Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 87

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 87
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 less than its carrying value, including goodwill. In qualitatively evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances such as macroeconomic conditions, industry and market developments, cost factors, and the overall financial performance of the reporting unit. If, after assessing these events and circumstances, it is determined that there may be an impairment, then a quantitative analysis is performed. In the first step of the quantitative method, recoverability of goodwill is evaluated by estimating the fair value of the reporting unit’s goodwill using multiple techniques, including a discounted cash flow model income approach and a market approach. The estimated fair value is then compared to the carrying value of the reporting unit. The Company will recognize an impairment charge for the amount by which the carrying value of the reporting unit exceeds its fair value, if any.

Goodwill for relevant segments and corporate and other, at original cost, consisted of the following (in thousands):

|                                            |     | Year Ended March 31, |   2025 |     |   |   2024 |
|:-------------------------------------------|:----|:---------------------|-------:|:----|:--|-------:|
| Overnight air cargo                        |     | $                    |     76 |     | $ |     76 |
| Commercial aircraft, engines and parts     |     |                      |  4,227 |     |   |  4,227 |
| Digital solutions                          |     |                      |  6,239 |     |   |  6,237 |
| Total reportable segment goodwill, at cost |     |                      | 10,542 |     |   | 10,540 |
| Corporate and other                        |     |                      |    376 |     |   |    376 |
| Less accumulated impairment                |     |                      |   -376 |     |   |   -376 |
| Goodwill, net of impairment                |     | $                    | 10,542 |     | $ | 10,540 |

As of March 31, 2025, the $ 4.2million goodwill balance in commercial aircraft, engines and parts is attributable to the acquisition of Contrail in July 2016. The $ 6.2million goodwill balance in digital solutions is attributable to the acquisition of Shanwick in February 2022. The $ 0.1million goodwill balance in overnight aircraft cargo is attributable to the