Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 95

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 95
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 and the discounted future fixed cash payments. The variable cash receipts are based on an expectation of future interest rates derived from observed market interest rate forward curves. Since these inputs are observable in active markets over the terms that the instruments are held, the derivatives are classified as Level 2 in the hierarchy. See Note 8 .

The fair value of Contrail's earnout is valued using an income approach and is classified as Level 3 in the hierarchy. See Note 21 .

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, 2025 and 2024.

4. INVENTORIES

Inventories consisted of the following (in thousands):

|                                    |     | Year Ended March 31, |   2025 |     |   |   2024 |
|:-----------------------------------|:----|:---------------------|-------:|:----|:--|-------:|
| Inventories:                       |     |                      |        |     |   |        |
| Raw materials                      |     |                      |  6,928 |     |   |  6,174 |
| Work in process                    |     |                      |  2,342 |     |   |  5,244 |
| Finished goods                     |     |                      |  5,358 |     |   |  4,387 |
| Aircraft parts                     |     |                      | 28,794 |     |   | 49,522 |
| Total inventories                  |     |                      | 43,422 |     |   | 65,327 |
| Reserves                           |     |                      | -4,906 |     |   | -4,607 |
| Total inventories, net of reserves |     | $                    | 38,516 |     | $ | 60,720 |

A write-down of $ 1.5million was recorded on the inventory of the commercial aircraft, engines and parts segment during the fiscal year ended March 31, 2025. The write-down was attributable to our evaluation of the carrying value of inventory as of March 31, 2025, where we compared its cost to its net realizable value and considered factors such as physical condition, sales patterns and expected future demand to estimate the amount necessary to write down any slow moving, obsolete or damaged inventory.

5. LESSOR ARRANGEMENTS

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