Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 107

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 107
---
| 2028                              |   |  2,344 |                  |
| 2029                              |   |  1,745 |                  |
| 2030                              |   |    977 |                  |
| Thereafter                        |   |  7,669 |                  |
| Total undiscounted lease payments |   | 18,829 |                  |
| Interest                          |   | -4,609 |                  |
| Total lease liabilities           | $ | 14,220 |                  |

12. FINANCING ARRANGEMENTS

Borrowings of the Company and its subsidiaries are summarized below at March 31, 2025 and March 31, 2024, respectively.

On May 30, 2024, Contrail, a majority-owned subsidiary of the Company, entered into a Membership Interest Redemption and Earnout Agreement (the "Redemption Agreement") with OCAS, Inc. (the "Seller"), the minority owner of Contrail. Pursuant to the Redemption Agreement, Contrail agreed to purchase and redeem from the Seller, 16% of its 21% interest in Contrail, effective as of April 1, 2024. The purchase price for the redeemed interest is $ 4.6million, plus an earnout amount. The cash purchase price is payable pursuant to a secured, subordinated promissory note ("OCAS Loan"), payable beginning on May 1, 2024 and monthly thereafter for a 12-monthperiod of interest payments only with the outstanding balance amortized and paid over the following three years. Interest accrues on the principal amount at an annual rate equal to the 10-yearTreasury bond yield plus 375basis points, compounded monthly. The rate adjusts on each anniversary date of the note. The payment obligation under the note may be deferred if Contrail’s forecast indicates that any payment following the first 12-monthperiod would cause a loan default or a loan default exists. Initially, the payment obligation would revert back to interest only, unless a

<div align='center'>70</div>

default exists, in which case no payment would be required. If Contrail is unable to make a payment for 12months, then interest shall cease to accrue. The note is expressly subordinated to the payment in full of all indebtedness of Contrail on or prior to the date of the note or thereafter. The OCAS Loan is classified as related party debt on the Company's condensed consolidated balance sheet. As a result,