Summary of Beyond Air Earnings Call (Q1 2027)

1Key Financial Results and Metrics:

Revenue: $1.8 million for the quarter ended June 30, 2026, unchanged from the previous quarter.

Gross Margin: Improved to 13% from 9% year-over-year, marking the third consecutive quarter of positive gross profit.

Expenses:

R&D expenses decreased to $2 million from $3.1 million year-over-year.

SG&A expenses rose slightly to $4.9 million from $4.7 million.

Other expenses increased to $1.5 million from $500,000.

Net Loss: $7.9 million, or $11 per share, compared to a net loss of $7.7 million, or $30.67 per share, in the same quarter last year.

Cash Position: As of June 30, 2026, cash and equivalents totaled $15.2 million, excluding a recent financing round of up to $30 million.

2Strategic Updates and Business Highlights:

Strengthened balance sheet through a $30 million financing, enhancing financial flexibility for operations and planned product launches.

Expanded commercial foundation for LungFit PH, including a new national group purchasing agreement with a major GPO, complementing existing agreements with Premier and Vizient.

Focused on international distribution expansion, with partnerships covering over 40 countries.

Preparing for the potential launch of the second-generation LungFit PH system, pending FDA approval, with a PMA supplement submitted in June 2025.

3Forward Guidance and Outlook:

Reaffirmed revenue guidance of $8 million for calendar year 2026, with expectations of $16 million to $18 million for 2027, indicating over 110% growth at the midpoint compared to 2026.

The 2027 guidance includes anticipated revenue from the second-generation LungFit PH system, contingent on FDA approval.

4Bad News, Challenges, or Points of Concern:

Revenue growth remains stagnant in the short term, with flat revenue compared to the previous quarter.

The company is still in a cash burn position, which may impact operational flexibility until the second-generation product launch.

The FDA approval process for the second-generation LungFit PH system remains uncertain, with no specific timeline provided, although management is optimistic about the review process.

5Notable Q&A Insights:

Management indicated that the financing will primarily support operations and device production for the upcoming launch.

There has been a notable increase in contracting activity, with the commercial pipeline doubling over the past six months, suggesting potential for revenue growth in the latter half of the year.

The FDA's review process for the PMA supplement is progressing well, with positive communication noted, although the exact timing for a decision remains uncertain, likely falling in Q4 2026.

Management expressed confidence in achieving the revenue targets for the second half of 2026, bolstered by recent contract wins and international sales momentum. Overall, Beyond Air is positioning itself for future growth, particularly with the anticipated launch of its second-generation product, while navigating current financial challenges and the complexities of regulatory approval.