Summary of Air T (NasdaqCM:AIRT) FY Conference Call Company Overview - **Company Name**: Air T - **Ticker Symbol**: AIRT - **Industry**: Aviation and Aircraft Asset Management - **Key Personnel**: Dan Philpe (Senior Vice President, Corporate Development), Nick Swenson (CEO) Core Business Model - Air T focuses on building aviation companies through acquisitions and starting new businesses, primarily in aircraft asset management [2][3] - The company typically acquires one to two businesses per year, emphasizing a patient and strategic approach to acquisitions [3] - Air T operates with a decentralized management structure, allowing individual business units to make local decisions [4][10] Financial and Shareholder Insights - Senior management owns 20% of the company, with CEO Nick Swenson owning 49% [5] - The company has conducted stock buybacks, removing 22% of its stock from the market over time [5] - Air T aims to improve shareholder communication and transparency [6] Business Units and Operations - Air T owns three feeder airlines for FedEx, which are cash-generative and asset-light [8] - The company has a diversified portfolio, including businesses focused on aircraft engines, airframes, and maintenance services [21][22] - Recent acquisitions include World ACD, a co-op database for cargo information, and Crestone, which manages aircraft joint ventures [19][24] Recent Developments - Air T is in the process of acquiring Regional Express, the third-largest airline in Australia, which is expected to close soon [36] - The company has developed a significant asset management platform, allowing it to manage aircraft and generate fee income [28][30] Financial Performance - The company reported a working capital high due to inventory levels in its de-icing manufacturing business [17] - Air T's capital structure includes $35 million in trust-preferred securities with an 8% coupon [16] - The company is approaching $1 billion in assets under management (AUM) for its aircraft joint ventures [29] Market Position and Strategy - Air T aims to capitalize on the aging aircraft market, with many older aircraft still in operation due to issues with newer technology [40] - The company is focused on making the end-of-life aircraft market more institutionalized and understandable [41] - Air T plans to grow its leasing capabilities and potentially acquire younger aircraft as it scales [41] Digital Initiatives - Air T has invested in digital solutions, including Amber Hill Technologies, which provides ERP solutions for maintenance and repair facilities [32][33] - The company is experiencing growth in annual recurring revenue (ARR) from its software and data businesses [31] Conclusion - Air T is strategically positioned in the aviation industry with a focus on aircraft asset management and a diversified portfolio of businesses. The company is committed to enhancing shareholder value through acquisitions, operational efficiency, and improved communication.

Shares of Air T, Inc. (AIRT) have lost 0.3% since the company reported results for the fiscal year ended Sept. 30, 2025, modestly outperforming the S&P 500 Index’s 1.9% decline over the same period. However, over the past month, the stock has lost 8.2% against the S&P 500’s 0.1% gain.AIRT’s Earnings SnapshotAir T’s second-quarter fiscal 2026 performance showed mixed top-line results but notable profitability gains. Revenues for the quarter ended Sept. 30, 2025, declined 21% year over year to $64.2 million f ...

Core Insights - Air T, Inc. is an industrious American company with a diverse portfolio of independent yet interrelated businesses [1] Company Overview - The company seeks dynamic individuals and teams to operate its businesses [1] - Air T, Inc. focuses on processes and insights that drive increasing value over time [1]

Financial Results - Air T, Inc. reported financial results for the quarter ended September 30, 2025, with a focus on operational performance and market conditions[7] - The company issued a press release detailing its earnings, which is available as Exhibit 99.1[7] Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[8] - The financial results will not be deemed "filed" under the Exchange Act, indicating a specific reporting structure[8] Management - Tracy Kennedy serves as the Chief Financial Officer, responsible for the financial disclosures[13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) Commission File Number 001-35476 Air T, Inc. (Exact name of registrant as specified in its charter) Delaware 52-1206400 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11020 David Taylor Drive, Suite 305, Charlotte, North Carolina 28262 (Address of principal executive offices, including zip code) (980) 595 – 2840 (Registrant's telephone number, including area code) ...

Core Points - Air T, Inc. has received strong support from a majority of Rex's creditors for its acquisition bid, indicating confidence in the company's vision for Rex and commitment to regional aviation in Australia [1] Company Summary - The second meeting of creditors took place on November 11, 2025, where the majority of creditors, both in number and value, voted in favor of Air T, Inc.'s bid [1]

Core Insights - Air T, Inc. has entered into a Sale and Implementation Deed with the Administrators of Regional Express Holdings Limited and its subsidiaries, indicating a strategic acquisition move [1] - The acquisition of Regional Express, a leading regional airline in Australia, is expected to be finalized by the end of the year, pending necessary approvals [1] Company Summary - Air T, Inc. is pursuing the acquisition of Regional Express Holdings Limited, which operates a prominent regional airline in Australia [1] - The completion of the acquisition is contingent upon obtaining creditor and other necessary approvals [1]

Core Viewpoint - Air T, Inc. (AIRT) reported mixed financial results for the fiscal year ended June 30, 2025, with revenue growth but increased net losses, highlighting both strengths in certain segments and weaknesses in others [1][2][7]. Revenue and Earnings Performance - AIRT reported revenues of $70.9 million for Q1 fiscal 2026, a 6.7% increase from $66.4 million in the prior-year quarter [2] - The company posted a net loss of $1.6 million, compared to a loss of $0.3 million in the same quarter last year, with loss per share widening to $0.61 from $0.12 [2] - Operating income improved to $0.4 million from a loss of $0.6 million in the prior-year quarter [2] Segment Results - Ground Support Equipment and Digital Solutions showed strong contributions, while Commercial Aircraft, Engines, and Parts experienced weakness [3] - Overnight Air Cargo revenues increased by 0.7% to $30.6 million, but adjusted EBITDA decreased by 17.2% to $1.6 million due to lower maintenance margins [5] - Ground Support Equipment revenues surged by 104.9% to $15.1 million, with adjusted EBITDA turning positive at $1.4 million from a loss of $0.5 million [5] - The Commercial Aircraft, Engines, and Parts segment saw revenues decline by 16.3% to $21.9 million, primarily due to weaker component sales, with adjusted EBITDA down 54.7% to $0.8 million [6] - Digital Solutions revenues rose by 24.9% to $2.1 million, narrowing adjusted EBITDA loss to $0.1 million from $0.3 million [6] Key Business Metrics - Adjusted EBITDA was $1.5 million, up 71.1% from $0.9 million in the prior year [4] - Investment balance in equity method investees increased to $19.9 million from $19 million at the end of March 2025 [4] Management Commentary - Chairman and CEO Nick Swenson expressed satisfaction with the company's performance and highlighted strategic initiatives for long-term value creation, particularly in Ground Support Equipment and Digital Solutions [7] Factors Influencing Performance - Revenue growth was driven by strong demand for deicing trucks in Ground Support Equipment, which more than doubled sales compared to the prior year [8] - Overnight Air Cargo performance remained steady, supported by FedEx-related operations, although profitability declined due to lower-margin maintenance activities [8] - Digital Solutions benefited from customer acquisition momentum in subscription software [8] Expense and Non-Operating Results - Consolidated operating expenses increased by 5.1% year over year, mainly due to higher costs in Ground Support Equipment [9] - Non-operating results were less favorable, with a non-operating loss of $1.3 million compared to income of $0.7 million in the prior year, attributed to higher interest expenses and weaker contributions from equity method investments [9] Strategic Developments - On May 15, 2025, AIRT's subsidiary Mountain Air Cargo acquired Royal Aircraft Services for $1.2 million, integrating it into the Overnight Air Cargo segment [12] - On July 15, 2025, Contrail's subsidiary sold two Airbus A321 aircraft for over $18 million, transferring lease obligations to the buyer, reflecting ongoing portfolio restructuring [12]

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section provides essential details regarding the FORM 8-K filing, including registrant information, filing specifics, registered securities, and emerging growth company status [Registrant Information](index=1&type=section&id=Registrant%20Information) This section details the registrant, AIR T, INC., a Delaware corporation, including its principal executive offices and contact information - Registrant Name: **AIR T, INC.**[3](index=3&type=chunk) - Jurisdiction of Incorporation: **Delaware**[3](index=3&type=chunk) - Principal Executive Offices: **11020 David Taylor Drive, Suite 305, Charlotte, North Carolina 28262**[4](index=4&type=chunk) - Registrant's Telephone Number: **(980) 595-2840**[4](index=4&type=chunk) [Filing Details](index=1&type=section&id=Filing%20Details) This section specifies the nature of the filing as a Form 8-K Current Report, filed pursuant to the Securities Exchange Act of 1934, with the earliest event reported on August 13, 2025 - Form Type: **FORM 8-K CURRENT REPORT**[2](index=2&type=chunk) - Date of Earliest Event Reported: **August 13, 2025**[3](index=3&type=chunk) - Filing Purpose: Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934[3](index=3&type=chunk) [Securities Registered](index=1&type=section&id=Securities%20Registered) This part lists the classes of securities registered by AIR T, INC. under Section 12(b) of the Act, including their trading symbols and the exchanges on which they are registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock | AIRT | NASDAQ Capital Market | | Alpha Income Preferred Securities (also referred to as 8% Cumulative Capital Securities) ("AIP") | AIRTP | NASDAQ Global Market | [Emerging Growth Company Status](index=2&type=section&id=Emerging%20Growth%20Company%20Status) The registrant indicates that it is not an emerging growth company as defined by the Securities Act of 1933 or the Securities Exchange Act of 1934 - Status: **Not an emerging growth company**[6](index=6&type=chunk) [Current Report Items](index=3&type=section&id=Current%20Report%20Items) This section details the specific items reported in the Form 8-K, including financial results and a list of exhibits [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Air T, Inc. announced its financial results for the quarter ended June 30, 2025, via a press release issued on August 13, 2025, which is furnished as Exhibit 99.1. The company clarifies that this information is 'furnished' and not 'filed' for specific legal purposes under the Exchange Act - Event: Air T, Inc. issued a press release announcing financial results for the quarter ended **June 30, 2025**[7](index=7&type=chunk) - Date of Press Release: **August 13, 2025**[7](index=7&type=chunk) - Exhibit Reference: The full text of the press release is furnished as **Exhibit 99.1**[7](index=7&type=chunk) - Legal Disclaimer: The information is deemed 'furnished' and not 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, and not incorporated by reference into other filings unless expressly stated[7](index=7&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits included with this Current Report on Form 8-K, specifically the press release detailing financial results and the Inline XBRL for the cover page | Exhibit Number | Description | | :------------- | :---------------------------------------------- | | 99.1 | Press Release of Air T, Inc. dated August 13, 2025 | | 104 | Inline XBRL for the cover page of this Current Report on Form 8-K | [Signatures](index=4&type=section&id=SIGNATURES) This section confirms the official signing of the Form 8-K report by the authorized corporate officer [Signature Details](index=4&type=section&id=Signature%20Details) The report was duly signed on behalf of AIR T, INC. by Tracy Kennedy, Chief Financial Officer, on August 13, 2025, in compliance with the Securities Exchange Act of 1934 - Signatory: **Tracy Kennedy, Chief Financial Officer**[12](index=12&type=chunk) - Date of Signature: **August 13, 2025**[11](index=11&type=chunk)

[PART I - Financial Information](index=4&type=section&id=PART%20I%20-%20Financial%20Information) This part provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Air T, Inc. and its subsidiaries [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Air T, Inc. and its subsidiaries, including statements of income, comprehensive income, balance sheets, cash flows, equity, and detailed notes, for the periods ended June 30, 2025, and March 31, 2025 [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) This statement details the company's operating revenues, expenses, and net loss for the three months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Operating Revenues | $70,870 | $66,411 | | Operating Expenses | $70,424 | $66,988 | | Operating Income (Loss) | $446 | $(577) | | Non-operating (Expense) Income | $(1,253) | $680 | | (Loss) Income before income taxes | $(807) | $103 | | Income Tax (Benefit) Expense | $(136) | $71 | | Net (Loss) Income | $(671) | $32 | | Net Loss Attributable to Air T, Inc. Stockholders | $(1,636) | $(335) | | Basic Loss per share | $(0.61) | $(0.12) | | Diluted Loss per share | $(0.61) | $(0.12) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents the net loss and other comprehensive income components, including foreign currency translation and reclassification of interest rate swaps Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net (Loss) Income | $(671) | $32 | | Foreign currency translation gain (loss) | $413 | $(50) | | Reclassification of interest rate swaps into earnings | $12 | $(203) | | Redemption of non-controlling interest | — | $146 | | Other | $(243) | $1 | | Total Other Comprehensive Gain (Loss) | $182 | $(106) | | Total Comprehensive Loss | $(489) | $(74) | | Comprehensive Income Attributable to Non-controlling Interests | $(965) | $(367) | | Comprehensive Loss Attributable to Air T, Inc. Stockholders | $(1,454) | $(441) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' deficit as of June 30, 2025, and March 31, 2025 Condensed Consolidated Balance Sheets (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :-------------- | :------------- | | **ASSETS** | | | | Cash and cash equivalents | $14,460 | $5,932 | | Total Current Assets | $92,933 | $78,507 | | Total Assets | $190,037 | $173,778 | | **LIABILITIES AND STOCKHOLDERS' DEFICIT** | | | | Total Current Liabilities | $49,051 | $47,661 | | Long-term debt | $117,762 | $101,226 | | Total Liabilities | $184,745 | $168,242 | | Redeemable non-controlling interests | $8,210 | $7,054 | | Total Air T, Inc. Stockholders' Deficit | $(4,630) | $(3,216) | | Total Deficit | $(2,918) | $(1,518) | | Total Liabilities and Deficit | $190,037 | $173,778 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash flows from operating, investing, and financing activities for the three months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(1,095) | $113 | | Net cash (used in) provided by investing activities | $(2,724) | $2,008 | | Net cash provided by (used in) financing activities | $12,577 | $(1,291) | | Effect of foreign currency exchange rates on cash and cash equivalents | $(292) | $32 | | Net Increase in Cash and Cash Equivalents and Restricted Cash | $8,466 | $862 | | Cash and Cash Equivalents and Restricted Cash at End of Period | $15,223 | $8,705 | [Condensed Consolidated Statements of Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This statement details changes in equity components, including common stock, retained earnings, and non-controlling interests, for the period ended June 30, 2025 Condensed Consolidated Statements of Equity (in thousands) | Equity Component | Balance, March 31, 2025 | Net Income (Loss) | Distributions to NCI | Stock Compensation Expense | Foreign Currency Translation Gain | Reclassification of Interest Rate Swaps | Allocation of Comprehensive Income | Allocation of Comprehensive Income to Redeemable NCI | Balance, June 30, 2025 | | :------------------------------------ | :---------------------- | :------------------ | :------------------- | :------------------------- | :------------------------------ | :------------------------------------- | :------------------------------------------------ | :------------------------------------------------------- | :--------------------- | | Common Stock (Amount) | $758 | — | — | — | — | — | — | — | $758 | | Treasury Stock (Amount) | $(6,404) | — | — | — | — | — | — | — | $(6,404) | | Additional Paid-In Capital | $947 | — | — | $40 | — | — | — | — | $987 | | Retained Earnings | $2,130 | $(1,636) | — | — | — | — | — | — | $494 | | Accumulated Other Comprehensive Income (Loss) | $(647) | — | — | — | $413 | $12 | $5 | $(248) | $(465) | | Non-controlling Interests | $1,698 | $52 | $(38) | — | — | — | — | — | $1,712 | | **Total Equity (Deficit)** | **$(1,518)** | **$(1,584)** | **$(38)** | **$40** | **$413** | **$12** | **$5** | **$(248)** | **$(2,918)** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanatory notes supporting the unaudited condensed consolidated financial statements, covering accounting policies, acquisitions, and other financial disclosures [1. Financial Statement Presentation](index=14&type=section&id=1.%20Financial%20Statement%20Presentation) This note clarifies the basis of presentation for the unaudited condensed consolidated financial statements and discusses the impact of new accounting standards - The condensed consolidated financial statements are unaudited and prepared in accordance with GAAP, with certain information condensed or omitted per SEC rules, and are not necessarily indicative of full-year results[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company is evaluating the impact of new FASB ASUs 2023-09 (Income Taxes) and 2024-03 (Expense Disaggregation) on its consolidated financial statements and disclosures, effective for fiscal years beginning after December 15, 2024, and December 15, 2026, respectively[26](index=26&type=chunk)[27](index=27&type=chunk) [2. Acquisitions](index=15&type=section&id=2.%20Acquisitions) This note details the acquisition of Royal Aircraft Services, LLC by Mountain Air Cargo, Inc. on May 15, 2025 - On May 15, 2025, Mountain Air Cargo, Inc. (a wholly-owned subsidiary) acquired Royal Aircraft Services, LLC, an aircraft maintenance and repair company, for **$1.2 million**, net of cash acquired, integrating it into the Overnight Air Cargo segment[28](index=28&type=chunk) [3. Revenue Recognition](index=16&type=section&id=3.%20Revenue%20Recognition) This note describes the company's revenue recognition policies across various streams and provides disaggregated revenue data - The Company generates revenue from product sales (point-in-time), support services (over time, based on input/output methods), software services (ratably over subscription terms), and leasing revenue[31](index=31&type=chunk)[32](index=32&type=chunk) Disaggregated Revenues by Type (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Product Sales | $44,710 | $40,515 | | Support Services | $20,649 | $23,037 | | Leasing Revenue | $2,210 | $518 | | Software Services | $2,096 | $1,678 | | Other | $1,155 | $633 | | **Total** | **$70,870** | **$66,411** | Outstanding Contract Liabilities (in thousands) | Contract Liabilities | As of June 30, 2025 | As of April 1, 2025 | Recognized as Revenue (3 months ended June 30, 2025) | | :----------------------- | :------------------ | :------------------ | :--------------------------------------------------- | | Outstanding | $7,781 | $4,199 | $(1,577) | [4. Accrued Expenses and Other](index=19&type=section&id=4.%20Accrued%20Expenses%20and%20Other) This note provides a breakdown of accrued expenses and other current liabilities as of June 30, 2025, and March 31, 2025 Accrued Expenses and Other (in thousands) | Category | June 30, 2025 | March 31, 2025 | | :---------------------- | :-------------- | :------------- | | Salaries, wages and related | $6,477 | $6,235 | | Profit sharing and bonus | $827 | $2,980 | | Other Deposits | $2,965 | $513 | | Deferred Income | $4,816 | $3,686 | | Accrued insurance payable | $2,949 | $1,336 | | Other | $2,589 | $1,941 | | **Total** | **$20,623** | **$16,691** | [5. Income Taxes](index=19&type=section&id=5.%20Income%20Taxes) This note discusses the income tax benefit and expense, effective tax rates, and the impact of recent tax legislation for the periods presented - For the three months ended June 30, 2025, the Company recorded a **$0.1 million income tax benefit** at an effective tax rate (ETR) of **16.9%**, primarily due to valuation allowances, foreign rate differentials, and the Foreign-Derived Intangible Income (FDII) deduction[35](index=35&type=chunk) - For the three months ended June 30, 2024, the Company recorded income tax expense of **$71.0 thousand** at an ETR of **68.9%**, influenced by valuation allowances and foreign rate differentials[37](index=37&type=chunk) - The 'One Big Beautiful Bill Act,' signed July 4, 2025, is being evaluated for its full effects but is not expected to materially impact the financial statements for the period ended June 30, 2025, as it was enacted after the quarter-end[36](index=36&type=chunk) [6. Net Loss Per Share](index=19&type=section&id=6.%20Net%20Loss%20Per%20Share) This note presents the basic and diluted net loss per share attributable to Air T, Inc. stockholders for the three months ended June 30, 2025 and 2024 Net Loss Per Share (in thousands, except per share figures) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net Loss Attributable to Air T, Inc. Stockholders | $(1,636) | $(335) | | Basic Loss per share | $(0.61) | $(0.12) | | Diluted Loss per share | $(0.61) | $(0.12) | | Weighted Average Shares Outstanding (Basic) | 2,703 | 2,761 | | Weighted Average Shares Outstanding (Diluted) | 2,703 | 2,761 | [7. Intangible Assets and Goodwill](index=20&type=section&id=7.%20Intangible%20Assets%20and%20Goodwill) This note provides details on the net book value of intangible assets and changes in goodwill by segment Intangible Assets, Net Book Value (in thousands) | Intangible Asset Category | June 30, 2025 | March 31, 2025 | | :-------------------------- | :-------------- | :------------- | | Purchased software | $298 | $316 | | Internally developed software | $2,601 | $2,547 | | In-place lease and other | $609 | $634 | | Customer relationships | $6,305 | $6,005 | | Patents | $24 | $25 | | Other | $431 | $423 | | In-process software | $170 | $70 | | **Total Intangible Assets** | **$10,438** | **$10,020** | - Goodwill increased from **$10.5 million** at March 31, 2025, to **$11.9 million** at June 30, 2025, primarily due to the Royal acquisition (**$1.0 million**) and foreign currency translation adjustments at Shanwick (**$0.3 million**)[42](index=42&type=chunk) Goodwill by Segment (at cost, in thousands) | Goodwill by Segment | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :-------------- | :------------- | | Overnight air cargo | $1,121 | $76 | | Commercial aircraft, engines and parts | $4,227 | $4,227 | | Digital solutions | $6,555 | $6,239 | | **Total reportable segment goodwill** | **$11,903** | **$10,542** | [8. Investments in Securities and Derivative Instruments](index=21&type=section&id=8.%20Investments%20in%20Securities%20and%20Derivative%20Instruments) This note describes the company's use of interest rate swaps and the fair value measurement of marketable equity securities - The Company uses interest rate swaps for risk management, but as of June 30, 2025, all previously designated cash flow hedging instruments are no longer effective hedges[44](index=44&type=chunk) - A new floating-to-fixed interest rate swap for a **$2.3 million** loan was entered into on February 28, 2025, with fair value changes recognized directly into earnings, as hedge accounting was not applied[45](index=45&type=chunk) - Marketable equity securities are carried at fair value (Level 1), with immaterial gross unrealized gains and losses for the three months ended June 30, 2025 and 2024[48](index=48&type=chunk)[49](index=49&type=chunk) [9. Equity Method Investments](index=22&type=section&id=9.%20Equity%20Method%20Investments) This note details the company's significant equity method investments and their contribution to net income or loss - The Company holds significant equity method investments in Lendway, Inc. (**27.5% ownership**), Cadillac Casting, Inc. (**20.1% ownership**), and Crestone Asset Management, LLC (**90% economic common interests**)[50](index=50&type=chunk)[52](index=52&type=chunk)[56](index=56&type=chunk) Equity Method Investment Balances (in thousands) | Investment | June 30, 2025 | March 31, 2025 | | :-------------------------- | :-------------- | :------------- | | Lendway | $858 | $729 | | CCI | $3,860 | $3,889 | | CAM | $13,385 | $12,428 | | Other equity method investments | $1,797 | $1,957 | | **Total** | **$19,900** | **$19,003** | Net (Loss) Income Attributable to Air T, Inc. Stockholders from Equity Method Investees (in thousands) | Investment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | Lendway | $123 | $(290) | | CCI | $(29) | $674 | | CAM | $(251) | $1,495 | | Other equity method investments | $138 | $44 | | **Total** | **$(19)** | **$1,923** | [10. Inventories](index=24&type=section&id=10.%20Inventories) This note provides a breakdown of inventories, net of reserves, by category as of June 30, 2025, and March 31, 2025 Inventories, Net of Reserves (in thousands) | Inventory Category | June 30, 2025 | March 31, 2025 | | :----------------- | :-------------- | :------------- | | Raw Materials | $7,275 | $6,928 | | Work in process | $3,078 | $2,342 | | Finished Goods | $4,084 | $5,358 | | Aircraft parts | $30,440 | $28,794 | | Reserves | $(4,991) | $(4,906) | | **Total Inventories, net** | **$39,886** | **$38,516** | [11. Lessor Arrangements](index=24&type=section&id=11.%20Lessor%20Arrangements) This note outlines the company's leasing activities as a lessor, including depreciation expense and future minimum rental payments - The Company leases equipment (aircraft and engines) and offices to third parties[65](index=65&type=chunk) - Depreciation expense for equipment leases was **$0.6 million** in Q1 2026 (vs. **$0.1 million** in Q1 2025), and for office leases was **$0.1 million** in both periods[69](index=69&type=chunk) - Earned contingent rent on equipment leases totaled approximately **$0.5 million** for the three months ended June 30, 2025, with no contingent rent in the prior year period[66](index=66&type=chunk) Future Minimum Rental Payments to be Received (in thousands) | Year Ended March 31, | Equipment Leases | Office Leases | | :------------------------------------ | :--------------- | :------------ | | 2026 (excluding Q1 2026) | $2,192 | $765 | | 2027 | $3,361 | $990 | | 2028 | $2,843 | $849 | | 2029 | — | $774 | | 2030 | — | $743 | | Thereafter | — | $1,824 | | **Total** | **$8,396** | **$5,945** | [12. Lessee Arrangements](index=25&type=section&id=12.%20Lessee%20Arrangements) This note details the company's lease costs, operating lease balances, and maturities of lease liabilities as a lessee Components of Lease Cost (in thousands) | Lease Cost Component | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Operating lease cost | $841 | $668 | | Short-term lease cost | $279 | $294 | | Variable lease cost | $246 | $226 | | **Total lease cost** | **$1,366** | **$1,188** | Operating Lease Balances (in thousands, except terms/rates) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------- | :-------------- | :-------------- | | Operating lease ROU assets | $12,898 | $13,274 | | Operating lease liabilities | $13,848 | $14,220 | | Weighted-average remaining lease term | 10 years, 2 months | 10 years, 3 months | | Weighted-average discount rate | 5.68% | 5.67% | Maturities of Lease Liabilities (in thousands) | Operating Leases | Amount | | :------------------------------------ | :----- | | 2026 (excluding Q1 2026) | $2,450 | | 2027 | $3,065 | | 2028 | $2,358 | | 2029 | $1,750 | | 2030 | $977 | | Thereafter | $7,669 | | Total undiscounted lease payments | $18,269 | | Interest | $(4,421) | | **Total lease liabilities** | **$13,848** | [13. Financing Arrangements](index=26&type=section&id=13.%20Financing%20Arrangements) This note describes new and existing debt facilities, including term loans, note purchase agreements, and their respective terms - On May 15, 2025, the Alerus Loan Parties secured a **$1.1 million Term Loan C** to finance the Royal acquisition, maturing May 15, 2030, with interest at the greater of **5.00%** or 1-month SOFR + **2.25%**[79](index=79&type=chunk) - On May 30, 2025, AAM 24-1 entered into a Third Note Purchase Agreement for a Multiple Advance Senior Secured Note up to **$100.0 million**, with **$40.0 million** advanced to date and an additional **$60.0 million** committed in **$10.0 million** increments through May 2027, bearing **8.5%** annual interest[80](index=80&type=chunk)[81](index=81&type=chunk) Summary of Borrowings (in thousands) | Debt Type | June 30, 2025 | March 31, 2025 | Maturity Date | Interest Rate | | :-------------------------------- | :-------------- | :------------- | :------------ | :-------------------------------- | | Trust Preferred Securities | $35,450 | $35,342 | 6/7/2049 | 8.00% | | Alerus Loan Parties (Total) | $23,406 | $15,877 | Various | Various | | Contrail Debt (Total) | $8,143 | $11,877 | Various | Various | | Wolfe Lake Debt | $8,989 | $9,059 | 12/2/2031 | 3.65% | | Air T Acquisition 22.1 (Total) | $5,903 | $5,880 | Various | Various | | WASI Debt | $280 | $398 | 1/1/2026 | 6.00% | | AAM 24-1 Debt | $40,000 | $30,000 | 5/31/2035 | 8.50% | | MAC Debt | $2,242 | $2,271 | 2/21/2030 | 1-month SOFR + 0.11% + 1.75% | | **Total Debt, net** | **$123,842** | **$110,325** | | | [14. Shares Repurchased](index=30&type=section&id=14.%20Shares%20Repurchased) This note provides information on the company's common stock repurchase program and activity during the quarter - The Company has an authorized program to repurchase up to **1,125,000 shares** of its common stock, with **752,228 shares** remaining available as of June 30, 2025[179](index=179&type=chunk) - No shares were repurchased by the Company during the three months ended June 30, 2025[89](index=89&type=chunk)[180](index=180&type=chunk) [15. Geographical Information](index=30&type=section&id=15.%20Geographical%20Information) This note presents the company's total tangible long-lived assets and operating revenues disaggregated by geographical region Total Tangible Long-Lived Assets, Net (in thousands) | Location | June 30, 2025 | March 31, 2025 | | :------------- | :-------------- | :------------- | | United States | $20,025 | $20,422 | | Foreign | $14,164 | $14,525 | | **Total** | **$34,189** | **$34,947** | Total Operating Revenues by Region (in thousands) | Location | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | | United States | $58,977 | $54,829 | | Foreign | $11,803 | $11,487 | | **Total Revenue** | **$70,870** | **$66,411** | [16. Segment Information](index=31&type=section&id=16.%20Segment%20Information) This note outlines the company's four reportable segments, their revenue from external customers, and segment profit or loss - The Company operates in four reportable segments: Overnight Air Cargo, Commercial Aircraft, Engines and Parts, Ground Support Equipment, and Digital Solutions[97](index=97&type=chunk) - Effective Q4 FY2025, the Company renamed two segments and separately disclosed Digital Solutions to better align with business activities and anticipated long-term growth[95](index=95&type=chunk)[96](index=96&type=chunk) Revenue from External Customers by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Overnight Air Cargo | $30,589 | $30,383 | | Commercial Aircraft, Engines and Parts | $21,960 | $26,250 | | Ground Support Equipment | $15,070 | $7,354 | | Digital Solutions | $2,096 | $1,678 | | **Total Segment Revenue** | **$69,715** | **$65,665** | Segment Profit (Loss) (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Overnight Air Cargo | $1,466 | $1,831 | | Commercial Aircraft, Engines and Parts | $456 | $1,082 | | Ground Support Equipment | $1,338 | $(775) | | Digital Solutions | $(250) | $(464) | | **Total Segment Profit (Loss)** | **$3,010** | **$1,674** | [17. Commitments and Contingencies](index=35&type=section&id=17.%20Commitments%20and%20Contingencies) This note details the company's redeemable non-controlling interests, earnout liabilities, and stock incentive plan - Contrail has a redeemable non-controlling interest (RNCI) with an earnout liability valued at **$1.1 million** as of June 30, 2025, and a put/call option for the remaining **5% interest** commencing April 1, 2026[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Shanwick also has a redeemable non-controlling interest (RNCI) with put/call options exercisable from the fifth anniversary of the shareholder agreement (February 2022), measured at the higher of carrying or redemption value[108](index=108&type=chunk)[109](index=109&type=chunk) - The 2020 Omnibus Stock and Incentive Plan authorized **420,000 shares**, with **199,000 granted options** outstanding as of June 30, 2025; however, no options were exercisable due to unmet market conditions[114](index=114&type=chunk) [18. Guarantees](index=39&type=section&id=18.%20Guarantees) This note describes the company's nonfinancial guarantees for lease agreements and their associated carrying values - The Company may issue nonfinancial guarantees for lease agreements of aircraft assets, with maximum potential payments of **$4.4 million** at June 30, 2025 and March 31, 2025[115](index=115&type=chunk)[117](index=117&type=chunk) - The carrying value of recorded liabilities related to these nonfinancial guarantees was **$0** at both June 30, 2025 and March 31, 2025[117](index=117&type=chunk) [19. Subsequent Events](index=39&type=section&id=19.%20Subsequent%20Events) This note reports on significant events occurring after the balance sheet date, including the sale of aircraft assets - On July 15, 2025, CASP, a **95%-owned subsidiary** of Contrail, completed the sale of two Airbus aircraft and associated engines for over **$18.0 million**, transferring lessor rights and obligations to the purchaser[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition, results of operations, and liquidity for the three months ended June 30, 2025, compared to the prior year, along with an overview of business segments and forward-looking statements [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) This section highlights the inherent uncertainties and risks associated with forward-looking statements in the report - The report contains forward-looking statements that reflect current views on future events and financial performance, subject to uncertainties and factors that could cause actual results to differ materially, including financing, economic conditions, contract risks, and market acceptance[120](index=120&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) [Overview](index=40&type=section&id=Overview) This section provides a high-level introduction to Air T, Inc.'s business model, strategic focus, and core operating segments - Air T, Inc. is a holding company focused on prudently and strategically diversifying its earnings power and compounding the growth in free cash flow per share over time[123](index=123&type=chunk) - The Company operates in four core industry segments: Overnight Air Cargo, Ground Support Equipment, Commercial Aircraft, Engines and Parts, and Digital Solutions[124](index=124&type=chunk)[131](index=131&type=chunk) - Effective as of the fourth quarter of fiscal year 2025, the Company renamed two segments and separately disclosed the Digital Solutions segment to better align with its activities and anticipated long-term growth[126](index=126&type=chunk)[127](index=127&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, expenses, and non-operating items, for the current and prior fiscal quarters [Operating Revenue](index=41&type=section&id=Operating%20Revenue) This section details the consolidated and segment-specific operating revenue changes for the three months ended June 30, 2025 - Consolidated segment revenue for the three-month period ended June 30, 2025, increased by **$4.1 million** (**6.2%**) compared to the same quarter in the prior fiscal year[129](index=129&type=chunk) Revenue by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | :--------- | | Overnight Air Cargo | $30,589 | $30,383 | $206 | 1% | | Ground Support Equipment | $15,070 | $7,354 | $7,716 | 105% | | Commercial Aircraft, Engines and Parts | $21,960 | $26,250 | $(4,290) | (16)% | | Digital Solutions | $2,096 | $1,678 | $418 | 25% | | **Segments total** | **$69,715** | **$65,665** | **$4,050** | **6%** | - Ground Support Equipment revenue increased **105%** due to higher deicing truck sales, while Commercial Aircraft, Engines and Parts revenue decreased **16%** due to lower component sales, partially offset by increased lease income[130](index=130&type=chunk)[132](index=132&type=chunk) - Digital Solutions revenue grew **25%** from new software subscriptions[133](index=133&type=chunk) [Operating Expenses](index=42&type=section&id=Operating%20Expenses) This section analyzes the consolidated and segment-specific operating expense changes for the three months ended June 30, 2025 - Consolidated segment operating expenses for the three-month period ended June 30, 2025, increased by **$2.4 million** (**4.6%**) compared to the same quarter in the prior fiscal year[134](index=134&type=chunk) Operating Expenses by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | | Overnight Air Cargo | $25,899 | $25,709 | $190 | | Ground Support Equipment | $12,303 | $6,533 | $5,770 | | Commercial Aircraft, Engines and Parts | $14,656 | $18,533 | $(3,877) | | Digital Solutions | $836 | $556 | $280 | | **Segments total** | **$53,694** | **$51,331** | **$2,363** | - Ground Support Equipment operating expenses increased **88.3%** due to higher sales, but the percentage increase was less than revenue due to higher margins[135](index=135&type=chunk) - Commercial Aircraft, Engines and Parts operating expenses decreased **20.9%** due to lower component sales and profit margins[136](index=136&type=chunk) - Digital Solutions operating expenses increased **50.4%** due to headcount-related expenses[137](index=137&type=chunk) [General and administrative](index=43&type=section&id=General%20and%20administrative) This section reviews the general and administrative expenses and their proportion of total net sales General and Administrative Expenses (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :-------------------------- | :------------------------------- | :------------------------------- | :----- | | General and administrative | $15,031 | $14,612 | $419 | | Percentage of total net sales | 21% | 22% | | - General and administrative expenses remained relatively flat year-over-year[138](index=138&type=chunk) [Non-operating income (expense)](index=43&type=section&id=Non-operating%20income%20(expense)) This section explains the changes in non-operating income and expense, primarily driven by interest and equity method investments - The Company reported a net non-operating loss of **$1.3 million** during the quarter ended June 30, 2025, compared to net non-operating income of **$0.7 million** in the prior year quarter[139](index=139&type=chunk) - This shift was driven by a **$0.4 million increase** in interest expense and a net loss of **$0.3 million** from equity method investments in the current quarter, compared to a **$1.9 million net income** from equity method investments in the prior year[139](index=139&type=chunk) [Provision for Income Taxes](index=43&type=section&id=Provision%20for%20Income%20Taxes) This section discusses the income tax benefit or expense and effective tax rates for the current and prior fiscal quarters - The Company recorded a **$0.1 million income tax benefit** in Q1 2026 (ETR **16.9%**) versus a **$0.1 million expense** in Q1 2025 (ETR **68.9%**), primarily due to valuation allowances, foreign rate differentials, and the FDII deduction[140](index=140&type=chunk)[142](index=142&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms that no significant changes were made to the company's critical accounting policies and estimates during the quarter - No significant changes were made to the Company's critical accounting policies and estimates during the three months ended June 30, 2025[144](index=144&type=chunk) [Seasonality](index=44&type=section&id=Seasonality) This section addresses the historical seasonal patterns affecting the ground support equipment segment's revenues and operating income - The ground support equipment segment business has historically been seasonal, with revenues and operating income typically lower in the first and fourth fiscal quarters as commercial deicers are usually delivered prior to the winter season[145](index=145&type=chunk) [Systems and Network Security](index=44&type=section&id=Systems%20and%20Network%20Security) This section acknowledges the potential legal, financial, and reputational risks associated with cybersecurity breaches - The Company acknowledges cybersecurity risks, noting that breaches could lead to significant legal and financial liability, reputational harm, and revenue loss, despite employed security measures[146](index=146&type=chunk) [Inflation](index=44&type=section&id=Inflation) This section highlights the material uncertainties and risks posed by future economic developments, including inflation and increased interest rates - Future economic developments, including inflation and increased interest rates, present material uncertainty and risk to the Company's financial condition and results of operations, with issues expected to continue beyond the current fiscal year[147](index=147&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, available credit, working capital changes, and new financing arrangements - As of June 30, 2025, the Company held **$15.0 million** in cash and cash equivalents and restricted cash, with an aggregate of approximately **$29.1 million** in available funds under its lines of credit[148](index=148&type=chunk) - Working capital increased by **$13.0 million** to **$43.9 million** at June 30, 2025, primarily driven by an **$8.5 million increase** in cash, a **$1.4 million increase** in inventory, and a **$3.0 million decrease** in short-term debt[149](index=149&type=chunk) - New financing includes a **$1.1 million Term Loan C** for the Royal acquisition and a Third Note Purchase Agreement for a Multiple Advance Senior Secured Note up to **$100.0 million**, with **$40.0 million** advanced to date and an additional **$60.0 million** committed in increments through May 2027[150](index=150&type=chunk)[151](index=151&type=chunk)[154](index=154&type=chunk) - Management believes it has sufficient cash on hand and available liquidity to meet its obligations for at least 12 months following the financial statements' issuance date[157](index=157&type=chunk) [Cash Flows](index=46&type=section&id=Cash%20Flows) This section analyzes the changes in cash flows from operating, investing, and financing activities for the three months ended June 30, 2025 Changes in Cash Flow (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----- | | Net cash (used in) provided by operating activities | $(1,095) | $113 | $(1,208) | | Net cash (used in) provided by investing activities | $(2,724) | $2,008 | $(4,732) | | Net cash provided by (used in) financing activities | $12,577 | $(1,291) | $13,868 | | **Net Increase in Cash and Cash Equivalents and Restricted Cash** | **$8,466** | **$862** | **$7,604** | - The **$1.2 million decrease** in operating cash flow was primarily due to an unfavorable change in inventory (**$3.8 million**), partially offset by a **$1.6 million increase** in net income after adjustments and **$1.3 million higher** customer deposits[158](index=158&type=chunk) - Net cash used in investing activities increased by **$4.7 million**, driven by **$2.0 million** in investments in unconsolidated entities, the **$1.2 million Royal acquisition**, and **$1.5 million lower** distributions from unconsolidated entities[159](index=159&type=chunk) - Net cash provided by financing activities increased by **$13.9 million**, primarily due to **$16.1 million more** proceeds from term loans and revolving lines of credit, partially offset by **$3.1 million more** payments on revolving lines of credit[160](index=160&type=chunk) [Non-GAAP Financial Measures (Adjusted EBITDA)](index=47&type=section&id=Non-GAAP%20Financial%20Measures%20(Adjusted%20EBITDA)) This section defines Adjusted EBITDA as a non-GAAP measure and provides its reconciliation to operating income and segment-wise breakdown - Adjusted EBITDA, a non-GAAP financial measure, is used to evaluate the Company's financial performance by removing the impact of specific items and adding back interest expense and depreciation/amortization (excluding certain leased assets)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) Reconciliation of Operating Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Operating income (loss) | $446 | $(577) | | Depreciation and amortization (excluding certain leased assets depreciation) | $702 | $760 | | Asset impairment, restructuring or impairment charges | $40 | $378 | | Gain on sale of property and equipment | $(1) | — | | Securities issuance expenses | $30 | $101 | | Share-based compensation | $39 | $16 | | Severance expenses | — | $179 | | Deal-sourcing expenses | $210 | — | | **Adjusted EBITDA** | **$1,466** | **$857** | Adjusted EBITDA by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Overnight Air Cargo | $1,613 | $1,947 | | Ground Support Equipment | $1,374 | $(511) | | Commercial Aircraft, Engines and Parts | $754 | $1,665 | | Digital Solutions | $(86) | $(312) | | Corporate and Other | $(2,189) | $(1,932) | | **Adjusted EBITDA** | **$1,466** | **$857** | [Issuer and guarantor subsidiary summarized information](index=48&type=section&id=Issuer%20and%20guarantor%20subsidiary%20summarized%20information) This section provides details on Air T Funding's Trust Preferred Securities and Air T, Inc.'s guarantee obligations - Air T Funding, a statutory business trust, issues Alpha Income Trust Preferred Securities (**8.0% Cumulative Securities**) which are fully and unconditionally guaranteed by Air T, Inc. on a senior unsecured basis[166](index=166&type=chunk)[167](index=167&type=chunk) - As of June 30, 2025, **$48.5 million** in Trust Preferred Securities are outstanding, with **$13.0 million** held by wholly-owned subsidiaries of the Company[173](index=173&type=chunk) - Air T has the right to defer interest payments on the Junior Subordinated Debentures (which back the Trust Preferred Securities) for up to **20 consecutive quarters**, with restrictions on other payments during such deferral periods[171](index=171&type=chunk)[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Company's Annual Report on Form 10-K for detailed market risk disclosures, stating that there have been no material changes in market risk exposures since March 31, 2025 - The Company's exposures to market risk have not changed materially since March 31, 2025[175](index=175&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, and there were no material changes to internal control over financial reporting during the quarter - The Certifying Officers concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[176](index=176&type=chunk) - There has been no material change in the Company's internal control over financial reporting during the quarter ended June 30, 2025[177](index=177&type=chunk) [PART II -- OTHER INFORMATION](index=50&type=section&id=PART%20II%20--%20OTHER%20INFORMATION) This part includes disclosures on unregistered sales of equity securities, other information, and a list of exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's authorized common stock repurchase program, noting that no shares were repurchased during the quarter ended June 30, 2025 - The Company has an authorized program to repurchase up to **1,125,000 shares** of its common stock, with **752,228 shares** remaining available as of June 30, 2025[179](index=179&type=chunk) - No shares were repurchased by the Company during the quarter ended June 30, 2025[180](index=180&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) This section states that no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by the Company's directors or officers during the quarter ended June 30, 2025 - None of the Company's directors or officers adopted or terminated a 'Rule 10b5-1 trading arrangement' or a 'non-Rule 10b5-1 trading arrangement' during the quarter ended June 30, 2025[181](index=181&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section provides a comprehensive list of all exhibits filed as part of this Quarterly Report on Form 10-Q, including corporate governance documents, financing agreements, and certifications - The report includes a detailed list of exhibits, such as the Restated Certificate of Incorporation, Trust Agreements, Bills of Sale for aircraft, and Section 302/1350 Certifications[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) [Signatures](index=53&type=section&id=Signatures) This section confirms the official signing and submission of the Quarterly Report on Form 10-Q by the registrant, Air T, Inc., through its Chief Financial Officer - The report was duly signed on August 13, 2025, by Tracy Kennedy, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) of Air T, Inc[188](index=188&type=chunk)