AIRTP Air T Inc

^[1]

(1,439)

(1,433)

(6)

Adjustment to fair value of redeemable non-controlling interest

(529)

926

Unrealized gain (loss) on interest rate swaps, net of tax

475

Reclassification of interest rate swaps into earnings

Balance at the end (in shares) at Jun. 30, 2022

3,023,000

Balance at the end at Jun. 30, 2022

25,246

$ 756

$ (3,002)

472

26,222

(300)

1,098

Balance at the end (in shares) at Jun. 30, 2022

156,000

Balance at the beginning (in shares) at Mar. 31, 2022

3,023,000

Balance at the beginning at Mar. 31, 2022

25,717

$ 756

$ (3,002)

393

26,729

(263)

1,104

Balance at the beginning (in shares) at Mar. 31, 2022

156,000

Reclassification of interest rate swaps into earnings

(360)

Balance at the end at Dec. 31, 2022

3,026,000

22,452

$ 757

$ (3,995)

650

23,153

800

1,087

Balance at the beginning (in shares) at Jun. 30, 2022

204,000

3,023,000

Balance at the beginning at Jun. 30, 2022

25,246

$ 756

$ (3,002)

472

26,222

(300)

1,098

Balance at the beginning (in shares) at Jun. 30, 2022

156,000

Repurchase of common stock (in shares)

^[1]

(1,236)

(1,232)

(4)

19,000

Repurchase of common stock

(351)

$ (351)

Exercises of stock options (in shares)

3,000

Exercise of stock options

$ 1

Adjustment to fair value of redeemable non-controlling interest

(606)

(188)

Unrealized gain (loss) on interest rate swaps, net of tax

957

Reclassification of interest rate swaps into earnings

Balance at the end (in shares) at Sep. 30, 2022

3,026,000

Balance at the end at Sep. 30, 2022

23,939

$ 757

$ (3,353)

571

24,802

1,094

Balance at the end (in shares) at Sep. 30, 2022

175,000

Repurchase of common stock (in shares)

^[1]

(597)

(590)

(7)

29,000

Repurchase of common stock

(642)

$ (642)

Adjustment to fair value of redeemable non-controlling interest

775

(1,059)

Unrealized gain (loss) on interest rate swaps, net of tax

(61)

Reclassification of interest rate swaps into earnings

Balance at the end at Dec. 31, 2022

3,026,000

$ 22,452

$ 757

$ (3,995)

650

23,153

800

1,087

Balance at the beginning (in shares) at Mar. 31, 2023

204,000

2,818,374

3,027,000

Balance at the beginning at Mar. 31, 2023

$ 12,982

$ 757

$ (4,083)

728

13,686

816

1,078

Balance at the beginning (in shares) at Mar. 31, 2023

208,121

208,000

Repurchase of common stock (in shares)

^[1]

$ (540)

(531)

(9)

1,000

Repurchase of common stock

(15)

$ (15)

Adjustment to fair value of redeemable non-controlling interest

(65)

134

Unrealized gain (loss) on interest rate swaps, net of tax

Reclassification of interest rate swaps into earnings

(192)

Balance at the end (in shares) at Jun. 30, 2023

3,027,000

Balance at the end at Jun. 30, 2023

$ 12,407

$ 757

$ (4,098)

807

13,289

583

1,069

Balance at the end (in shares) at Jun. 30, 2023

209,000

Balance at the beginning (in shares) at Mar. 31, 2023

2,818,374

3,027,000

Balance at the beginning at Mar. 31, 2023

$ 12,982

$ 757

$ (4,083)

728

13,686

816

1,078

Balance at the beginning (in shares) at Mar. 31, 2023

208,121

208,000

Reclassification of interest rate swaps into earnings

$ (19)

$ (568)

Balance at the end at Dec. 31, 2023

2,821,504

3,030,000

$ 7,954

$ 758

$ (4,098)

990

9,014

231

1,059

Balance at the beginning (in shares) at Jun. 30, 2023

208,741

209,000

3,027,000

Balance at the beginning at Jun. 30, 2023

$ 12,407

$ 757

$ (4,098)

807

13,289

583

1,069

Balance at the beginning (in shares) at Jun. 30, 2023

209,000

Exercises of stock options (in shares)

^[1]

(1,628)

(1,609)

(19)

3,000

Exercise of stock options

$ 1

Adjustment to fair value of redeemable non-controlling interest

(170)

412

Unrealized gain (loss) on interest rate swaps, net of tax

Reclassification of interest rate swaps into earnings

(188)

Balance at the end (in shares) at Sep. 30, 2023

3,030,000

Balance at the end at Sep. 30, 2023

10,954

$ 758

$ (4,098)

911

12,092

241

1,050

Balance at the end (in shares) at Sep. 30, 2023

209,000

^[1]

(2,970)

(2,979)

Adjustment to fair value of redeemable non-controlling interest

216

(99)

Unrealized gain (loss) on interest rate swaps, net of tax

(38)

Reclassification of interest rate swaps into earnings

$ (188)

(188)

Balance at the end at Dec. 31, 2023

2,821,504

3,030,000

$ 7,954

$ 758

$ (4,098)

$ 990

$ 9,014

$ 231

$ 1,059

Business Combination and Asset Acquisition [Abstract]

208,741

209,000

[1]	Excludes amount attributable to redeemable non-controlling interests in Contrail Aviation Support, LLC ("Contrail") and Shanwick B.V. ("Shanwick")

Financial Statement Presentation	9 Months Ended
Financial Statement Presentation	Dec. 31, 2023
Accounting Policies [Abstract]
Financial Statement Presentation	Financial Statement Presentation The condensed consolidated financial statements of Air T, Inc. (“Air T”, the “Company”, “we”, “us” or “our”) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results for the periods presented have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended March 31, 2023. The results of operations for the period ended December 31, 2023 are not necessarily indicative of the operating results for the full year. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liquidity The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As previously reported in the Company's September 30, 2023 Form 10-Q, a condition existed that raised substantial doubt about its ability to continue as a going concern, for which management's plans alleviated such condition. As of the issuance of this report, management has executed their plans and such condition no longer exists. As described in Note 12, the Company successfully raised $7.3 million of additional funds via sales of our trust preferred securities through the Company's at-the-market offering that commenced on October 18, 2023 and through various private placements. In addition, the Company also implemented cost reduction measures and liquidated select investments as well as reduced capital expenditures. The Company believes they have sufficient cash on hand and available liquidity, to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04- Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In December 2022, the FASB issued ASU 2022-06- Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this Update defer the implementation deadline of Topic 848 from December 31, 2022, to December 31, 2024. The Company completed the process of converting its material LIBOR-based contracts, hedging relationships, and other transactions to other reference rates as of September 30, 2023. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07- Segment Reporting (Topic 848): Improvements to Reportable Segment Disclosures. The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses utilized by the chief operating decision maker for a company along with details about who the chief operating decision maker is and their title. The Update additionally requires that all annual disclosures under Topic 280 be included in interim periods financial statements, clarifies when an entity can disclose multiple segment measures of profit or loss, and provides new segment disclosure requirements for entities with a single reportable segment. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this amendment on its condensed consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09- Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update require the addition of specific categories to be disclosed in the rate reconciliation if they meet a quantitative threshold, disclosure of disaggregated income taxes paid to federal, state, and foreign jurisdictions, and disclosure of income or loss from continuing operations disaggregated by federal, state, and foreign jurisdictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this amendment on its consolidated financial statements and disclosures.

Acquisitions

9 Months Ended

Dec. 31, 2023

Acquisitions

Worldwide Aviation Services, Inc.

The acquisition date's fair value of the consideration is summarized in the table below (in thousands):


	January 31, 2023
Cash consideration	$	1,628
Seller's Note	1,370
Total consideration	$	2,998


	January 31, 2023
ASSETS
Accounts receivable	$	1,037
Inventory	517
Other current assets	97
Property, plant and equipment, net	403
Intangible -Trade Name	342
Intangible - Non-competition Agreement	19
Intangible - Customer Relationships	683
Other assets	20
Total assets	$	3,118

LIABILITIES
Accounts payable	61
Accrued expenses and deferred revenue	635
Total liabilities	$	696

Net assets acquired	$	2,422

Consideration paid	2,998
Less: Cash acquired	(500)
Less: Net assets acquired	(2,422)
Goodwill	$	76


	Income Statement Post-Acquisition
Revenue	$	929
Cost of Sales	676
Operating Expenses	425
Operating Loss	(172)
Non-operating expense	(22)
Net loss	$	(194)

Pro forma financial information is not presented as the results are not material to the Company’s consolidated financial statements.

Revenue Recognition

9 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The following is a description of the Company’s performance obligations:


Type of Revenue			Nature, Timing of Satisfaction of Performance Obligations, and Significant Payment Terms
Product Sales			The Company generates revenue from sales of various distinct products such as parts, aircraft equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation. The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price less an estimate of variable consideration (such as rebates, discounts or prompt payment discounts). The Company estimates these amounts based on the expected incentive amount to be provided to customers and reduces revenue accordingly. Performance obligations are short-term in nature and customers are typically billed upon transfer of control. The Company records all shipping and handling fees billed to customers as revenue. The terms and conditions of the customer purchase orders or contracts are dictated by either the Company’s standard terms and conditions or by a master service agreement or by the contract.
Support Services			The Company provides a variety of support services such as aircraft maintenance and short-term repair services to its customers. Additionally, the Company operates certain aircraft routes on behalf of FedEx. A performance obligation is created when the Company agrees to provide a particular service to a customer. For each service, the Company recognizes revenues over time as the customer simultaneously receives the benefits provided by the Company's performance. This revenue recognition can vary from when the Company has a right to invoice to the output or input method depending on the structure of the contract and management’s analysis. For repair-type services, the Company records revenue over-time based on an input method of costs incurred to total estimated costs. The Company believes this is appropriate as the Company is performing labor hours and installing parts to enhance an asset that the customer controls. The vast majority of repair-services are short term in nature and are typically billed upon completion of the service. Some of the Company’s contracts contain a promise to stand ready as the Company is obligated to perform certain maintenance or administrative services. For most of these contracts, the Company applies the 'as invoiced' practical expedient as the Company has a right to consideration from the customer in an amount that corresponds directly with the value of the entity's performance completed to date. A small number of contracts are accounted for as a series and recognized equal to the amount of consideration the Company is entitled to less an estimate of variable consideration (typically rebates). These services are typically ongoing and are generally billed on a monthly basis.

The following table summarizes disaggregated revenues by type (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Product Sales
Air Cargo	$	10,050	$	6,416	$	28,428	$	20,303
Ground equipment sales	8,080		15,909		31,556		39,125
Commercial jet engines and parts	21,381		18,515		81,535		54,545
Corporate and other	153		112		775		247
Support Services
Air Cargo	18,929		15,399		56,378		43,979
Ground equipment sales	223		96		474		396
Commercial jet engines and parts	2,533		2,428		8,393		6,958
Corporate and other	1,478		1,157		3,967		3,155
Leasing Revenue

Ground equipment sales	24		42		58		115
Commercial jet engines and parts	12		729		35		1,939
Corporate and other	397		353		1,209		1,223
Other
Air Cargo	39		16		138		182
Ground equipment sales	114		100		386		345
Commercial jet engines and parts	213		64		500		135
Corporate and other	130		60		322		299

Total	$	63,756	$	61,396	$	214,154	$	172,946

Contract Balances and Costs


	Outstanding contract liabilities		Outstanding contract liabilities as of April 1, 2023 Recognized as Revenue
As of December 31, 2023	$	3,389
As of April 1, 2023	$	5,000
For the nine months ended December 31, 2023			$	4,433

Accrued Expenses and Other

9 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses and Other


(In thousands)	December 31, 2023		March 31, 2023

Salaries, wages and related items	$	5,707	$	4,748
Profit sharing and bonus	1,379		1,672
Other Deposits	794		2,560
Other	4,149		4,153
Total	$	12,029	$	13,133

Income Taxes	9 Months Ended
Income Taxes	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the three-month period ended December 31, 2023, the Company recorded $0.2 million in income tax expense at an effective rate ("ETR") of (7.8)%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended December 31, 2023 were the valuation allowance related to the Company’s U.S. consolidated group, Delphax Technologies, Inc. (“DTI”) and Landing Gear Support Services PTE LTD (“LGSS”), Delphax Solutions, Inc. ("DSI") and BCCM Advisors (Kenya) Limited ("BCCM Kenya"), and the foreign rate differentials for Air T’s operations located in the Netherlands and Puerto Rico. During the three-month period ended December 31, 2022, the Company recorded income tax benefit of $0.2 million at an ETR of 325.0%. The Company records income taxes using an estimated tax rate for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended December 31, 2022 were the change in valuation allowance related to the Company's subsidiaries in the corporate and other segment, DSI and DTI, and other capital losses, the estimated benefit for the exclusion of income for the Company's captive insurance company subsidiary ("SAIC") under Section 831(b), the foreign rate differentials between the federal and foreign tax rates for Air T's ownership of foreign operations in Puerto Rico, the Netherlands, and Singapore, and the exclusion from the tax provision of the minority owned portion of the pretax income of Contrail. During the nine-month period ended December 31, 2023, the Company recorded $0.9 million in income tax expense at an ETR of (29.4)%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the nine-month period ended December 31, 2023, were the valuation allowance related to the Company’s U.S. consolidated group, DTI, LGSS, DSI and BCCM Kenya, and the foreign rate differentials for Air T’s operations located in the Netherlands and Puerto Rico. During the nine-month period ended December 31, 2022, the Company recorded income tax benefit of $0.5 million at an ETR of 20.9%. The Company records income taxes using an estimated annual effective tax rate for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21% and the Company's effective tax rate for the nine-month period ended December 31, 2022 were the change in valuation allowance related to DSI and DTI and other capital losses, the estimated benefit for the exclusion of income for SAIC under Section 831(b), the foreign rate differentials between the federal and foreign tax rates for Air T's ownership of foreign operations in Puerto Rico, the Netherlands, and Singapore, and the exclusion from the tax provision of the minority owned portion of the pretax income of Contrail.

Net Earnings (Loss) Per Share

9 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Earnings (Loss) Per Share

The computation of basic and diluted earnings per common share is as follows (in thousands, except for per share figures):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Net (loss) income	$	(2,109)	$	108	$	(3,744)	$	(2,029)
Net income attributable to non-controlling interests	(870)		(698)		(1375)		(1,226)
Net loss attributable to Air T, Inc. Stockholders	$	(2,979)	$	(590)	$	(5,119)	$	(3,255)
Loss per share:
Basic	$	(1.06)	$	(0.21)	$	(1.82)	$	(1.14)
Diluted	$	(1.06)	$	(0.21)	$	(1.82)	$	(1.14)
Antidilutive shares excluded from computation of loss per share	—		5		—		5

Weighted Average Shares Outstanding:
Basic	2,822		2,836		2,820		2,855
Diluted	2,822		2,836		2,820		2,855

Intangible Assets and Goodwill

9 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible assets as of December 31, 2023 and March 31, 2023 consisted of the following (in thousands):


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Purchased software	$	623	$	(484)	$	139
Internally developed software	3,711		(720)		2,991
In-place lease and other intangibles	1,094		(318)		776
Customer relationships	8,162		(1,302)		6,860
Patents	1,112		(1,108)		4
Other	1,768		(1,209)		559
	16,470		(5,141)		11,329
In-process software	130				130
Intangible assets, total	$	16,600	$	(5,141)	$	11,459


	March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Purchased software	$	544	$	(433)	$	111
Internally developed software	3,672		(465)		3,207
In-place lease and other intangibles	1,094		(229)		865
Customer relationships	8,050		(851)		7,199
Patents	1,112		(1,105)		7
Other	1,782		(1,108)		674
	16,254		(4,191)		12,063
In-process software	40		—		40
Intangible assets, total	$	16,294	$	(4,191)	$	12,103


(In thousands)
Year ending March 31,	Amortization
2024 (excluding the nine months ended December 31, 2023)	$	310
2025	1,201
2026	1,118
2027	1,045
2028	990
2029	982
Thereafter	5,683
	$	11,329

The carrying amount of goodwill as of December 31, 2023 and March 31, 2023 was $10.6 million. There was no impairment on goodwill during the nine months ended December 31, 2023.

Investments in Securities and Derivative Instruments	9 Months Ended
Investments in Securities and Derivative Instruments	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Investments in Securities and Derivative Instruments	Investments in Securities and Derivative Instruments As part of the Company’s interest rate risk management strategy, the Company, from time to time, uses derivative instruments to minimize significant unanticipated earnings fluctuations that may arise from rising variable interest rate costs associated with existing borrowings (Air T Term Note A and Term Note D). To meet these objectives, the Company entered into interest rate swaps with notional amounts consistent with the outstanding debt to provide a fixed rate of 4.56% and 5.09%, respectively, on Term Notes A and D. The swaps mature in January 2028. On August 31, 2021, Air T and Minnesota Bank & Trust ("MBT") refinanced Term Note A and fixed its interest rate at 3.42%. As a result of this refinancing, the Company determined that the interest rate swap on Term Note A was no longer an effective hedge. The Company will amortize the fair value of the interest-rate swap contract included in accumulated other comprehensive income (loss) associated with Term Note A at the time of de-designation into earnings over the remainder of its term. In addition, any changes in the fair value of Term Note A's swap after August 31, 2021 are recognized directly into earnings. The remaining swap contract associated with Term Note D is designated as an effective cash flow hedging instrument in accordance with ASC 815. On January 7, 2022, Contrail completed an interest rate swap transaction with Old National Bank ("ONB") with respect to the $43.6 million loan made to Contrail in November 2020 pursuant to the Main Street Priority Loan Facility as established by the U.S. Federal Reserve ("Contrail - Term Note G"). The purpose of the floating-to-fixed interest rate swap transaction was to effectively fix the loan interest rate at 4.68%. As of February 24, 2022, this swap contract has been designated as a cash flow hedging instrument and qualified as an effective hedge in accordance with ASC 815. During the period between January 7, 2022 and February 24, 2022, the Company recorded a loss of approximately $0.1 million in the consolidated statement of income (loss) due to the changes in the fair value of the instrument prior to the designation and qualification of this instrument as an effective hedge. After it was deemed an effective hedge, the Company recorded changes in the fair value of the instrument in the consolidated statement of comprehensive income (loss). On March 30, 2023, Contrail made a prepayment of $6.7 million on Contrail - Term Note G. As a result of this prepayment, the Company determined that the interest rate swap on Contrail - Term Note G was no longer an effective hedge. The Company will amortize the fair value of the interest-rate swap contract included in accumulated other comprehensive income (loss) associated with Contrail - Term Note G at the time of de-designation into earnings over the remainder of its term. In addition, any changes in the fair value of Contrail - Term Note G's swap after March 30, 2023 are recognized directly into earnings. For the swaps related to Air T Term Note D, the effective portion of changes in the fair value on this instrument is recorded in other comprehensive income (loss) and is reclassified into the consolidated statement of income (loss) as interest expense in the same period in which the underlying hedged transaction affects earnings. During the three and nine months ended December 31, 2023, the Company recorded a loss of approximately $38.0 thousand and a gain of $2.0 thousand, net of tax, respectively. During the three and nine months ended December 31, 2022, the Company recorded a loss of approximately $0.1 million and a gain of $1.4 million, net of tax, respectively, with prior year's gain inclusive of Contrail - Term Note G due to its effective hedge designation at the time. These gains and losses are included in the condensed consolidated statement of comprehensive income (loss) for changes in the fair value of these instruments. The interest rate swaps are considered Level 2 fair value measurements. As of December 31, 2023 and March 31, 2023, the fair value of these interest-rate swap contracts was an asset of $1.8 million and $2.4 million, respectively, which is included within other assets in the condensed consolidated balance sheets. The Company also invests in exchange-traded marketable securities and accounts for that activity in accordance with ASC 321, Investments- Equity Securities. Marketable equity securities are carried at fair value, with changes in fair market value included in the determination of net income. The fair market value of marketable equity securities is determined based on quoted market prices in active markets and are therefore, considered Level 1 fair value measurements. During the three months ended December 31, 2023, the Company had a gross unrealized gain aggregating to $0.5 million and no gross unrealized loss. During the nine months ended December 31, 2023, the Company had a gross unrealized gain aggregating to $1.4 million and a gross unrealized loss aggregating to $1.8 million. During the three months ended December 31, 2022, the Company had a gross unrealized gain aggregating to $0.3 million and a gross unrealized loss aggregating to $0.5 million. During the nine months ended December 31, 2022, the Company had a gross unrealized gain aggregating to $0.3 million and a gross unrealized loss aggregating to $0.8 million. These unrealized gains and losses are included in other income (loss) on the condensed consolidated statement of income (loss).

Equity Method Investments

9 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Summarized unaudited financial information for the Company's equity method investees for the three and nine months ended September 30, 2023 and 2022 is as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Revenue	$	34,365	$	37,532	$	133,427	$	111,522
Gross Profit	2,746		4,045		18,076		13,210
Operating (loss) income	(124)		13,382		9,100		17,172
Net income	2,050		13,375		10,439		16,180
Net income attributable to Air T, Inc. stockholders	$	499	$	2,183	$	2,295	$	2,926

Inventories

9 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in thousands):


	December 31, 2023		March 31, 2023
Overnight air cargo:
Finished goods	$	931	$	546
Ground equipment manufacturing:
Raw materials	5,921		4,589
Work in process	2,997		153
Finished goods	2,344		6,976
Corporate and other:
Raw materials	1,118		794
Finished goods	725		726
Commercial jet engines and parts:
Whole engines available for sale or tear-down	—		10,141
Parts	43,693		50,813
Total inventories	57,729		74,738
Reserves	(3,842)		(3,613)
Total inventories, net of reserves	$	53,887	$	71,125

Leases

9 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

The Company has elected to combine lease and non-lease components as a single component and not to recognize leases on the balance sheet with an initial term of one year or less.

The components of lease cost for the three and nine months ended December 31, 2023 and 2022 are as follows (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Operating lease cost	$	473	$	537	$	1,897	$	1,529
Short-term lease cost	245		193		628		564
Variable lease cost	247		140		610		415
Total lease cost	$	965	$	870	$	3,135	$	2,508

Amounts reported in the consolidated balance sheets for leases where we are the lessee as of December 31, 2023 and March 31, 2023 were as follows (in thousands):


	December 31, 2023			March 31, 2023
Operating leases
Operating lease ROU assets	$	11,893		$	11,666
Operating lease liabilities	$	12,773		$	12,435

Weighted-average remaining lease term
Operating leases	12 years			12 years, 10 months

Weighted-average discount rate
Operating leases	5.08		%	4.95		%

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of December 31, 2023 are as follows (in thousands):


	Operating Leases
2024 (excluding the nine months ended December 31, 2023)	$	640
2025	2,344
2026	2,127
2027	1,979
2028	1,438
2029	750
Thereafter	8,225
Total undiscounted lease payments	17,503
Interest	(3,840)
Discount	(890)
Total lease liabilities	$	12,773

Financing Arrangements

9 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Financing Arrangements

Borrowings of the Company and its subsidiaries are summarized below at December 31, 2023 and March 31, 2023, respectively.

3.The unused commitment fee on the revolving credit facility will increase from 0.11% to 0.15%; and,

4.The covenant restricting the Company’s use of funds for “Other Investments” was revised to limit the Company to $5.0 million of “Other Investments” per year.

The following table provides certain information about the current financing arrangements of the Company and its subsidiaries as of December 31, 2023:


(In Thousands)	December 31, 2023		March 31, 2023		Maturity Date	Interest Rate	Unused commitments at December 31, 2023
Air T Debt
Revolver - MBT	$	6,492	$	8,742	8/31/2024	SOFR + range of 2.25% - 3.25%	$	10,508
Term Note A - MBT	7,160		7,762		8/31/2031	3.42%
Term Note B - MBT	2,528		2,740		8/31/2031	3.42%
Term Note D - MBT	1,287		1,338		1/1/2028	1-month LIBOR + 2.00%
Term Note E - MBT	—		800		6/25/2025	Greater of LIBOR + 1.50% or 2.50%
Term Note F - MBT	833		983		1/31/2028	Greater of 6.00% or Prime + 1.00%
Debt - Trust Preferred Securities	32,662		25,598		6/7/2049	8.00%
Total	50,962		47,963

AirCo 1 Debt
Term Loan - PSB	5,434		6,393		12/11/2025	3-month SOFR + 3.26%
Total	5,434		6,393

Jet Yard Debt
Term Loan - MBT	1,776		1,844		8/31/2031	4.14%
Total	1,776		1,844

Contrail Debt
Revolver - ONB	—		12,441		11/24/2025	1-month SOFR + 3.56%	$	25,000
Term Loan G - ONB	24,918		38,180		11/24/2025	1-month SOFR + 3.11%
Total	24,918		50,621

Delphax Solutions Debt
Canadian Emergency Business Account Loan	30		30		12/31/2025	5.00%
Total	30		30

Wolfe Lake Debt
Term Loan - Bridgewater	9,393		9,586		12/2/2031	3.65%
Total	9,393		9,586

Air T Acquisition 22.1
Term Loan - Bridgewater	4,500		4,500		2/8/2027	4.00%
Term Loan A - ING	2,155		2,610		2/1/2027	3.50%
Term Loan B - ING	1,105		1,088		5/1/2027	4.00%
Total	7,760		8,198

WASI Debt
Promissory Note - Seller's Note	958		1,279		1/1/2026	6.00%
Total	958		1,279

Total Debt	101,231		125,914

Unamortized Premiums and Debt Issuance Costs	(445)		(829)
Total Debt, net	$	100,786	$	125,085

At December 31, 2023, our contractual financing obligations, including payments due by period, are as follows (in thousands):


Due by	Amount
December 31, 2024	$	17,367
December 31, 2025	26,335
December 31, 2026	3,075
December 31, 2027	7,219
December 31, 2028	1,755
Thereafter	45,480
	101,231
Unamortized Premiums and Debt Issuance Costs	(445)
	$	100,786

The amount outstanding on the Company's Debt - Trust Preferred Securities was $32.7 million as of December 31, 2023.

Geographical Information

9 Months Ended

Dec. 31, 2023

Geographical Information


	December 31, 2023		March 31, 2023
United States	$	20,845	$	21,433
Foreign	51		89
Total tangible long-lived assets, net	$	20,896	$	21,522

The net book value of tangible long-lived assets located within each individual foreign country at December 31, 2023 and March 31, 2023 is listed below (in thousands):


	December 31, 2023		March 31, 2023
The Netherlands	$	43	$	42
Other	8		47
Total tangible long-lived assets, net	$	51	$	89

Total revenue, in and outside the United States, is summarized in the following table for the nine months ended December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023		December 31, 2022
United States	$	182,334	$	143,433
Foreign	31,820		29,513
Total revenue	$	214,154	$	172,946

Segment Information

9 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Segment Information


(In Thousands)	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Operating Revenues by Segment:
Overnight Air Cargo
Domestic	$	28,818	$	21,831	$	84,054	$	64,464
International	200		—		890		—
Total Overnight Air Cargo	29,018		21,831		84,944		64,464
Ground Equipment Sales:
Domestic	8,178		16,009		28,709		34,830
International	263		138		3,765		5,151
Total Ground Equipment Sales	8,441		16,147		32,474		39,981
Commercial Jet Engines and Parts:
Domestic	15,967		13,704		66,698		42,047
International	8,172		8,032		23,765		21,530
Total Commercial Jet Engines and Parts	24,139		21,736		90,463		63,577
Corporate and Other:
Domestic	935		565		2,873		2,092
International	1,223		1,117		3,400		2,832
Total Corporate and Other	2,158		1,682		6,273		4,924
Total	63,756		61,396		214,154		172,946

Operating Income (Loss):
Overnight Air Cargo	1,594		1,009		5,568		2,931
Ground Equipment Sales	(522)		1,093		(619)		3,122
Commercial Jet Engines and Parts	(627)		733		2,002		3,603
Corporate and Other	(2,053)		(2,700)		(7,140)		(8,509)
Total	(1,608)		135		(189)		1,147

Capital Expenditures:
Overnight Air Cargo	60		37		263		228
Ground Equipment Sales	24		16		82		32
Commercial Jet Engines and Parts	24		132		166		484
Corporate and Other	12		60		167		293
Total	120		245		678		1,037

Depreciation and Amortization:
Overnight Air Cargo	95		22		269		64
Ground Equipment Sales	37		35		107		130
Commercial Jet Engines and Parts	185		721		565		1,717
Corporate and Other	382		319		1,147		1,073
Total	$	699	$	1,097	$	2,088	$	2,984

The table below provides a reconciliation of operating income (loss) to Adjusted EBITDA for the nine months ended December 31, 2023 and 2022 (in thousands):


	Nine Months Ended December 31, 2023
		Total
Operating loss		$	(189)
Depreciation and amortization (excluding leased engines depreciation)		2,088
Asset impairment, restructuring or impairment charges		326
Gain on sale of property and equipment		(7)
TruPs issuance expenses		277
Adjusted EBITDA		$	2,495


	Nine Months Ended December 31, 2022
		Total
Operating income		$	1,147
Depreciation and amortization (excluding leased engines depreciation)		1,810
Asset impairment, restructuring or impairment charges		2,174
Gain on sale of property and equipment		(2)
TruPs issuance expenses		38
Adjusted EBITDA		$	5,167

Commitments and Contingencies

9 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Contrail Put/Call Option

Contrail Asset Management, LLC and CJVII, LLC

Shanwick Put/Call Option


	Shanwick RNCI
Beginning Balance as of April 1, 2023	$	4,738
Contribution from non-controlling members	—
Distribution to non-controlling members	(326)
Net income attributable to non-controlling interests	326
Redemption value adjustments	782
Ending Balance as of December 31, 2023	$	5,520

2020 Omnibus Stock and Incentive Plan

Guarantees	9 Months Ended
Guarantees	Dec. 31, 2023
Guarantees and Product Warranties [Abstract]
Guarantees	Guarantees Financial Guarantees Our financial guarantees consist of debt obligations of certain CJVII Series. Expiration dates vary through 2028, and guarantees will terminate on payment and/or cancellation of the underlying obligation. A payment by us would be triggered by failure of the series to fulfill its obligation covered by the guarantee. We are entitled to recover from amounts paid by us under the guarantee by other unrelated institutional investment partners ("CJVII Series investors"), up to their pro rata ownership of the CJVII Series. The maximum potential payments for financial guarantees were $12.4 million and $13.6 million as of December 31, 2023 and March 31, 2023, respectively. Financial guarantees and indemnifications are recorded at fair value at their inception. Subsequent to initial recognition, the guarantee liability is adjusted at each reporting period to reflect the current estimate of expected payments resulting from possible default events over the remaining life of the guarantee. The financial guarantees were made only for the convenience of other CJVII Series investors in the process of obtaining third-party debt to fund acquisitions of aircraft assets. The guarantees did not provide any value to the debt and, as such, the Company did not record a liability related to these financial guarantees. Nonfinancial Guarantees From time to time, we may issue guarantees or indemnifications to third parties assuring performance of lease agreements pertaining to aircraft assets owned by certain CJVII Series ("nonfinancial guarantees"). Air T's performance under these guarantees would be triggered by failure of the series to perform in accordance with the terms stated in the lease agreements. Nonfinancial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable that we will be required to perform under a guarantee or indemnity, the amount of probable payment will be recorded. The maximum potential payments for nonfinancial guarantees were $4.5 million and $4.0 million at December 31, 2023 and March 31, 2023, respectively. The carrying value of recorded liabilities related to nonfinancial guarantees was $0 at both December 31, 2023 and March 31, 2023.

Subsequent Events	9 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Management performs an evaluation of events that occur after the balance sheet date but before condensed consolidated financial statements are issued for potential recognition or disclosure of such events in its condensed consolidated financial statements.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Loss Attributable to Air T, Inc. Stockholders	$ (2,979)	$ (590)	$ (5,119)	$ (3,255)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Financial Statement Presentation (Policies)	9 Months Ended
Financial Statement Presentation (Policies)	Dec. 31, 2023
Accounting Policies [Abstract]
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04- Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In December 2022, the FASB issued ASU 2022-06- Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The amendments in this Update defer the implementation deadline of Topic 848 from December 31, 2022, to December 31, 2024. The Company completed the process of converting its material LIBOR-based contracts, hedging relationships, and other transactions to other reference rates as of September 30, 2023. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07- Segment Reporting (Topic 848): Improvements to Reportable Segment Disclosures. The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses utilized by the chief operating decision maker for a company along with details about who the chief operating decision maker is and their title. The Update additionally requires that all annual disclosures under Topic 280 be included in interim periods financial statements, clarifies when an entity can disclose multiple segment measures of profit or loss, and provides new segment disclosure requirements for entities with a single reportable segment. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this amendment on its condensed consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09- Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update require the addition of specific categories to be disclosed in the rate reconciliation if they meet a quantitative threshold, disclosure of disaggregated income taxes paid to federal, state, and foreign jurisdictions, and disclosure of income or loss from continuing operations disaggregated by federal, state, and foreign jurisdictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this amendment on its consolidated financial statements and disclosures.

Acquisitions (Tables)

9 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Total Consideration

The acquisition date's fair value of the consideration is summarized in the table below (in thousands):


	January 31, 2023
Cash consideration	$	1,628
Seller's Note	1,370
Total consideration	$	2,998

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table outlines the consideration transferred and purchase price allocation at the respective fair values as of January 31, 2023 (in thousands):


	January 31, 2023
ASSETS
Accounts receivable	$	1,037
Inventory	517
Other current assets	97
Property, plant and equipment, net	403
Intangible -Trade Name	342
Intangible - Non-competition Agreement	19
Intangible - Customer Relationships	683
Other assets	20
Total assets	$	3,118

LIABILITIES
Accounts payable	61
Accrued expenses and deferred revenue	635
Total liabilities	$	696

Net assets acquired	$	2,422

Consideration paid	2,998
Less: Cash acquired	(500)
Less: Net assets acquired	(2,422)
Goodwill	$	76

Schedule of Income Recognized By Acquired Entity

The following table sets forth the revenue and expenses of WASI that are included in the Company’s condensed consolidated statement of income for the fiscal year ended March 31, 2023 (in thousands):


	Income Statement Post-Acquisition
Revenue	$	929
Cost of Sales	676
Operating Expenses	425
Operating Loss	(172)
Non-operating expense	(22)
Net loss	$	(194)

Revenue Recognition (Tables)

9 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Performance Obligation Terms

The following is a description of the Company’s performance obligations:


Type of Revenue			Nature, Timing of Satisfaction of Performance Obligations, and Significant Payment Terms
Product Sales			The Company generates revenue from sales of various distinct products such as parts, aircraft equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation. The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price less an estimate of variable consideration (such as rebates, discounts or prompt payment discounts). The Company estimates these amounts based on the expected incentive amount to be provided to customers and reduces revenue accordingly. Performance obligations are short-term in nature and customers are typically billed upon transfer of control. The Company records all shipping and handling fees billed to customers as revenue. The terms and conditions of the customer purchase orders or contracts are dictated by either the Company’s standard terms and conditions or by a master service agreement or by the contract.
Support Services			The Company provides a variety of support services such as aircraft maintenance and short-term repair services to its customers. Additionally, the Company operates certain aircraft routes on behalf of FedEx. A performance obligation is created when the Company agrees to provide a particular service to a customer. For each service, the Company recognizes revenues over time as the customer simultaneously receives the benefits provided by the Company's performance. This revenue recognition can vary from when the Company has a right to invoice to the output or input method depending on the structure of the contract and management’s analysis. For repair-type services, the Company records revenue over-time based on an input method of costs incurred to total estimated costs. The Company believes this is appropriate as the Company is performing labor hours and installing parts to enhance an asset that the customer controls. The vast majority of repair-services are short term in nature and are typically billed upon completion of the service. Some of the Company’s contracts contain a promise to stand ready as the Company is obligated to perform certain maintenance or administrative services. For most of these contracts, the Company applies the 'as invoiced' practical expedient as the Company has a right to consideration from the customer in an amount that corresponds directly with the value of the entity's performance completed to date. A small number of contracts are accounted for as a series and recognized equal to the amount of consideration the Company is entitled to less an estimate of variable consideration (typically rebates). These services are typically ongoing and are generally billed on a monthly basis.

Schedule of Disaggregation of Revenue

The following table summarizes disaggregated revenues by type (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Product Sales
Air Cargo	$	10,050	$	6,416	$	28,428	$	20,303
Ground equipment sales	8,080		15,909		31,556		39,125
Commercial jet engines and parts	21,381		18,515		81,535		54,545
Corporate and other	153		112		775		247
Support Services
Air Cargo	18,929		15,399		56,378		43,979
Ground equipment sales	223		96		474		396
Commercial jet engines and parts	2,533		2,428		8,393		6,958
Corporate and other	1,478		1,157		3,967		3,155
Leasing Revenue

Ground equipment sales	24		42		58		115
Commercial jet engines and parts	12		729		35		1,939
Corporate and other	397		353		1,209		1,223
Other
Air Cargo	39		16		138		182
Ground equipment sales	114		100		386		345
Commercial jet engines and parts	213		64		500		135
Corporate and other	130		60		322		299

Total	$	63,756	$	61,396	$	214,154	$	172,946

Schedule of Contract with Customer, Asset and Liability

The following table presents outstanding contract liabilities as of April 1, 2023 and December 31, 2023 and the amount of contract liabilities as of April 1, 2023 that were recognized as revenue during the nine-month period ended December 31, 2023 (in thousands):


	Outstanding contract liabilities		Outstanding contract liabilities as of April 1, 2023 Recognized as Revenue
As of December 31, 2023	$	3,389
As of April 1, 2023	$	5,000
For the nine months ended December 31, 2023			$	4,433

Accrued Expenses and Other (Tables)

9 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Schedule Accrued Expenses


(In thousands)	December 31, 2023		March 31, 2023

Salaries, wages and related items	$	5,707	$	4,748
Profit sharing and bonus	1,379		1,672
Other Deposits	794		2,560
Other	4,149		4,153
Total	$	12,029	$	13,133

Net Earnings (Loss) Per Share (Tables)

9 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computation of basic and diluted earnings per common share is as follows (in thousands, except for per share figures):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Net (loss) income	$	(2,109)	$	108	$	(3,744)	$	(2,029)
Net income attributable to non-controlling interests	(870)		(698)		(1375)		(1,226)
Net loss attributable to Air T, Inc. Stockholders	$	(2,979)	$	(590)	$	(5,119)	$	(3,255)
Loss per share:
Basic	$	(1.06)	$	(0.21)	$	(1.82)	$	(1.14)
Diluted	$	(1.06)	$	(0.21)	$	(1.82)	$	(1.14)
Antidilutive shares excluded from computation of loss per share	—		5		—		5

Weighted Average Shares Outstanding:
Basic	2,822		2,836		2,820		2,855
Diluted	2,822		2,836		2,820		2,855

Intangible Assets and Goodwill (Tables)

9 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets as of December 31, 2023 and March 31, 2023 consisted of the following (in thousands):


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Purchased software	$	623	$	(484)	$	139
Internally developed software	3,711		(720)		2,991
In-place lease and other intangibles	1,094		(318)		776
Customer relationships	8,162		(1,302)		6,860
Patents	1,112		(1,108)		4
Other	1,768		(1,209)		559
	16,470		(5,141)		11,329
In-process software	130				130
Intangible assets, total	$	16,600	$	(5,141)	$	11,459


	March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Purchased software	$	544	$	(433)	$	111
Internally developed software	3,672		(465)		3,207
In-place lease and other intangibles	1,094		(229)		865
Customer relationships	8,050		(851)		7,199
Patents	1,112		(1,105)		7
Other	1,782		(1,108)		674
	16,254		(4,191)		12,063
In-process software	40		—		40
Intangible assets, total	$	16,294	$	(4,191)	$	12,103

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense


(In thousands)
Year ending March 31,	Amortization
2024 (excluding the nine months ended December 31, 2023)	$	310
2025	1,201
2026	1,118
2027	1,045
2028	990
2029	982
Thereafter	5,683
	$	11,329

Equity Method Investments (Tables)

9 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summarized Unaudited Financial Information

Summarized unaudited financial information for the Company's equity method investees for the three and nine months ended September 30, 2023 and 2022 is as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Revenue	$	34,365	$	37,532	$	133,427	$	111,522
Gross Profit	2,746		4,045		18,076		13,210
Operating (loss) income	(124)		13,382		9,100		17,172
Net income	2,050		13,375		10,439		16,180
Net income attributable to Air T, Inc. stockholders	$	499	$	2,183	$	2,295	$	2,926

Inventories (Tables)

9 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consisted of the following (in thousands):


	December 31, 2023		March 31, 2023
Overnight air cargo:
Finished goods	$	931	$	546
Ground equipment manufacturing:
Raw materials	5,921		4,589
Work in process	2,997		153
Finished goods	2,344		6,976
Corporate and other:
Raw materials	1,118		794
Finished goods	725		726
Commercial jet engines and parts:
Whole engines available for sale or tear-down	—		10,141
Parts	43,693		50,813
Total inventories	57,729		74,738
Reserves	(3,842)		(3,613)
Total inventories, net of reserves	$	53,887	$	71,125

Leases (Tables)

9 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Lease Cost

The components of lease cost for the three and nine months ended December 31, 2023 and 2022 are as follows (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Operating lease cost	$	473	$	537	$	1,897	$	1,529
Short-term lease cost	245		193		628		564
Variable lease cost	247		140		610		415
Total lease cost	$	965	$	870	$	3,135	$	2,508

Amounts reported in the consolidated balance sheets for leases where we are the lessee as of December 31, 2023 and March 31, 2023 were as follows (in thousands):


	December 31, 2023			March 31, 2023
Operating leases
Operating lease ROU assets	$	11,893		$	11,666
Operating lease liabilities	$	12,773		$	12,435

Weighted-average remaining lease term
Operating leases	12 years			12 years, 10 months

Weighted-average discount rate
Operating leases	5.08		%	4.95		%

Schedule of Maturity of Operating Lease Liability

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of December 31, 2023 are as follows (in thousands):


	Operating Leases
2024 (excluding the nine months ended December 31, 2023)	$	640
2025	2,344
2026	2,127
2027	1,979
2028	1,438
2029	750
Thereafter	8,225
Total undiscounted lease payments	17,503
Interest	(3,840)
Discount	(890)
Total lease liabilities	$	12,773

Financing Arrangements (Tables)

9 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following table provides certain information about the current financing arrangements of the Company and its subsidiaries as of December 31, 2023:


(In Thousands)	December 31, 2023		March 31, 2023		Maturity Date	Interest Rate	Unused commitments at December 31, 2023
Air T Debt
Revolver - MBT	$	6,492	$	8,742	8/31/2024	SOFR + range of 2.25% - 3.25%	$	10,508
Term Note A - MBT	7,160		7,762		8/31/2031	3.42%
Term Note B - MBT	2,528		2,740		8/31/2031	3.42%
Term Note D - MBT	1,287		1,338		1/1/2028	1-month LIBOR + 2.00%
Term Note E - MBT	—		800		6/25/2025	Greater of LIBOR + 1.50% or 2.50%
Term Note F - MBT	833		983		1/31/2028	Greater of 6.00% or Prime + 1.00%
Debt - Trust Preferred Securities	32,662		25,598		6/7/2049	8.00%
Total	50,962		47,963

AirCo 1 Debt
Term Loan - PSB	5,434		6,393		12/11/2025	3-month SOFR + 3.26%
Total	5,434		6,393

Jet Yard Debt
Term Loan - MBT	1,776		1,844		8/31/2031	4.14%
Total	1,776		1,844

Contrail Debt
Revolver - ONB	—		12,441		11/24/2025	1-month SOFR + 3.56%	$	25,000
Term Loan G - ONB	24,918		38,180		11/24/2025	1-month SOFR + 3.11%
Total	24,918		50,621

Delphax Solutions Debt
Canadian Emergency Business Account Loan	30		30		12/31/2025	5.00%
Total	30		30

Wolfe Lake Debt
Term Loan - Bridgewater	9,393		9,586		12/2/2031	3.65%
Total	9,393		9,586

Air T Acquisition 22.1
Term Loan - Bridgewater	4,500		4,500		2/8/2027	4.00%
Term Loan A - ING	2,155		2,610		2/1/2027	3.50%
Term Loan B - ING	1,105		1,088		5/1/2027	4.00%
Total	7,760		8,198

WASI Debt
Promissory Note - Seller's Note	958		1,279		1/1/2026	6.00%
Total	958		1,279

Total Debt	101,231		125,914

Unamortized Premiums and Debt Issuance Costs	(445)		(829)
Total Debt, net	$	100,786	$	125,085

Schedule of Maturities of Long-term Debt

At December 31, 2023, our contractual financing obligations, including payments due by period, are as follows (in thousands):


Due by	Amount
December 31, 2024	$	17,367
December 31, 2025	26,335
December 31, 2026	3,075
December 31, 2027	7,219
December 31, 2028	1,755
Thereafter	45,480
	101,231
Unamortized Premiums and Debt Issuance Costs	(445)
	$	100,786

Geographical Information (Tables)

9 Months Ended

Dec. 31, 2023

Long-lived Assets by Geographic Areas


	December 31, 2023		March 31, 2023
United States	$	20,845	$	21,433
Foreign	51		89
Total tangible long-lived assets, net	$	20,896	$	21,522

The net book value of tangible long-lived assets located within each individual foreign country at December 31, 2023 and March 31, 2023 is listed below (in thousands):


	December 31, 2023		March 31, 2023
The Netherlands	$	43	$	42
Other	8		47
Total tangible long-lived assets, net	$	51	$	89

Revenue from External Customers by Geographic Areas

Total revenue, in and outside the United States, is summarized in the following table for the nine months ended December 31, 2023 and December 31, 2022 (in thousands):


	December 31, 2023		December 31, 2022
United States	$	182,334	$	143,433
Foreign	31,820		29,513
Total revenue	$	214,154	$	172,946

Segment Information (Tables)

9 Months Ended

Dec. 31, 2023