Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 98

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 98
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 than the percentage increase in segment revenue due to higher margins on the deicing trucks sold in the current quarter.

The commercial aircraft, engines and parts segment contributed $14.7 million and $18.5 million to the Company's operating expenses for the three-month period ended June 30, 2025 and 2024, respectively, representing a $3.9 million (20.9%) decrease in the current quarter. Lower component sales, coupled with lower profit margin on parts sold in the current quarter resulted in the decrease in operating expenses and percentage of segment net sales.

The digital solutions segment contributed $0.8 million of operating expenses in the quarter ended June 30, 2025 compared to $0.6 million in the prior year quarter, an increase of $0.3 million (50.4%). The increase was primarily due to an increase in headcount-related expenses to support the increased revenue from the continued acquisition of new customers.

General and administrative

40

Three Months EndedJune 30,Change20252024General and administrative$15,031 $14,612 $419 Percentage of total net sales21 %22 %

General and administrative expenses for the three-month period ended June 30, 2025 were relatively flat compared to the first quarter of the prior fiscal year.

Non-operating income (expense)

Following is a table detailing non-operating income (expense) during the three months ended June 30, 2025 compared to the same quarter in the prior fiscal year (in thousands):

Three Months EndedJune 30,Change20252024Interest expense$(2,314)$(1,946)$(368)(Loss) Income from equity method investments(19)1,923 (1,942)Earnout remeasurement income402 20 382 Other678 683 (5)$(1,253)$680 $(1,933)

The Company had 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. The non-operating loss in the current year was driven by a $0.4 million increase in interest expense and a net loss of $0.3 million in the current year compared to a net income of $1.9 million in the prior year allocated to the Company from equity method investments, as detailed in Note 9 of the Notes to Condensed Consolidated Financial Statements in Part