Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 79

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 79
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$13,274 Operating lease liabilities$13,848 $14,220 Weighted-average remaining lease termOperating leases10 years, 2 months10 years, 3 monthsWeighted-average discount rateOperating leases5.68 %5.67 %    During the three months ended June 30, 2025, the Company had ROU assets that were obtained in exchange for new operating lease liabilities in the amount of $0.2 million.The Company has an operating lease between entities under common control where the useful life of certain leasehold improvements exceeds the related lease term. As of June 30, 2025, the remaining lease term on the operating lease was 4 years, 5 months and the useful life of leasehold improvements that exceeded the lease term ranged from 4 years, 7 months to 4 years, 11 months. As of June 30, 2025, the unamortized balance of such leasehold improvements was $0.2 million.Maturities of lease liabilities under non-cancellable leases where we are the lessee as of June 30, 2025 are as follows (in thousands):Operating Leases2026 (excluding the three months ended June 30, 2025)$2,450 20273,065 20282,358 20291,750 2030977 Thereafter7,669 Total undiscounted lease payments18,269 Interest(4,421)Total lease liabilities$13,848 

13.    Financing Arrangements

Borrowings of the Company and its subsidiaries are summarized below at June 30, 2025 and March 31, 2025, respectively.

26

In connection with the acquisition of Royal on May 15, 2025, Air'Zona, CSA, GGS, MAC, WASI, Worthington, Jet Yard, and Jet Yard Solutions ("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,