Financial Analysis

"COMMITMENTS AND CONTINGENCIES Put/Call Options and Earnout Contrail entered into an Operating Agreement (the Contrail Operating Agreement) in connection with the acquisition of Contrail providing for the governance of and the terms of membership interests in Contrail and including put and call options with the Seller to require Contrail to purchase all of the Sellers equity membership interests in Contrail, such options commencing on the fifth anniversary of the acquisition, which occurred on July 18, 2021. On May 30, 2024, Contrail entered into a Membership Interest Redemption and Earnout Agreement (the ""Redemption Agreement"") with the Seller. Pursuant to the Redemption Agreement, Contrail agreed to purchase and redeem from the Seller, 16% of its 21% interest in Contrail, with the earnout period being retroactive to April 1, 2024. The purchase price for the redeemed interest is $4.6 million in the form of a secured, subordinated promissory note, plus an earnout amount valued at $1.1 million. Under the Redemption Agreement, the Seller is entitled to an annual earnout payment equal to 9.14% of Contrail's adjusted EBITDA over $7.0 million in each fiscal year beginning on March 31, 2025 and continuing through March 31, 2029. Pursuant to the Redemption Agreement, Contrail is required to calculate the earnout payments annually within 30 days following the completion of the annual audits of the Company and Contrail and payment of any amount due is required following satisfaction …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFITS The Company has a 401(k) defined contribution plan covering domestic employees and an 1165(e) defined contribution plan covering Puerto Rico based employees (Plans). All employees of the Company are immediately eligible to participate in the Plans. The Companys contributions to the Plans for the fiscal years ended March 31, 2026 and 2025 were approximately $1.1 million and $1.0 million, respectively, and were recorded in general and administrative expenses in the consolidated statements of income (loss). …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"FINANCING ARRANGEMENTS Borrowings of the Company and its subsidiaries are summarized below. In connection with the acquisition of Royal on May 15, 2025, Air'Zona, CSA, GGS, MAC, WASI, Worthington, Jet Yard, Jet Yard Solutions, and Royal (""the Alerus Loan Parties"") under the Revolving Credit Agreement with Alerus entered into Amendment No. 4 to Credit Agreement and Consent and Term Loan C with Alerus in the amount of $1.1 million. The purpose of the Amendment and Term Note was to provide a term loan to finance the full purchase price of the acquisition, to add Royal as an Alerus Loan Party to the Alerus credit agreement, as amended and to memorialize Alerus consent to the Royal acquisition. The new term loan matures May 15, 2030 and bears interest at the greater of 5.00% or the CME one-month term SOFR rate plus 2.25%. The term loan is secured by the terms of the Security Agreement dated as of August 29, 2024. On May 30, 2025, the Company, along with AAM 24-1 (the ""Issuer""), entered into new transaction documents with two Institutional Investors that replaced the Second Note Purchase Agreement (""Second NPA"") transaction documents. Pursuant to the Third Note Purchase Agreement (""Third NPA"") with the Institutional Investors, the Issuer agreed to issue and sell a Multiple Advance Senior Secured Note in an aggregate principal amount of up to $100.0 million (the Multiple Advance Note). For purposes of clarity and the avoidance of doubt, as of the closing date, the Instituti …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes disaggregated revenues by type (in thousands): Year Ended March 31, 2026 2025 Product Sales Overnight air cargo $ 48,789 $ 42,615 Ground support equipment 45,144 35,903 Commercial aircraft, engines and parts 74,790 106,946 Corporate and other 1,675 661 Support Services Overnight air cargo 74,749 81,287 Ground support equipment 1,271 2,426 Commercial aircraft, engines and parts 9,198 7,923 Corporate and other 41 31 Leasing Revenue Ground support equipment 69 Commercial aircraft, engines and parts 1,997 2,597 Corporate and other 1,708 1,713 Software Services Digital solutions 9,081 7,268 Regional Airline Regional airline 52,095 Other Overnight air cargo 158 129 Ground support equipment 770 542 Commercial aircraft, engines and parts 934 749 Regional airline 3,219 Corporate and other 1,471 991 Total $ 327,090 $ 291,850 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"EMPLOYEE AND NON-EMPLOYEE STOCK OPTIONS Air T, Inc. maintains the 2020 Omnibus Stock and Incentive Plan for the benefit of certain eligible employees and directors. Compensation expense is recognized over the requisite service period for stock options which are expected to vest based on their grant-date fair values. The Company uses either the Black-Scholes option pricing model or Monte Carlo simulations to value stock options the Company grants. The key assumptions for the valuation methodologies include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. Air T's 2020 Omnibus Stock and Incentive Plan On December 29, 2020, the Companys Board of Directors unanimously approved the Omnibus Stock and Incentive Plan (the ""Plan""), which was subsequently approved by the Company's stockholders at the August 18, 2021 Annual Meeting of Stockholders. The total number of shares authorized under the Plan is 420,000. Through March 31, 2026, options to purchase up to 399,300 shares have been granted under the Plan. Of the shares granted under the Plan, a total of 349,800 vest ratably over a period of ten years based on a specified service condition (""vested awards"") and expire ten years after vesting. However, the ability to exercise vested awards, occurring at the conclusion of each annual vesting period, is contingent upon the Co …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures and reports financial assets and liabilities at fair value. Fair value measurement is classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets Measured and Recorded at Fair Value on a Recurring Basis The following consolidated balance sheet items are measured at fair value on a recurring basis (in thousands): Fair Value Measurements at March 31, 2026 2025 Marketable securities (including restricted investments) (Level 1) $ 1,026 $ 1,105 Contrail earnout (Level 3) 442 1,539 The fair value of Contrail's earnout is valued using an income approach and is classified as Level 3 in the hierarchy. See Note 22 . The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable approximate their fair values at March 31, 2026 and 2025.

FairValueDisclosuresTextBlock

INTANGIBLE ASSETS AND GOODWILL Intangible assets consisted of the following (in thousands): March 31, 2026 Gross Carrying Amount Accumulated Amortization Net Book Value Purchased software $ 889 $ (681) $ 208 Internally developed software 5,196 (1,574) 3,622 In-place lease and other intangibles 1,094 (557) 537 Customer relationships 8,446 (2,707) 5,739 Patents 1,139 (1,118) 21 Government contracts 716 (195) 521 Tradenames 1,233 (46) 1,187 Other 1,551 (1,168) 383 20,264 (8,046) 12,218 In-process software 811 811 Intangible assets, total $ 21,075 $ (8,046) $ 13,029 March 31, 2025 Gross Carrying Amount Accumulated Amortization Net Book Value Purchased software $ 865 $ (549) $ 316 Internally developed software 3,658 (1,111) 2,547 In-place lease and other intangibles 1,094 (460) 634 Customer relationships 8,012 (2,007) 6,005 Patents 1,139 (1,114) 25 Government contracts Tradenames Other 1,512 (1,089) 423 16,280 (6,330) 9,950 In-process software 70 70 Intangible assets, total $ 16,350 $ (6,330) $ 10,020 The increase in customer relationships from March 31, 2025 to March 31, 2026 relates to changes in foreign currency translation adjustments. Intangible assets obtained through the acquisition of Rex and recognized at acquisition date fair value included government contracts, tradenames, and internally developed software totaling $0.7 million, $1.2 million, and $1.4 million, respectively. The estimated useful lives over which the intangible assets will be amortized are as follows: gov …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES Income (loss) before income taxes as shown in the consolidated statements of income (loss) consists of the following: Year Ended March 31, 2026 2025 Domestic $ 100,752 $ (4,791) Foreign (14,732) (197) Total $ 86,020 $ (4,988) Income tax expense (benefit) attributable to pretax income (loss) consists of (in thousands): Year Ended March 31, 2026 2025 Current: Federal $ 153 $ State 247 166 Foreign 1,617 557 Total current 2,017 723 Deferred: Federal (399) 83 State (53) (17) Foreign (196) (366) Total deferred (648) (300) Total $ 1,369 $ 423 Income tax expense attributable to pretax income (loss) differed from the amounts computed by applying the U.S. Federal income tax rate of 21.0% to pretax income (loss) as follows (in thousands): Year Ended March 31, 2026 Rate Reconciliation Category Total Amount Rate (%) Earnings Before Income Taxes $ 86,020 U.S. Federal Statutory Tax Rate (21.0%) 18,064 21.0 % RECONCILING ITEMS: 1. State and Local Income Taxes, Net of Federal Effect 1 112 0.1 % 2. Foreign Tax Effects Detail by Jurisdiction: Australia Rate Differential (1,472) -1.7 % Valuation allowance 3,742 4.4 % Other 993 1.2 % Other Foreign Jurisdictions 822 0.9 % 3. Effect of Changes in Tax Laws or Rates Enacted in Current Period 0.0 % 4. Effect of Cross-Border Tax Laws Branch Income 430 0.5 % 5. Tax Credits Research & Development Credit (30) 0.0 % Foreign Tax Credit (810) -1.0 % 6. Changes in Valuation Allowances 3,204 3.7 % 7. Nontaxable or Nondeductible Items Bargain …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LESSEE ARRANGEMENTS The Company has operating leases for the use of real estate, machinery, and office equipment. The components of lease cost for the fiscal years ended March 31, 2026 and 2025 were as follows (in thousands): Year Ended March 31, 2026 2025 Operating lease cost $ 3,860 $ 3,121 Short-term lease cost 1,429 1,111 Variable lease cost 1,207 1,049 Total lease cost $ 6,496 $ 5,281 Amounts reported in the consolidated balance sheets for leases where we are the lessee were as follows (in thousands): March 31, 2026 March 31, 2025 Operating leases Operating lease ROU assets $ 14,594 $ 13,274 Operating lease liabilities $ 15,592 $ 14,220 Weighted-average remaining lease term Operating leases 9 years, 10 months 10 years, 3 months Weighted-average discount rate Operating leases 7.33 % 5.67 % During the fiscal years ended March 31, 2026 and 2025, the Company had ROU assets that were obtained in exchange for new operating lease liabilities in the amount of $4.0 million and $4.1 million, respectively, of which $3.8 million was obtained through the acquisitions of Royal and Rex during the fiscal year ended March 31, 2026. Maturities of lease liabilities under non-cancellable leases where we are the lessee as of March 31, 2026 are as follows (in thousands): Fiscal Operating Leases 2027 $ 4,374 2028 3,713 2029 2,342 2030 1,228 2031 760 Thereafter 9,257 Total undiscounted lease payments 21,674 Interest (6,082) Total lease liabilities $ 15,592

LesseeOperatingLeasesTextBlock

Recently Adopted Accounting Pronouncements 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 disaggregated by federal, state, and foreign jurisdictions. The Company adopted this guidance for the fiscal year ended March 31, 2026. Refer to Note 18 for more information. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03- Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this Update require disaggregated disclosure of income statement expenses for public business entities. The Update does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this am …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"RELATED PARTY MATTERS Nick Swenson, CEO of the Company, along with his affiliates (other than the Company), successors and assignees, are the majority shareholders of CCI. As of March 31, 2026, Mr. Swenson and his affiliates, successors and assignees own 70.4% of ownership interests in CCI. Under the VIE model, Mr. Swenson and his affiliates (other than the Company), successors and assignees are the primary beneficiaries of CCI due to Mr. Swenson's controlling interest in CCI. Mr. Swenson has the ability to direct the activities of CCI that most significantly impact CCI's economic performance is not shared with the Company (""the related party group""). On May 30, 2024, Contrail entered into a Membership Interest Redemption and Earnout Agreement with OCAS, Inc., the minority owner of Contrail. The purchase price for the 16% redeemed interest was $4.6 million, plus an earnout amount. The cash purchase price is payable pursuant to a secured, subordinated promissory note (""OCAS Loan""), payable beginning on May 1, 2024 and monthly thereafter for a twelve-month period of interest payments only with the outstanding balance amortized and paid over the following three years. The remaining balance is scheduled to be paid off during the fiscal year ended March 31, 2027. Interest accrues on the principal amount at an annual rate equal to the ten-year Treasury bond yield plus 375 basis points, compounded monthly. The rate adjusts on each anniversary date of the note. As of March 31, 2 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION Performance Obligations Substantially all of the Companys non-lease revenue is derived from contracts with an initial expected duration of one year or less. As a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations. The following is a description of the Companys performance obligations as of March 31, 2026: 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, printing 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 re …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT INFORMATION Air T's portfolio of businesses are managed on a highly decentralized basis. These businesses are aggregated into operating segments in a manner that reflects how Air T views the business activities. In fiscal year 2026, the Company introduced a new reportable segment named regional airline. This new segment includes all reportable activity as it relates to the operating business of Rex after its acquisition on December 18, 2025 as discussed in Note 2 . Air T's five reportable segments are as follows: Reportable Segment Principal Business Activities Overnight Air Cargo Overnight air cargo primarily operates under its relationship with FedEx spanning over 40 years and represent two of eight companies in the U.S. that have North American feeder airlines under contract with FedEx. MAC and CSA operate and maintain Cessna Caravan, Sky Courier, ATR-42 and ATR-72 aircraft that fly daily small-package cargo routes throughout the eastern U.S. and upper Midwest, and in the Caribbean. Commercial Aircraft, Engines and Parts The commercial aircraft, engines and parts segment manages and leases aviation assets; supplies surplus and aftermarket commercial jet engine components; provides commercial aircraft disassembly/part-out services; commercial aircraft parts sales; procurement services and overhaul and repair services to airlines Ground Support Equipment Ground support equipment manufactures and provides mobile deicers and other specialized equipment products to pas …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as well as its non-wholly owned subsidiaries, Contrail, Shanwick and Delphax. All material intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the prior period amounts to conform to the current presentation. Accounting Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts of assets and liabilities and amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company believes the estimates and assumptions underlying the Companys consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2026. Segments - The Company has five reportable operating segments: overnight air cargo, ground support equipment, commercial aircraft, engines and parts, digital solutions, and regional airline. Regional airline is a new segment for the year ended March 31, 2026. This segment includes the operations acquired in connection with the Company's acquisition of Regional Express Holdings Pty Ltd (""Rex"") on December 18, 2025. The Company assesses the performance of these segments on a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHARE REPURCHASES On May 14, 2014, the Company announced that its Board of Directors had authorized a program to repurchase up to 750,000 (retrospectively adjusted to 1,125,000 after the stock split on June 10, 2019) shares of the Companys common stock from time to time on the open market or in privately negotiated transactions, in compliance with SEC Rule 10b-18, over an indefinite period. 1,264 shares were repurchased by the Company at an aggregate cost of $28,000 during the fiscal year ended March 31, 2026. During the fiscal year ended March 31, 2025, the Company repurchased 70,756 shares at an aggregate cost of $1.4 million, of which all were recorded as treasury shares. The Company has a total of 328,870 and 327,606 treasury shares as of March 31, 2026 and 2025, respectively. As of March 31, 2026, 750,964 shares may be repurchased pursuant to this program. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"SUBSEQUENT EVENTS Cancellation of Bloomia Indebtedness for Exercise of Rights Offering On April 1, 2026, as part of a rights offering by Bloomia, the Company exchanged the full balance of the its notes receivable with Bloomia, totaling $4.0 million of principal and unpaid interest, for 994,989 shares of Bloomia's common stock in addition to purchasing 123,456 shares. Following completion of the rights offering, the Company's equity interest in Bloomia constituted 1,605,264 shares or approximately 33.7% of the outstanding shares of Bloomia common stock after the rights offering closed. Acquisition of Arena On June 10, 2026, the Company, through its subsidiaries and affiliates, entered into and consummated a series of related agreements and transactions involving the reorganization and capitalization of its aviation asset management platform and the acquisition of Arena Aviation Partners B.V., a Netherlands private limited company (Arena). The transactions were completed through Crestone Air Partners, LLC, a Delaware limited liability company (CAP), which serves as the platform vehicle for the combined Crestone and Arena aviation asset management business. At closing, the Company paid cash consideration of $21.8 million for 100% of the outstanding shares of Arena pursuant to that certain Share Purchase Agreement. The consideration is subject to closing adjustments for debt, transaction expenses and leakage. A portion of the consideration payable in respect of certain Class P S …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Put/Call Options and Earnout Contrail entered into an Operating Agreement (the Contrail Operating Agreement) in connection with the acquisition of Contrail providing for the governance of and the terms of membership interests in Contrail and including put and call options with the Seller to require Contrail to purchase all of the Sellers equity membership interests in Contrail, such options commencing on the fifth anniversary of the acquisition, which occurred on July 18, 2021. On May 30, 2024, Contrail entered into a Membership Interest Redemption and Earnout Agreement (the ""Redemption Agreement"") with the Seller. Pursuant to the Redemption Agreement, Contrail agreed to purchase and redeem from the Seller, 16% of its 21% interest in Contrail, with the earnout period being retroactive to April 1, 2024. The purchase price for the redeemed interest is $4.6 million in the form of a secured, subordinated promissory note, plus an earnout amount valued at $1.1 million. Under the Redemption Agreement, the Seller is entitled to an annual earnout payment equal to 9.14% of Contrail's adjusted EBITDA over $7.0 million in each fiscal year beginning on March 31, 2025 and continuing through March 31, 2029. Pursuant to the Redemption Agreement, Contrail is required to calculate the earnout payments annually within 30 days following the completion of the annual audits of the Company and Contrail and payment of any amount due is required following satisfaction …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Financing Arrangements Borrowings of the Company and its subsidiaries are summarized below at December 31, 2025 and March 31, 2025, respectively. In connection with the acquisition of Royal on May 15, 2025, the Air'Zona, CSA, GGS, MAC, WASI, Worthington, Jet Yard, Jet Yard Solutions, and Royal (""the Alerus Loan Parties"") under the Revolving Credit Agreement with Alerus entered into Amendment No. 4 to Credit Agreement and Consent and Term Loan C with Alerus in the amount of $1.1 million. The purpose of the Amendment and Term Note was to provide a term loan to finance the full purchase price of the acquisition, to add Royal as an Alerus Loan Party to the Alerus credit agreement, as amended and to memorialize Alerus consent to the Royal acquisition. The new term loan matures May 15, 2030 and bears interest at the greater of 5.00% or the CME one-month term SOFR rate plus 2.25%. Monthly payments on Term Note C commenced June 15, 2025 and are equal to $12.5 thousand plus accrued interest. The term loan is secured by the terms of the Security Agreement dated as of August 29, 2024. On May 30, 2025, the Company, along with AAM 24-1 (the ""Issuer""), entered into new transaction documents with two Institutional Investors that replaced the Second Note Purchase Agreement (""Second NPA"") transaction documents. Pursuant to the Third Note Purchase Agreement (""Third NPA"") with the Institutional Investors, the Issuer agreed to issue and sell a Multiple Advance Senior Secured Note in an …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table summarizes disaggregated revenues by type (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2025 2024 2025 2024 Product Sales Overnight air cargo $ 11,739 $ 10,513 $ 35,410 $ 30,281 Ground support equipment 12,224 10,108 35,742 31,258 Commercial aircraft, engines and parts 16,625 29,488 51,764 83,271 Corporate and other 796 229 1,286 402 Support Services Overnight air cargo 18,829 20,067 55,533 61,762 Ground support equipment 376 1,486 1,084 1,939 Commercial aircraft, engines and parts 1,948 1,846 7,282 6,151 Corporate and other 8 2 32 19 Leasing Revenue Ground support equipment 30 Commercial aircraft, engines and parts 21 1,172 1,979 1,687 Corporate and other 418 415 1,288 1,285 Software Services Digital solutions 2,454 1,965 6,759 5,479 Regional Airline Regional airline 4,860 4,860 Other Overnight air cargo 13 12 151 119 Ground support equipment 183 252 664 428 Commercial aircraft, engines and parts 230 182 640 756 Regional airline 322 322 Corporate and other 85 143 1,356 668 Total $ 71,131 $ 77,880 $ 206,152 $ 225,535 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"EMPLOYEE AND NON-EMPLOYEE DIRECTOR STOCK OPTIONS Air T, Inc. maintains the 2020 Omnibus Stock and Incentive Plan for the benefit of certain eligible employees and directors. Compensation expense is recognized over the requisite service period for stock options which are expected to vest based on their grant-date fair values. The Company uses either the Black-Scholes option pricing model or Monte Carlo simulations to value stock options the Company grants. The key assumptions for the valuation methodologies include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. On December 29, 2020, the Companys Board of Directors unanimously approved the Omnibus Stock and Incentive Plan (the ""Plan""), which was subsequently approved by the Company's stockholders at the August 18, 2021 Annual Meeting of Stockholders. The total number of shares authorized under the Plan is 420,000. Through December 31, 2025, options to purchase up to 399,300 shares have been granted under the Plan. Of the shares granted under the Plan, 349,800 vest annually over a period of ten years based on a specified service condition (""vested awards"") and expire ten years after vesting. However, the ability to exercise vested awards, occurring at the conclusion of each annual vesting period, is contingent upon the Company's stock price meeting predetermined mi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Intangible Assets and Goodwill Intangible assets as of December 31, 2025 and March 31, 2025 consisted of the following (in thousands): December 31, 2025 Gross Carrying Amount Accumulated Amortization Net Book Value Purchased software $ 884 $ (647) $ 237 Internally developed software 5,222 (1,445) 3,777 In-place lease and other intangibles 1,094 (535) 559 Customer relationships 8,607 (2,597) 6,010 Patents 1,139 (1,117) 22 Government contracts 1,073 (37) 1,036 Tradenames 1,206 (6) 1,200 Other 1,545 (1,150) 395 20,770 (7,534) 13,236 In-process software 658 658 Intangible assets, total $ 21,428 $ (7,534) $ 13,894 March 31, 2025 Gross Carrying Amount Accumulated Amortization Net Book Value Purchased software $ 865 $ (549) $ 316 Internally developed software 3,658 (1,111) 2,547 In-place lease and other intangibles 1,094 (460) 634 Customer relationships 8,012 (2,007) 6,005 Patents 1,139 (1,114) 25 Government contracts Tradenames Other 1,512 (1,089) 423 16,280 (6,330) 9,950 In-process software 70 70 Intangible assets, total $ 16,350 $ (6,330) $ 10,020 The increase in customer relationships from March 31, 2025 to December 31, 2025 relates to the quarterly changes in foreign currency translation adjustments at Shanwick. Intangible assets obtained from the acquisition of Rex on December 18, 2025 included government contracts, tradenames, and internally developed software totaling $1.1 million, $1.2 million, and $1.4 million, respectively. The estimated useful lives over which the intang …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes During the three-month period ended December 31, 2025, the Company recorded $0.1 million in income tax expense at an effective tax rate (ETR) of 6.4%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate 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, 2025 were the valuation allowance related to the Company's U.S. consolidated group, Delphax Technologies, Inc. (DTI), Delphax Solutions, Inc. (DSI), and Rex and its subsidiaries, the foreign rate differentials for Air Ts operations located in the Netherlands and Puerto Rico, non-deductible acquisition-related costs, and the benefit from the Foreign-Derived Intangible Income (FDII) deduction. On July 4, 2025, the One Big Beautiful Bill Act (""OBBBA"") was signed into law in the U.S., which includes a broad range of tax reform provisions affecting businesses. The Company has reflected the impact of the OBBBA in the second quarter of 2026 financial statements as required by generally accepted accounting principles. The Company is evaluating the full effects of the legislation on its estimated annual effective tax rate and cash tax position, but does not expect the legislation to have a material impact on its financial statements. During the three-month period ended Decem …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lessee Arrangements The Company has operating leases for the use of real estate, machinery, and office equipment. The majority of our leases have a lease term of 2 to 5 years; however, we have certain leases with longer terms of up to 30 years. Many of our leases include options to extend the lease for an additional period. The lease term for all of the Companys leases includes the non-cancellable period of the lease, plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor that is considered likely to be exercised. Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments. Variable payments are typically operating costs associated with the underlying asset and are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Our leases do not contain residual value guarantees. 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 interest rate implicit in lease contracts is typically not readily determinable, and as such the Company utilizes the incremental borrowing rate to calculate lease liabilities, which is the rate incurred to borrow on a collateralized basis over a similar term, an amount equal to t …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (""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. In November 2024, the FASB issued ASU 2024-03- Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disaggregated disclosure of income statement expenses for public business entities. The update does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. For public business entities, the amendments in this update are effective for fiscal years beginning after December 1 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition Performance Obligations Substantially all of the Companys non-lease revenue is derived from contracts with an initial expected duration of one year or less. As a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations. The following is a description of the Companys performance obligations as of December 31, 2025: 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, printing 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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information Air T's portfolio of businesses are managed on a highly decentralized basis. These businesses are aggregated into operating segments in a manner that reflects how Air T views the business activities. The Company's chief operating decision maker is the Chief Executive Officer. The Chief Executive Officer is ultimately responsible for significant capital allocation decisions and evaluating operating performance. In assessing performance for the Company's businesses, the chief operating decision maker (""CODM"") reviews operating income and Adjusted EBITDA. Certain operating segments are aggregated into reportable segments. Effective as of the third quarter of fiscal year 2026, the Company introduced a new reportable segment named, ""Regional Airline"". This new segment includes all reportable activity as it relates to the operating business of Rex, the business acquired by the Company as discussed in Note 2 . Effective as of the fourth quarter of fiscal year 2025, the Company renamed the ground equipment sales segment to ground support equipment and renamed the commercial jet engines and parts segment to commercial aircraft, engines and parts to better align the descriptions of the segments with their activities. Additionally, the Company elected to separately disclose the digital solutions segment, as of the fourth quarter of fiscal year 2025, to align presentation in the financial statements with a key anticipated long-term growth area for the Company. Di …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"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, 2025. The unaudited results of operations for the period ended December 31, 2025 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. Recently Issued Accounting Pronouncem …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shares Repurchased On May 14, 2014, the Company announced that its Board of Directors had authorized a program to repurchase up to 750,000 (retrospectively adjusted to 1,125,000 after the stock split on June 10, 2019) shares of the Companys common stock from time to time on the open market or in privately negotiated transactions, in compliance with SEC Rule 10b-18, over an indefinite period. No shares were repurchased by the Company during the nine months ended December 31, 2025. As of December 31, 2025, 752,228 shares may be repurchased pursuant to this program. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Management performs an evaluation of events that occur after the balance sheet date but before consolidated financial statements are issued for potential recognition or disclosure of such events in its consolidated financial statements. Management is not aware of any events that occur after the balance sheet date but before consolidated financial statements are issued that would materially affect the accuracy of those statements as of the date of issuance.

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