Beyond Air Reports Financial Results for First Quarter of Fiscal Year 2024 Reported commercial sales for LungFit PH for the treatment of term and near-term neonates with hypoxic respiratory failure Currently have in exce

Air Reports Financial Results

First Quarter of Fiscal Year 2024

commercial sales for LungFit PH for the treatment of term and near-term neonates with hypoxic respiratory failure

have in excess of $1 million in annual commercial LungFit PH contracts

up to $40 million in debt financing from Avenue Capital

agreement with FDA to run a U.S. clinical study in patients hospitalized with viral community acquired pneumonia (VCAP), which will be

performed in the 2023-24 winter season

pipeline with addition of pre-clinical program for selective neuronal nitric oxide synthase (nNOS) inhibitors for the treatment of autism

spectrum disorder and other indications

call scheduled for 4:30 p.m. ET today, August 10th

City, NY, August 10, 2023 - Beyond Air, Inc. (NASDAQ: XAIR) ("Beyond Air" or the "Company"),

a commercial stage medical device and biopharmaceutical company focused on harnessing the power of endogenous and exogenous nitric oxide

(NO) to improve the lives of patients suffering from respiratory illnesses, neurological disorders and solid tumors (through its affiliate

Beyond Cancer, Ltd. ("Beyond Cancer")), today announced financial results for its fiscal quarter ended June 30, 2023.

concluded the first quarter of our fiscal year 2024 with LungFit PH adopted as the nitric oxide system of choice at several hospitals

in the United States. Our commercial team has implemented training programs and support at each of these hospitals, and report that LungFit

PH has been well received. The initial success of the LungFit PH commercial rollout has allowed our team to hone their sales and support

processes and move into the second phase of the commercial launch which has resulted in annual contracted revenue in excess of $1 million

at this time," said Steve Lisi, Chairman and Chief Executive Officer of Beyond Air.

addition to our commercial accomplishments, we presented promising preclinical data for our ultra-high concentration nitric oxide (UNO)

program to treat solid tumors, expanded our R&D pipeline to include selective nNOS inhibitors for the treatment of autism spectrum

disorder and came to an agreement with FDA on a VCAP protocol to conduct a clinical study in the U.S. this winter. We believe that each

of these programs are positioning Beyond Air to provide improved treatment options for various patient populations with high unmet medical

needs, while also generating significant value for our investors," continued Mr. Lisi.

Highlights and Upcoming Milestones

Results for the Fiscal Quarter Ended June 30, 2023

for the three months ended June 30, 2023 were $0.1 million compared to zero for the quarter ended June 30, 2022. Cost of revenue of $0.3

million was recognized for the three months ended June 30, 2023, compared to $0 for the three months ended June 30, 2022.

and development expenses for the three months ended June 30, 2023 were $4.7 million as compared to $3.2 million for the three months

ended June 30, 2022. The increase of $1.5 million was attributed primarily to an increase in development costs in cancer research and

autism as well as an increase in stock-based compensation and salaries.

and administrative expenses for the three months ended June 30, 2023 and June 30, 2022 were $10.9 million and $8.2 million, respectively.

The increase of $2.7 million was attributed primarily to an increase in stock-based compensation and salaries.

loss attributed to common stockholders for the three months ended June 30, 2023, was ($14.1) million or a loss of ($0.45) per share,

basic and diluted. The Company's net loss attributed to common stockholders for the three months ended June 30, 2022 was ($10.9)

million or a loss of ($0.37) per share, basic and diluted.

June 2023 up to $40 million in debt financing was provided to the Company from Avenue Capital, of which $17.5 million in gross funds

were drawn. As of June 30, 2023, the Company had cash, cash equivalents and marketable securities of $57.0 million and $2.7 million in

August 10th @ 4:30 PM ET

Air is a commercial stage medical device and biopharmaceutical company dedicated to harnessing the power of endogenous and exogenous

nitric oxide (NO) to improve the lives of patients suffering from respiratory illnesses, neurological disorders and solid tumors. The

Company has received FDA approval for its first system, LungFit PH, for the treatment of term and near-term neonates

with hypoxic respiratory failure. Beyond Air is currently advancing its other LungFit systems in clinical trials for the treatment of

severe lung infections such as viral community-acquired pneumonia (including COVID-19), and nontuberculous mycobacteria (NTM). The Company

has also partnered with The Hebrew University of Jerusalem to advance a pre-clinical program dedicated to the treatment of autism spectrum

disorder (ADS) and other neurological disorders. Beyond Cancer, Ltd., an affiliate of Beyond Air, is investigating ultra-high concentrations

of NO with a proprietary delivery system to target certain solid tumors in the pre-clinical setting. For more information, visit www.beyondair.net.

Oxide is a powerful molecule, naturally synthesized in the human body, proven to play a critical role in a broad array of biological

functions. In the airways, NO targets the vascular smooth muscle cells that surround the small resistance arteries in the lungs. Currently,

exogenous inhaled NO is used in adult respiratory distress syndrome, post certain cardiac surgeries and persistent pulmonary hypertension

of the newborn to treat hypoxemia. Additionally, NO is believed to play a key role in the innate immune system and in vitro studies

suggest that NO possesses anti-microbial activity not only against common bacteria, including both gram-positive and gram-negative, but

also against other diverse pathogens, including mycobacteria, viruses, fungi, yeast and parasites, and has the potential to eliminate

multi-drug resistant strains.

Air's LungFit is a cylinder-free, phasic flow generator and delivery system and has been designated as a medical device by the

U.S. Food and Drug Administration (FDA). The ventilator compatible version of the device can generate NO from ambient air on demand for

delivery to the lungs at concentrations ranging from 1 ppm to 80 ppm. The LungFit system could potentially replace large, high-pressure

NO cylinders providing significant advantages in the hospital setting, including greatly reducing inventory and storage requirements,

improving overall safety with the elimination of NO2 purging steps, and other benefits. LungFit can also deliver NO at concentrations

at or above 80 ppm for potentially treating severe acute lung infections in the hospital setting (e.g. COVID-19, bronchiolitis)

and chronic, refractory lung infections in the home setting (e.g. NTM). With the elimination of cylinders, Beyond Air intends

to offer NO treatment in the home setting.

Beyond Air's LungFit PH is approved for commercial use only in the United States of America to treat term and near-term neonates

with hypoxic respiratory failure. Beyond Air's other LungFit systems are not approved for commercial use and are for investigational

use only. Beyond Air is not suggesting NO use over 80 ppm or use at home.

pulmonary hypertension of the newborn (PPHN) is a lethal condition and secondary to failure of normal circulatory transition at birth.

It is a syndrome characterized by elevated pulmonary vascular resistance (PVR) that causes labile hypoxemia due to decreased pulmonary

blood flow and right-to-left shunting of blood. Its incidence has been reported as 1.9 per 1000 live births (0.4-6.8/1000 live

births) with mortality rate ranging between 4-33%. This syndrome complicates the course of about 10% of infants with respiratory

failure and remains a source of considerable morbidity and mortality. NO gas is a vasodilator, is approved in dozens of countries to

improve oxygenation and reduces the need for extracorporeal membrane oxygenation (ECMO) in term and near-term (>34 weeks gestation)

neonates with hypoxic respiratory failure associated with clinical or echocardiographic evidence of pulmonary hypertension in conjunction

with ventilator support and other appropriate agents.

Viral Community-Acquired Pneumonia (VCAP)

adults, viruses have been identified as the causative agents in approximately 100 million cases of community-acquired pneumonia per year.

While viral pneumonia in adults is most commonly caused by rhinovirus, respiratory syncytial virus (RSV) and influenza virus, newly emerging

viruses (including SARS-CoV-1, SARS-CoV-2, avian influenza A, and H1N1 viruses) have been identified as pathogens contributing to the

overall burden of adult viral pneumonia. Patients aged 65 years or older are at particular risk for death from the disease, as are patients

with other underlying health conditions or weakened immune systems. There is no consensus regarding the use of antiviral drugs to treat

viral pneumonia, and specific preventative measures are currently limited to the influenza vaccine. Given that current treatment recommendations

are largely limited to supportive care, there is an unmet medical need for effective treatment options. NO may prove to be a treatment

as the impact on the lung should result in bronchodilation, reduction in inflammation and inhibition of the viral replication process.

infection is a rare and serious bacterial infection in the lungs causing debilitating pulmonary disease associated with high morbidity

and mortality. NTM infection is acquired by inhaling aerosolized bacteria from the environment, and can lead to NTM lung disease, a progressive

and chronic condition. According to the Cystic Fibrosis Foundation, 13% of U.S. cystic fibrosis patients had a positive culture for a

NTM species in 2017. NTM is considered an emerging public health concern worldwide because of its multi-drug antibiotic resistance. Current

treatment guidelines suggest a combination of multiple antibiotics dosed chronically for as long as two years. These complex, expensive

and invasive regimens have a poor record in the treatment of Mycobacterium abscessus complex (MABSC) and refractory Mycobacterium avium

complex (MAC) and have the potential to cause severe adverse events. Beyond Air's system is designed to deliver 150 - 400

ppm NO to the lungs, and early data, including from the pilot study of the LungFit GO, indicate that this range of NO concentrations

could have a positive effect on patients infected with NTM.

majority of hospital admissions of infants with bronchiolitis are caused by respiratory syncytial virus (RSV). RSV is a common and highly

transmissible virus that infects the respiratory tract of most children before their second birthday. While most infants with RSV present

with minor respiratory symptoms, a small percentage develop serious lower airway infections, termed bronchiolitis, which can become life-threatening.

The absence of treatment options for bronchiolitis limits the care of these sick infants to largely supportive measures. Beyond Air's

system is designed to effectively deliver 150 - 400 ppm NO, for which preliminary studies indicate may eliminate bacteria, viruses,

fungi, and other microbes from the lungs.

Cancer, Ltd., an affiliate of Beyond Air, Inc., is a development-stage biopharmaceutical and medical device company utilizing (UNO via