Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 76

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 76
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2024Lendway$— $— CCI— — CAM829 1,626 Other equity method investments298 933 Total$1,127 $2,559 

10.    Inventories

Inventories consisted of the following (in thousands):June 30,2025March 31,2025Inventories:Raw Materials$7,275 $6,928 Work in process3,078 2,342 Finished Goods4,084 5,358 Aircraft parts30,440 28,794 Total inventories44,877 43,422 Reserves(4,991)(4,906)Total inventories, net of reserves$39,886 $38,516 

11.     Lessor Arrangements

Equipment LeasesThe Company leases equipment to third-parties, primarily through Contrail. Leases for aircraft and engines to aviation customers typically have terms ranging from 1 and 4 years under operating lease agreements. On August 26, 2024, Contrail executed the operating agreement for CASP Leasing 1, LLC ("CASP"), a newly-created and 95% owned subsidiary of Contrail. On August 29, 2024, CASP entered into two purchase agreements to acquire and subsequently lease two Airbus Model A321-111 aircraft. The lease term for these two leased assets ends December 31, 2027. For the assets currently on lease, there are no options for the lessees to purchase the assets at the end of the lease term. The Company depreciates the aircraft and engines on a straight-line basis over the assets' useful life from the acquisition date to an estimated residual value. During the three months ended June 30, 2025 and 2024, the Company recognized depreciation expense relating to equipment leases of $0.6 million and $0.1 million, respectively.Future minimum rental payments to be received do not include contingent rentals that may be received under certain leases because amounts are based on usage. During the three months ended June 30, 2025, earned contingent rent on equipment leases totaled approximately $0.5 million. The Company had no contingent rent earned on equipment leases during the three months ended June 30, 2024. As of June 30, 2025, future minimum rental payments to be received under non-cancelable leases are as follows (in thousands):

24

Year ended March 31