[Management View]
Beyond Air reported a 220% increase in GAAP revenue for FY2025, driven by U.S. hospital contracts for its LungFit platform. The company emphasized aggressive operating expense reductions and strategic international market expansion.

[Outlook]
Projected revenue for Q1 FY2026 is at least $1.7 million, with full-year revenue guidance ranging from $12 million to $16 million. The company plans to expand its LungFit PH2 device and establish new global partnerships.

[Financial Performance]
Revenue increased to $3.7 million in FY2025 from $1.2 million in FY2024. Operating expenses were reduced by 58% over six quarters. The net loss was $46.6 million, with a net cash burn of $44.1 million, 28% lower than the previous year.

[Q&A Highlights]
Question 1: Is the approval of LungFit 2.0 included in the FY26 guidance, and how does it affect hospital interest?
Answer: FY26 guidance does not include the second-generation system. Hospitals are aware of it but focus remains on the first generation. Some hospitals are adopting the first generation immediately, while others may wait.

Question 2: What are the trends in international markets for LungFit, and how do they compare to the U.S.?
Answer: It's early to see trends outside the U.S. Initial shipments are for demonstration. The international tender process is longer, but usage is consistent with U.S. practices, especially in cardiac surgery.

Question 3: Expected timeline for LungFit PH2 FDA approval and launch dynamics?
Answer: No exact timing for FDA approval due to current upheaval. Launch will involve inventory buildup and manufacturing scale-up, with demand expected to be a challenge post-approval.

Question 4: What needs to happen to reach the higher end of the $12-$16 million revenue range for FY2026?
Answer: A few large contracts or regulatory approvals in big countries could significantly impact revenue. The range is not considered large due to potential swings from pipeline activities.

Question 5: Impact of geopolitical issues on global supply and distribution?
Answer: Minimal impact from tariffs, with low single-digit percentage on cost of goods. No significant issues in Israel or Ukraine, with larger markets like France and India being more impactful.

Question 6: Confidence in revenue forecasts and potential hospital adoption models?
Answer: High confidence in forecasts, with flexibility in contract structures, including a Razer Blade model for consumables, which may increase adoption.

Question 7: Potential hospital growth and volume increase per hospital?
Answer: Volume per hospital is increasing, with some exceeding estimates. The total number of hospitals is expected to grow, but exact numbers are not speculated.

Question 8: Timeline for PMA approval and market expansion for LungFit 2.0?
Answer: PMA supplements typically take 180 days, but timelines vary. The second-generation system is similar to the first, potentially allowing for quicker approval.

Question 9: Differences in sales process and market expansion with LungFit 2.0?
Answer: Not marketing gen two yet, but it will expand the market significantly, reaching hospitals globally and increasing nitric oxide usage.

Question 10: Impact of competitor offerings on contract negotiations?
Answer: No significant change in contract dynamics despite new competitor offerings. Contracts remain stable at one, three, and five-year terms.

[Sentiment Analysis]
Analysts and management maintained a positive tone, expressing confidence in revenue forecasts and international expansion. Management was cautious about FDA approval timelines but optimistic about market opportunities.

[Quarterly Comparison]
| Metric | Q4 FY2025 | Q4 FY2024 |
|-------------------------|-----------|-----------|
| Revenue | $3.7M | $1.2M |
| Gross Profit Loss | $1.7M | $1.3M |
| Operating Expenses | $7M | $17M |
| Net Loss | $46.6M | $60.2M |
| Net Cash Burn | $44.1M | N/A |

[Risks and Concerns]
Key risks include potential delays in FDA approval for LungFit PH2, geopolitical impacts on international expansion, and maintaining cost controls to achieve profitability.

[Final Takeaway]
Beyond Air demonstrated strong revenue growth in FY2025, driven by U.S. hospital contracts and strategic cost reductions. The company is poised for further growth with its LungFit PH2 device and international expansion plans. While challenges remain, particularly with FDA approval timelines and geopolitical factors, management's confidence in achieving revenue targets and expanding market presence is evident.