NOTE 1 ORGANIZATION AND BUSINESS Beyond Air, Inc. (Beyond Air or the Company) was incorporated on April 24, 2015. On June 25, 2019, the Companys name was changed to Beyond Air, Inc. from AIT Therapeutics, Inc. The Company has the following wholly-owned subsidiaries: Beyond Air, Ltd. (BA Ltd.) was incorporated in Israel on May 1, 2011. Advanced Inhalation Therapies (AIT), a wholly owned subsidiary of Beyond Air, Ltd. was incorporated on August 29, 2014, in Delaware. Beyond Air Australia Pty Ltd. was incorporated on December 17, 2019 in Australia. Beyond Air Ireland Limited was incorporated on March 5, 2020 in Ireland. The Company is a clinical-stage medical device and biopharmaceutical company focused on developing inhaled Nitric Oxide (NO) for the treatment of patients with respiratory conditions, including serious lung infections and pulmonary hypertension, and gaseous NO for the treatment of solid tumors. Since its inception, the Company has devoted substantially all of its efforts to research and development. The Company is developing a nitric oxide generator and delivery system (the LungFit  system) that is capable of generating NO from ambient air. The LungFit can generate NO up to 400 parts per million (ppm) for delivery to a patients lungs. The LungFit can deliver NO either continuously or for a fixed amount of time at various flow rates and has the ability to either titrate dose on demand or maintain a constant dose. Our current areas of focus with the LungFit are persistent pulmonary hypertension of the newborn (PPHN), severe acute respiratory syndrome coronavirus 2 (SARS CoV-2), bronchiolitis (BRO) and nontuberculous mycobacteria (NTM) lung infection. The Companys current product candidates will be subject to premarket reviews and approvals by the U.S. Food and Drug Administration, or the FDA, as well as similar regulatory agencies in other countries or regions. If approved, our system will be marketed as a medical device initially in the United States. Liquidity Risks and Uncertainties The Company has incurred cash used in operating activities of $5.5 million for the three months ended June 30, 2020, and has accumulated losses of $64.3 million. The Company has cash, cash equivalents and restricted cash of $24.4 million as of June 30, 2020. Based on managements current business plan, the Company estimates it will have enough cash and liquidity sufficient to finance its operating requirements for at least one year from the date of filing these financial statements. The Companys future capital needs and the adequacy of its available funds beyond one year will depend on many factors, including, but not necessarily limited to, the actual cost and time necessary for clinical studies and other actions needed to obtain regulatory approval of our medical devices in development as well as the cost to launch our first product for PPHN, assuming approval of our Premarketing Application (PMA) which is expected to be filed at the end of September 2020. The Company will be required to raise additional funds through sale of equity or debt securities or through strategic collaboration and/or licensing agreements, to fund operations and continue our clinical trials until we are able to generate enough product or royalty revenues, if any. Financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed could have a material adverse effect on our growth plans, our results of operations and our financial condition. The Companys future liquidity includes access to the following: a) On April 2, 2020, Beyond Air, Inc. entered into an At-The-Market Equity Offering for $50 million and utilized the Companys shelf registration statement, see Note 5. b) On March 17, 2020, the Company entered into a $25 million unsecured loan facility agreement (the Facility Agreement) with certain lenders. The Company has drawn down the first of five tranches of $5 million and has the ability to drawn down on an additional $5 million tranche at any time prior March 17, 2022 as well as the ability to draw down the remaining $15 million after the FDA approval of the LungFit PH product. see Note 11. c) On May 14, 2020, the Company entered into a $40 million purchase agreement (New Purchase Agreement) with Lincoln Park Capital Fund, LLC (LPC), that replaces the existing $20 million purchase agreement. The New Purchase Agreement provides for the issuance of up to $40 million of the Companys common stock through May 2023 at the Companys discretion, The Company utilized the shelf registration statement, see Note 5.