Good afternoon and welcome, everyone, to the Beyond Air Financial Results Call for the First Fiscal Quarter of 2022 Financial Results, ended June 30, 2021. At this time, participants are in listen-only mode. A question-and-answer session will follow the formal presentation. And now I would like to turn the call over to Maria Yonkoski, Head of Investor Relations at Beyond Air. Please, go ahead.

Thank you, Operator. Good afternoon, everyone and thank you for joining us. Today after market closed, we issued a press release announcing the First Fiscal Quarter 2022 Operational Highlights and Financial Results. A copy of this press release can be found on the Investor Relations page of our website. Before we begin, I would like to remind everyone that we will be making comments and various remarks about future expectations, plans and prospects, which constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Beyond Air cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated. We encourage everyone to review the company's filings with the Securities and Exchange Commission, including without limitation, the company's form 10-K, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Additionally, this conference call is being recorded and will be available for audio rebroadcast on our website, www.beyondair.net. Furthermore, the contents of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, August 10 2021. Beyond Air undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this call. Joining me on today's call are Steve Lisi, our Chairman and Chief Executive Officer; Duncan Fatkin, our Chief Commercial Officer; and Douglas Beck, our Chief Financial Officer. With that, I will turn the call over to Steve Lisi, our CEO. Steve?

Thanks, Maria. Good afternoon, everyone, and thank you for joining us today. On today's call, we will provide a brief overview of recent business highlights and preview upcoming milestones across our development pipeline. I will start by providing an update on the company's progress before handing the call over to our Chief Commercial Officer Duncan Fatkin to discuss our commercial launch preparations in greater detail. This will be followed by our Chief Financial Officer, Doug Beck who will provide a review of our financial results, and then we'll open up the call for your questions. Let me start by saying that the entire Beyond Air team continues to execute on our strategy and we remain on track with the time lines that we outlined during our public call on June 10 for the fiscal 2021 results. As you all know, we are awaiting FDA approval of our pending PMA application for the LungFit PH system to treat persistent pulmonary hypertension of the newborn or PPHN. LungFit PH is designed to offer hospitals a simple, safe, cost effective and convenient alternative to products that are currently available. We continue to have a collaborative report with FDA and anticipate approval at the end of the third quarter of calendar 2021 with the subsequent commercial launch in the fourth quarter. As we prepare for potential commercial launch of LungFit PH, we are excited by the opportunity to disrupt this market and create a future of tank-less inhaled nitric oxide delivery systems in the NICUs across the United States and eventually, globally. I will let Duncan discuss the specifics of this commercial planning in a moment. Let me turn to the progress we have made and our other ongoing programs and restate timing expectations. Starting with our viral lung infection program, which uses the…

Thanks, Steve, and good afternoon to our investors. I'm pleased to report that we are right on track in our preparations for the LungFit PH launch and we are of course extremely excited to present our solution -- if approved -- to the many hospitals that have been patiently waiting. As Steve has previously mentioned, we're preparing for a limited release phase for the first six to nine months post-launch. Although nitric oxide has been used as a standard of care for PPHN for the past 21 years, our rationale is that our generator is a novel device that will require proper training and support for hospital staff. We recognize the important role the respiratory therapists or RTs play in the NO space. These providers are the ones directly responsible for administering inhaled NO therapy to severely-ill patients and they will be the ones using our device. As such, you could think of RTs as the champions or gatekeepers of NO devices being adopted by hospitals. We have carefully designed our LungFit PH's user interface to facilitate an easy transition from any prior device that an RT is familiar with. Our team will work closely with these providers to ensure that we have optimized our logistics, customer service and product performance in the first limited release phase, so that we are confident in our ability to scale up, to meet the needs of a much broader range of customers in the planned second phase of our commercialization strategy. Our strategy for the initial phase will be to target a select number of hospitals that have Level 3 or level 4 NICUs and staff experienced with inhaled nitric oxide. These initial hospitals will not necessarily require an abundance of devices up front. However, they will have a sufficient volume of balance…

Thanks, Duncan. Here's a brief review of our financial results for the First Fiscal Quarter of 2022, which ended on June 30, 2021. Revenue for the first quarter ended June 30, 2021 was $0 as compared to $229,000 for the fiscal quarter ended June 30, 2020, all of which was licensing revenue. Research and development expenses for the fiscal quarter ended June 30, 2021 were $2.7 million compared to $4.3 million for the fiscal quarter ended June 30. 2020. General and administrative expenses for the fiscal quarter ended June 30, 2021, were $3.9 million compared to $2.5 million for the fiscal quarter ended June 30, 2020. The company had a net loss for the fiscal quarter ended June 30, 2021 of $6.7 million or $0.31 per share, compared to a net worth of $6.7 million or $0.41 per share for the fiscal quarter ended June 30, 2020. As of June 30, 2021, the company had cash, cash equivalents and restricted cash at $39.6 million. We believe that this cash is sufficient to fund operations well beyond the next 12 months, including the initial U.S. commercial launch phase of LungFit PH. I'll now hand it back to Steve.

Thanks, Doug. Operator, we are ready for Q&A.

And at this time, we will be conducting a question-and-answer session. [Operator Instructions] Our first question is from Greg Fraser with Truist. Please proceed with your question.

Thanks. Good afternoon, guys. On the FDA reviews, the timeline is intact. You mentioned the collaborative report with the agency. Has anything surprising come up in the review or if you get any questions that were outside of what you and the team expected? O has it been pretty straightforward so far?

Hey, Greg, thanks for the question. Appreciate it. It's been pretty straightforward. Remember that our team of engineers were the guys who designed and built and did all the work to get approval of the first-ever system called the INOvent and several versions after the INOvent, which was the INOmax DSIR. So, they've been doing nitric oxide since the early mid-90s. So, nothing in this space really surprises that team.

Got it and have the inspection boxes been checked yet? Or is that still to come?

I'm sorry, say that again? The inspection boxes?

Have the boxes been checked on inspections -- have the inspections happened?

No, the inspections haven't happened. Usually they're right at the end.

Yes, okay. And then on LungFit Pro, how was you're thinking involved on which path to pursue, if it has between AVP [ph] and bronchiolitis with COVID cases ramping up and the potential for COVID to remain a problem for some time. To me, there seems clear but on the other hand, RSV cases are ramping up in a big way. And RSV will probably always be a problem. I'm curious where you see at this point the most unmet need in opportunity?

Well, it's a great question because I can go either way. I mean, we want to save the babies, so that's really what you want to do. But it seems like this pandemic is never ending and it's really the people who are suffering there are the adults and the elderly. So, I think that we're going to take a look at the full package we have and obviously, we have data from both the bronchiolitis and pneumonia, as well as our preclinical data and some other work we're doing. So, we'll make a decision in the next few months which way we're going to go and I think the direction we're going to go and obviously dictated by our data set is going to be what we believe we can get agreement with FDA on to move forward into a pivotal study. I think that's the most important thing, is to move forward with one of them. If we try to go with one that's not as strong in terms of the data set because maybe it's a bigger market or what have you, then that would be a mistake on our part. So, we're going to pick the one that we think has the best chance of getting agreement with FDA on a pivotal trial design and moving forward in the fourth quarter of calendar 2022. We just don't know yet. We're still gathering over.

Understood. Thanks for taking the questions.

Thanks, Greg.

And our next question is from Suraj Kalia with Oppenheimer. Please proceed with your question.

Good afternoon, everyone. Can you hear me all right?

Yes, we can, Suraj.

So, Steve, if the PMA approvals for PPHN is, let's say, by the end of this month, so the first of September, is it fair to say that the labeling discussions have already happened?

Well, I don't think it's the approvals coming at the end of August. I think we've been saying September. So, I wouldn't change that that viewpoint in any way. I would still look at the end of September as the timing. And I think that with respect to the label, there's no ambiguity on the label in our opinion. The label is what's out there now. I think all three U.S. players right now has the exact same label. So, I don't think there's going to be any difference here one way or the other on the label. I think it's pretty well-known and there's nothing from our side that would change that.

But have you all had labeling discussions with the FDA?

No.

Okay.

Not sure it's appropriate at this moment in time to have those discussions anyway.

One of the questions for Duncan. Duncan, you mentioned 850 NICUs, and if I heard you correctly, about a four-year ramp -- and please correct me if I'm wrong. So, help us understand the cadence of targeting if the Pareto [ph] rule still applies in this case, how you all are thinking about targeting so that we have some goal posts we can look at as post-approval and after commercial launch. Thank you for taking my questions.

Yes, no problem, Suraj. So, to be clear, what I mentioned is that the contracts are typically around one to three years. And so, within four years, we expect to have gone through or had the opportunity talking to any hospital in the U.S. about their contract. It wasn't a reflection of a specific time that it will take for us to get around. As far as the phase is concerned, we've been clear that we're going to focus in the first six to nine months on something around up to a dozen locations or hospitals and we're going to focus on the customer service logistics and service and maintenance questions that you would expect, to have that ironed out before going into the next phase. The exact timing of that ramp up and the speed with which we increase organization and revenue, it remains to be seen because we're obviously going to be dealing with all the questions that come back and we think it's going to be fast, but I can't tell you exactly what those specific metrics are going to be at this time.

Thank you.

[Operator Instructions] Our next question is from Matt Kaplan with Ladenburg. Please proceed with your question.

Hi. Good afternoon, guys. I guess first as you're nearing your first approval with LungFit PH, can you talk about what your strategy is for potential re-expanding the label for the LungFit PH after approval?

We will give you that nice save there, Matt. All right? LungFit PH.

Yes. So, PH.

I'll let Doug talk the labor expansion.

Thank you.

Sure, Matt. Yes, so as soon as we get our approval, we are going to file for the expanded indication for cardiac.

Okay.

So, this could take -- obviously, there's a range of times this normally takes, but certainly middle of next year is when we would expect to get that expansion. And it's really a pretty straightforward piece of work from our perspective. So, it doesn't require any additional clinical work, et cetera. So, it's just the dossier and we'll submit that as soon as we get the initial approval.

Great. And maybe, Duncan, for you. Can you talk a little bit about the business model for LungFit PH and how to think about kind of the razor and the razor blades and the sales of both?

Yes, I appreciate that. So, I don't want to get into too much detail about it. Because obviously, it's a competitive advantage for us to kind of keep that fairly close to our chest. But I will say that we do have the Smart Filter that I mentioned. It's a 12-hour time stamp, if you like, and that allows us to measure how much people are using our system. And it actually gives us a lot of flexibility. So, we're going to focus on the simplicity of our system and the flexibility of the business model. There are a number of different ways we can approach this and we think people will really appreciate that. We're certainly not expecting to have to compete on price and we'll focus on the broader value proposition which is around eliminating the cylinders, optimizing the workflow and ultimately increasing access to nitric oxide, which is what we're trying to deliver for this hospital.

Okay, very good. Thanks. Fair enough. And then, Steve, for the ones that LungFit Go NTM program, can you tell us a little bit about what to expect or look for in the interim data that's coming in the fourth quarter from the ongoing study?

Sure. I think the bacterial load data won't be available. I think that's the one thing that won't be there in that interim, but quality of life, physical function, safety and tolerability, all those data points will be reported on. I think it's important to also note the concentration that the patients are on. We start them in 150 parts per million and we try to titrate them from 150 to 200, then to 250. Then obviously, the more patients on 250, the better. I think that's really what we're looking at from the early days. Remember, just as a reminder, these patients are treating themselves at home with our LungFit Go system for a little more than 11 weeks. First couple of days would obviously be training and titration phase at the hospital.

Okay, that's helpful. Thank you. And then last question in terms of I guess kind of under-recognized program, your oncology, solid tumor, ultra-high concentration NO program. Can you give us a little bit more color in terms of what you're thinking of in terms of the first clinical study that you're on track to launch I guess, late this year or early next year?

Yes. This first Phase 1 will be two steps. Phase 1A/B [ph] are no different than most other companies here. The first one will be -- I don't want to say all comers [ph], but it will be multiple types of solid tumors we'll be looking for safety. I think that's important thing in this first piece of the Phase 1 study. So, that's really it. Can we deliver this safely in humans as we've done in rodents? There are obviously, Matt, as you know, we'll be looking at several biomarkers to be sure that there are at least the hints of efficacy that we expect to see in those in that first study with these biomarkers. But again, it would be more of the Phase 1B study that would have a direct endpoint of efficacy. We'll get some good biomarker data in that first study for sure.

Great. Thanks for taking the questions.

Thanks, Matt.

And our next question is from Yale Jen with Laidlaw & Company. Please proceed with your questions.

Good afternoon, Steve, and thanks for taking the questions. So, just the two quick ones. The first one is for the LungFit Pro study. Do you have any non-COVID patients so far in this study?

Hey, Yale, how are you?

Good.

Hey, how are you? So, in the current MO [ph] study, all of the patients to-date our SARS-CoV-2 or COVID-19 patients.

Okay. And maybe just another follow-up question. Given that you feel comfortable that the approval may come end of this September -- because I'd be referring back to earlier question, that whether you already have the inspection date set to have that? Or just still to be determined?

Yale, I wish FDA would give us a nice couple of months lead time and when they're coming in to inspect us, but usually their MO is to just kind of call you up and say, 'Hey, we'll come in next week' or something. So, it's usually a very short notice that they're coming. So, at least in my experience, in my team's experience, that's something that's set up well in advance. Direct-to-answer to your question is no, they're not scheduled yet. But I wouldn't expect it to be scheduled at this moment in time. I say that it's going to be a couple more weeks before they make that phone call to us.

Okay, great. Thanks and again, congrats for reaching the one-yard line and probably go beyond that very soon.

Thanks, Yale.

And we have reached the end of the question-and-answer session. I'll now turn the call over to the Management for any closing remarks.

Thanks, everybody, for taking the time today. We'll talk to you next quarter. Thank you.

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.