Beyond Air Reports Financial Results for Third Quarter of Fiscal Year 2024 Commercial demand for LungFit PH increasing; manufacturing of upgraded devices is ramping up to meet growing demand PMA supplement for the expans

Air Reports Financial Results

Third Quarter of Fiscal Year 2024

demand for LungFit PH increasing; manufacturing of upgraded devices is ramping up to meet growing demand

supplement for the expansion of LungFit PH label to include cardiac surgery accepted for filing and under substantive review by the FDA

pilot trial of LungFit PRO to treat viral community acquired pneumonia (VCAP) underway; trial will extend over two seasons; the

pivotal study remains on track for Winter 2025/26

1 Study evaluating Beyond Cancer's ultra-high concentration nitric oxide (UNO) in advanced, R/R unresectable, primary or metastatic

cutaneous and subcutaneous solid tumors cleared the first cohort with no reported dose limiting toxicities

FY 2025 revenue guidance of $12 million to $16 million

call scheduled for 4:30 p.m. ET today, February 12th

CITY, N.Y., Feb. 12, 2024 - 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 its financial results for the fiscal quarter ended December 31, 2023.

the third quarter of fiscal year 2024, we reported solid sequential revenue growth of more than 60% compared with the second quarter.

This increasing demand for our current LungFit PH system was seen even as we prepared to launch a key software update. As our inventory

of upgraded LungFit PH grows, we expect to be able to meet accelerating demand over the next several quarters. This positive commercial

traction gives us even more confidence in hitting our fiscal year 2025 sales guidance of $12 to $16 million," said Steve Lisi,

Chairman and Chief Executive Officer of Beyond Air. "The PMA supplement for the expansion of the LungFit PH label to include cardiac

surgery was accepted for filing by the FDA in late-December and is currently under substantive review. FDA approval for this application

should generate even broader use of LungFit PH in U.S. hospitals."

Highlights and Upcoming Milestones

Results for the Fiscal Quarter Ended December 31, 2023

for the three months ended December 31, 2023 were $0.4 million compared to zero for the quarter ended December 31, 2022. Cost of revenue

of $0.7 million was recognized for the three months ended December 31, 2023, compared to $0.1 million for the three months ended December

and development expenses for the three months ended December 31, 2023 were $6.8 million as compared to $5.0 million for the three months

ended December 31, 2022. The increase of $1.8 million was due primarily to an increase in development costs associated with the pipeline.

and administrative expenses for the three months ended December 31, 2023 and December 31, 2022 were $9.8 million and $8.9 million, respectively.

The $0.9 million increase was mainly due to increases in stock based compensation, headcount and salary inflation.

loss attributed to common stockholders for the three months ended December 31, 2023, was ($16.2) million or a loss of ($0.50) per share,

basic and diluted. The Company's net loss attributed to common stockholders for the three months ended December 31, 2022 was ($12.7)

million or a loss of ($0.43) per share, basic and diluted.

cash burn in the quarter ended December 31, 2023, was $12.7 million, with payments required towards our VCAP study, development of our

Gen 2 device, continued in-human trials in Beyond Cancer and advances in our Autism program. The Company raised $5.5 million on its

ATM to partially offset the planned cash burn.

of December 31, 2023, the Company had cash, cash equivalents, marketable securities of $31.4 million as well as $5.2 million held on

deposit by our contract manufacturer.

February 12th @ 4:30 PM ET

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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 revolutionary 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) among others. Also, 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 (ASD) and other neurological disorders. Additionally, 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