Beyond Air has terminated the loan and security agreements with Avenue Capital and entered into an $11.5 million loan agreement with an insider-led investor group. Beyond Air and Avenue Capital have reached an agreement to extinguish the Avenue Capital senior secured term loan for a one-time payment of $17.85 million. This agreement eliminates the debt and interest payments that would have been made to Avenue Capital from October 1, 2024 through June 30, 2026 of $12.0 million. In addition, Avenue Capital is investing $3.35 million in Beyond Air through the private placement equity offering also announced today. The Company entered into a $11.5 million royalty funding agreement led by certain Beyond Air board members based on net sales of LungFit PH. This debt will carry a payment-in-kind interest rate of 15% until July 2026. Payments for interest and principal will commence in July 2026 and be determined based on an 8% royalty rate on sales of LungFit PH. Payments will continue until principal and accrued interest are paid off. Since July 1, 2024, Beyond Air has increased the number of hospital contracts by 60%, including a contract with the U.S. Naval Hospital Guam, made possible through the Company’s collaboration with TrillaMed. The Company believes the retirement of the Avenue debt the royalty based loan and concurrent equity financing will provide sufficient cash runway to support its operations through June 2026. The Company is withdrawing its previous revenue guidance for fiscal year 2025.

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