Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 17

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 17
---
 our ability to re-lease the engines and aircraft in a timely manner following termination of the leases.

• We may experience losses and delays in connection with repossession of engines or aircraft when a lessee defaults.

• Our commercial aircraft, engines and parts segment and its customers operate in a highly regulated industry and changes in laws or regulations may adversely affect our ability to lease or sell our engines or aircraft.

• Our aircraft, engines and parts could cause damage resulting in liability claims.

• We have risks in managing our portfolio of aircraft and engines to meet customer needs.

• Liens on our engines or aircraft could exceed the value of such assets, which could negatively affect our ability to repossess, lease or sell a particular engine or aircraft.

• In certain countries, an engine affixed to an aircraft may become an addition to the aircraft and we may not be able to exercise our ownership rights over the engine.

• Higher or volatile fuel prices could affect the profitability of the aviation industry and our lessees’ ability to meet their lease payment obligations to us.

• Interruptions in the capital markets could impair our lessees’ ability to finance their operations, which could prevent the lessees from complying with payment obligations to us.

• Our lessees may fail to adequately insure our aircraft or engines which could subject us to additional costs.

• If our lessees fail to cooperate in returning our aircraft or engines following lease terminations, we may encounter obstacles and are likely to incur significant costs and expenses conducting repossessions.

• If our lessees fail to discharge aircraft liens for which they are responsible, we may be obligated to pay to discharge the liens.

• If our lessees encounter financial difficulties and we restructure or terminate our leases, we are likely to obtain less favorable lease terms.

• Withdrawal, suspension or revocation of governmental authorizations or approvals could negatively affect our business.

#### Risks Related to Air T Funding
• The ranking of the Company’s obligations under the Junior Subordinated Debentures and the Guarantee creates a risk that Air T Funding may not be able to pay amounts due to holders of the Trust Preferred Securities.

• The Company has the option to extend the Trust Preferred Securities interest payment period.

• Tax event or investment company act redemption of the Trust Preferred Securities.

• The Company may cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.

• There are limitations on direct actions against the Company and on rights under the guarantee.

• The coven