Company: AIRTP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000353184-25-000126
Chunk: 44

Company: AIR T INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 44
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 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 the lease payments in a similar economic environment.The components of lease cost for the three and six months ended September 30, 2025 and 2024 are as follows (in thousands):

23

Three Months Ended September 30,Six Months Ended September 30,2025202420252024Operating lease cost$874 $749 $1,715 $1,418 Short-term lease cost232 289 571 583 Variable lease cost252 236 499 462 Total lease cost$1,358 $1,274 $2,785 $2,463 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of September 30, 2025 and March 31, 2025 were as follows (in thousands):September 30, 2025March 31, 2025Operating leasesOperating lease ROU assets$12,269 $13,274 Operating lease liabilities$13,216 $14,220 Weighted-average remaining lease termOperating leases10 years, 3 months10 years, 3 monthsWeighted-average discount rateOperating leases5.68 %5.67 %    During the six months ended September 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 September 30, 2025, the remaining lease term on the operating lease was four years, two months   and the useful life of leasehold improvements that exceeded the lease term ranged from four years, four months to