Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 41

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 41
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 from the acquisition date to an estimated residual value. During the three and nine months ended December 31, 2024, the Company recognized depreciation expense relating to equipment leases of $0.6 million and $0.9 million, respectively. Depreciation expense relating to equipment leases for the three and nine months ended December 31, 2023 was not material.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 respective three and nine months ended December 31, 2024, earned contingent rent on equipment leases totaled approximately $0.7 million. The Company had no contingent rent earned on equipment leases during the three and nine months ended December 31, 2023. As of December 31, 2024, future minimum rental payments to be received under non-cancelable leases are as follows (in thousands):Year ended March 31,2025 (excluding the nine months ended December 31, 2024)$480 20263,349 20273,317 20282,843 Thereafter— Total$9,989 Office leasesThe Company, through its wholly owned subsidiary, Wolfe Lake, leases offices to third parties with lease terms between 5 and 29 years under operating lease agreements. For the offices currently on lease, there are no options for the lessees to purchase the spaces at the end of the leases. Our contractual obligations for offices currently on lease can include termination and renewal options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. The Company depreciates the assets on a straight-line basis over the assets' useful life. During the three months ended December 31, 2024 and 2023, depreciation expense relating to office leases was $0.1 million. During the nine months ended December 31, 2024 and 2023, depreciation expense relating to office leases was $0.2 million.During the three and nine months ended December 31, 2024, the Company recognized rental and other revenues related to operating lease payments of $0.4 million and $1.3 million, respectively, of which variable lease payments were $0.2 million and $0.6 million, respectively. During the three and nine months ended December 31, 2023, the Company recognized rental and other revenues related to operating lease payments of $0.4 million and $1.2 million, respectively, of which variable lease payments