Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 88

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 88
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 acquisition of WASI in January 2023. The minimal increase from the prior fiscal year's balance to the current fiscal year's balance is attributable to foreign currency translation adjustments related to the goodwill balance at Shanwick.

Based on the results of our annual assessment of qualitative factors conducted as of March 31, 2025, management determined that it was more likely than not that the fair value of our reporting units exceeded its carrying value, including goodwill.

Intangible Assets – Amortizable intangible assets consist of acquired patents, tradenames, customer relationships, and other finite-lived identifiable intangibles. Such intangibles are initially recorded at fair value and subsequently subject to amortization. Amortization is recorded using the straight-line method over the estimated useful lives of the assets. In accordance with the applicable accounting guidance, the Company evaluates the recoverability of amortizable intangible assets whenever events occur that indicate potential impairment. In doing so, the Company assesses whether the carrying amount of the asset is unrecoverable by estimating the sum of the future cash flows expected to result from the asset, undiscounted and without interest charges. If the carrying amount is more than the recoverable amount, an impairment charge must be recognized based on the estimated fair value of the asset.

The estimated amortizable lives of the intangible assets are as follows:

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|                                      |     |           Years |
| Purchased software                   |     |               3 |
| Internally developed software        |     |           10-15 |
| In-place lease and other intangibles |     | Over lease term |
| Trade names                          |     |               5 |
| Certification                        |     |               5 |
| Non-compete                          |     |               5 |
| License                              |     |               5 |
| Patents                              |     |               9 |
| Customer relationships               |     |           10-15 |

Property and Equipment and Assets on Lease or Held for Lease – Property and equipment is stated initially at cost, or fair value if purchased as part of a business combination. Depreciation and amortization are provided on a straight-line basis over the asset’s useful life. Equipment leased to customers is depreciated using the straight-line method. Useful lives range from three yearsfor computer equipment, seven yearsfor flight equipment, ten yearsfor deicers and other equipment leased to customers and thirty yearsfor buildings.

Engine assets on lease or held for lease are stated at cost, less accumulated depreciation.