Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 131

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 131
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 purchase the 30.0% interest at the call option price that equals the average EBIT over the threeFinancial Years prior to the exercise of the Call Option multiplied by eight. In addition, the Shanwick Put/Call Option also grants the non-controlling interest owners an option to require the Company to purchase from them their respective ownership interests at the Put Option price, that is equal to the average EBIT over the threeFinancial Years prior to the exercise of the Put Option multiplied by seven and one-half. The Call Option and the Put Option may be exercised at any time from the fifth anniversary of the shareholder agreement and then only at the end of each fiscal year of Air T ("Shanwick RNCI").

The Company has presented the Shanwick RNCI between the liabilities and equity sections of the accompanying condensed consolidated balance sheets. In addition, the Company has elected to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the estimated redemption value at the end of each reporting period. As the Shanwick RNCI will be redeemed at established multiples of EBIT, it is considered redeemable at other than fair value. Changes in its estimated redemption value are recorded on our consolidated statements of operations within non-controlling interests.

The Shanwick RNCI and Contrail RNCI are measured at the higher of their carrying value or redemption value. As of March 31, 2025, the balances were comprised of the following (in thousands):

|                                                      |     | Shanwick RNCI |       |     | Contrail RNCI |        |     | Total |        |
|:-----------------------------------------------------|:----|:--------------|------:|:----|:--------------|-------:|:----|:------|-------:|
| Beginning Balance as of April 1, 2024                |     | $             | 5,540 |     | $             |  7,436 |     | $     | 12,976 |
| Contribution from non-controlling members            |     |               |     — |     |               |      — |     |       |      — |
| Distribution to non-controlling members              |     |               |  -323 |     |               |   -180 |     |       |   -503 |
| Net income attributable to non-controlling interests |     |               |   229 |     |               |    521 |     |       |    750 |
| Other comprehensive income attributable to the