLDERS’ EQUITY

On May 14, 2020, the Company entered into the New Stock Purchase Agreement with LPC (the “New Stock Purchase Agreement”), which provides for the issuance of up to $40 million of its common stock which the Company may sell from time to time in its sole discretion to LPC over 36 months, provided that the closing price of the Company’s common stock is not below $0.25 per share and subject to certain other conditions and limitations set forth in the New Stock Purchase Agreement. For the six months ended September 30, 2022 and September 30, 2021, the Company received net proceeds of $0 and $1.0 million from the sale of 0 and 200,000 shares of common stock, respectively. As of September 30, 2022, there was a balance of approximately $18.1 million available under the New Stock Purchase Agreement.

On February 4, 2022, the Company entered into the “2022 ATM”, allowing the Company to sell its common stock for aggregate sales proceeds of up to $50 million from time to time and at various prices, subject to the conditions and limitations set forth in the 2022 ATM. If shares of the Company’s common stock are sold, there is a 3% fee paid to the sales agent.

For both the three months and six months ended September 30, 2022, the Company received net proceeds of $0.2 million from the sale of 19,300 shares of common stock.

For the three and six months ended September 30, 2021, the Company received net proceeds of $15.0 million and $22.4 million from the sale of 1,659,664 and 2,899,069 shares of common stock, respectively on its previous ATM (the “2020 ATM”).

As of September 30, 2022, there were $49.8 million in funds available under the 2022 ATM.

BEYOND AIR, INC. AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 5 STOCKHOLDERS’ EQUITY (continued)

Restricted Stock Units

The fair value for the restricted stock unit awards was valued at the closing price of the Company’s common stock on the date of grant. Restricted stock units vest annually over five years.

A summary of the Company’s restricted stock unit awards for the period ended September 30, 2022 is as follows:

SCHEDULE OF RESTRICTED STOCK AWARDS 

Stock-based compensation expense related to these stock issuances for the three months ended September 30, 2022 and September 30, 2021 was $701 thousand and $161 thousand, respectively. Stock-based compensation for the six months ended September 30, 2022 and September 30, 2021 was $1,395 thousand and $319 thousand, respectively.

Stock Option Plans

The Company’s Fourth Amended and Restated 2013 Beyond Air Equity Incentive Plan (the “2013 BA Plan”) allows for awards to officers, directors, employees, and consultants of stock options, restricted stock units and restricted shares of the Company’s common stock. The vesting terms of the options issued under the 2013 BA Plan are generally four years and expire in ten years from the grant date. The 2013 BA Plan has 7,600,000 shares authorized for issuance. As of September 30, 2022, 321,761 shares were available under the 2013 BA Plan.

A summary of the change in options for the six months ended September 30, 2022, is as follows:

SCHEDULE OF OPTION ACTIVITY 

The Company’s 2021 Beyond Cancer Ltd Equity Incentive Plan (the “2021 BC Plan”) allows for awards to officers, directors, employees, and consultants of stock options, restricted stock units and restricted shares of Beyond Cancer’s common stock. The vesting terms of the options issued under the 2021 BC Plan are generally four years and expire in ten years from the grant date. On December 1, 2021, the Company’s Board of Directors approved to reserve for issuance 2,000,000 shares of common stock. As of September 30, 2022, 157,500 shares were available under the 2021 BC Plan.

SCHEDULE OF OPTION ACTIVITY 

BEYOND AIR, INC. AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 5 STOCKHOLDERS’ EQUITY (continued)

As of September 30, 2022, the Company had unrecognized stock-based compensation expense in the 2013 BA Plan of approximately $7.7 million which is expected to be expensed over the weighted average remaining service period of 1.4 years. For the six months ended September 30, 2022 and September 30, 2021, the weighted average fair value of options granted was $5.98 and $7.92 per share, respectively.

As of September 30, 2022, the Company had unrecognized stock-based compensation expense in the 2021 BC Plan of approximately $10.3 million which is expected to be expensed over the weighted average remaining service period of 1.8 years. For the six months ended September 30, 2022, the weighted average fair value of options granted was $8.28 per share.

The following was utilized to calculate the fair value of options on the date of grant:

SCHEDULE OF FAIR VALUE OF OPTION 

The following summarizes the components of stock-based compensation expense which include stock options and restricted stock for the three and six months ended September 30, 2022 and September 30, 2021, respectively:

SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE 

Warrants

A summary of the Company’s outstanding warrants as of September 30, 2022 is as follows:

SUMMARY OF COMPANY’S OUTSTANDING WARRANTS 

BEYOND AIR, INC. AND ITS SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 5 STOCKHOLDERS’ EQUITY (continued)

No warrants were issued or exercised in the six months ended September 30, 2022. For both the three and six months ended September 30, 2021, 415,664 warrants were exercised on a cashless basis in exchange for 271,811 shares.