XAIR

• Strategic & Financial Positioning

  • Completed an up to $30 million financing that strengthens the company's balance sheet and provides financial flexibility for upcoming initiatives
  • Regained compliance with NASDAQ listing requirements
  • The upfront $10 million gross proceeds from the financing, plus potential additional $20 million from warrant exercises, supports planned commercial launch activities and international expansion

• Commercial Development for LungFit PH

  • Expanded group purchasing organization (GPO) partnerships, adding a third major national U.S. GPO to existing agreements with Premier and Vizion, granting access to a large share of U.S. hospitals and health systems
  • Grew the commercial contracting pipeline, which has doubled over the past five to six months as sales activity has accelerated
  • Expanded the global distribution network, with existing partnerships covering more than 40 countries; strengthened finances allow the company to better support partner launch activities in these international markets

• Second-Generation LungFit PH Regulatory Progress

  • The PMA supplement for the second-generation system was submitted to the FDA in June 2025, and the review process is ongoing
  • The FDA has been highly communicative during the review, and the company remains on track for a potential approval in H2 2026
  • The process is currently in the audit phase; the company has submitted nearly all required documentation, is prepared for upcoming audits of its manufacturing and development activities, and is not facing any material delays

• Financial Performance

  • Q2 2026 revenue was $1.8 million, flat compared to the prior quarter (March 2026) and equal to revenue in the year-ago Q2 2025
  • Gross margin improved to 13% from 9% in the year-ago quarter, marking the third consecutive quarter of positive gross profit
  • R&D expenses were $2 million in Q2 2026, down from $3.1 million in Q2 2025
  • SG&A expenses were $4.9 million in Q2 2026, up slightly from $4.7 million in Q2 2025
  • Net loss attributable to common stockholders was $7.9 million ($11 per basic/diluted share) in Q2 2026, compared to a $7.7 million loss ($30.67 per share) in Q2 2025
  • Cash, equivalents, restricted cash and marketable securities totaled $15.2 million as of June 30, 2026, not including the recent $10 million upfront financing proceeds

• Management reaffirmed its prior calendar 2026 revenue guidance of $8 million, which represents ~15% year-over-year growth over 2025 full-year revenue. No revenue from the second-generation LungFit PH is included in this 2026 guidance, pending FDA approval.
• Management reaffirmed its prior calendar 2027 revenue guidance of $16 to $18 million, which represents more than 110% year-over-year growth at the midpoint compared to 2026 guidance. This 2027 guidance includes expected revenue from the commercial launch of the second-generation LungFit PH, conditional on FDA approval.
• Management maintains that potential FDA approval of the second-generation LungFit PH remains on track for the second half of 2026, with the most likely timeline falling in Q4 2026, though final timing is subject to the FDA's review process.

Beyond Air does not break out separate financial performance for multiple product segments in this call. All reported $1.8 million in Q2 2026 revenue is attributable to the first-generation LungFit PH product, as revenue from the second-generation LungFit PH is not included in 2026 guidance and is still pending FDA approval. No other product segments contributed revenue in the quarter.

• Final timing and outcome of FDA approval for the second-generation LungFit PH is uncertain and subject to the FDA's regulatory review process, including scheduled audits and any additional information requests that may arise.
• The company is currently in a cash burn position, and future capital needs will depend on regulatory outcomes and the pace of commercial adoption.
• Medical device sales have long lead times, which means current contracting pipeline growth will not translate to immediate revenue. General hospital budget spending patterns may impact near-term adoption of the product.

Q: Analyst asked how the new $30 million financing will be allocated, and where the largest investments will be made over the next several quarters. / A: The majority of the capital will go toward operational activities for the second-generation LungFit PH. Near-term spending supports production of pilot devices, and after FDA approval, capital will fund production scaling to support commercial launch in 2027 and beyond. A portion of the capital will also cover the company's ongoing operating cash burn during this pre-launch period.

Q: Analyst asked if contracting activity is accelerating, and whether hospitals will be more willing to adopt the product as they use remaining year-end budgets. / A: Contracting activity has picked up significantly, with the company's commercial opportunity pipeline doubling over the past five to six months. While sales cycles remain long, the company is seeing substantial new growth in pipeline opportunities. Management reaffirmed confidence in hitting the 2026 full-year revenue target.

Q: Analyst asked for an update on the PMA supplement review for second-generation LungFit PH, including whether all materials have been submitted and if approval is still expected in 2026 H2. / A: The FDA review process is progressing well, with frequent, fast communication from the FDA review team. The company has submitted almost all required documentation, and the process is now in the audit phase. The company is prepared for upcoming audits, and any outstanding information requests are minor and do not cause delays. Approval is still expected in 2026 H2, which given the current timeline makes Q4 2026 the most likely outcome, though the exact timing is controlled by the FDA.

Q: Analyst asked about management's confidence in hitting the 2026 $8 million revenue guidance, given that most revenue is expected in the second half of the year. / A: Management corrected that 2026 guidance is $8 million (not an $8 to $10 million range), and reaffirmed full confidence in this target. The company has already won multiple new contracts in Q2 2026 that will contribute to second-half revenue growth, and the company is on track to hit the full-year target. Management also reaffirmed confidence in the 2027 $16 to $18 million revenue guidance.