Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 67

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 67
---
 the consideration paid by the customer for the given time period. Generally, subscription terms are in annual increments and, when a subscription term begins, an annual fee is remitted by the customer to cover the 12-month period. The cash received is recorded as deferred revenue for the amount stated in the contract and recognized over the subscription term based on straight-line recognition.For cloud hosted software, the Company enters into service contracts which provides access to the software and customer support services. A performance obligation is created when the Company agrees to provide a particular service to a customer. For software access, revenue is recognized ratably over time for the daily performance obligation related to the customer's access to the cloud hosted software. For support services, revenue is recognized over time for the hourly performance obligation provided to the customer. Generally, subscription terms range from three years to five years. Software access is usually billed monthly and support services are billed upon completion.Leasing RevenueLeasing revenue is recognized in accordance with ASC Topic 842. Refer to Note 11 for further details regarding the Company's leasing revenue.The following table summarizes disaggregated revenues by type (in thousands):Three Months Ended June 30,20252024Product SalesOvernight air cargo$12,476 $9,699 Ground support equipment14,337 7,128 Commercial aircraft, engines and parts17,760 23,619 Corporate and other167 119 Support ServicesOvernight air cargo17,992 20,658 Ground support equipment419 166 Commercial aircraft, engines and parts2,242 2,199 Corporate and other16 14 Leasing RevenueGround support equipment— 15 Commercial aircraft, engines and parts1,755 39 Corporate and other455 464 Software ServicesDigital Solutions2,096 1,678 OtherOvernight air cargo121 26 Ground support equipment314 45 Commercial aircraft, engines and parts203 393 Corporate and other517 149 Total$70,870 $66,411 See Note 15 for the Company's disaggregated revenues by geographic region and Note 16 for the Company’s disaggregated revenues by segment. These notes disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

17

Contract Balances and CostsContract liabilities relate to deferred revenue, our unconditional right to receive consideration in advance of performance with respect to subscription revenue and advanced customer deposits with respect