Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 20

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 20
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 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.

25

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 months ended June 30, 2025 and 2024 are as follows (in thousands):Three Months Ended June 30,20252024Operating lease cost$841 $668 Short-term lease cost279 294 Variable lease cost246 226 Total lease cost$1,366 $1,188 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of June 30, 2025 and March 31, 2025 were as follows (in thousands):June 30, 2025March 31, 2025Operating leasesOperating lease ROU assets$12,898 $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