Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 362

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 8
Chunk 362
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ance Costs(379)$110,325 The Company assumes various financial obligations and commitments in the normal course of its operations and financing activities. Financial obligations are considered to represent known future cash payments that the Company is required to make under existing contractual arrangements such as debt and lease agreements.Fair Value of Debts - The following table presents the carrying amounts and estimated fair values of the Company’s debt instruments, which are not measured at fair value on a recurring basis, as of March 31, 2025 and 2024:(in thousands)March 31, 2025March 31, 2024Carrying Value $75,362 $79,245 Estimated Fair Value$92,984 $90,248 The fair value of the Company’s debt was estimated using discounted cash flow models based on current market interest rates for debt instruments with similar terms, maturities, and credit risk. These estimates utilize Level 2 inputs within the fair value hierarchy.As of March 31, 2025 and March 31, 2024, the estimated fair value exceeded the carrying value primarily due to certain outstanding borrowings bearing contractual interest rates that are above current market rates, which results in higher present values of future cash flows. The smaller differential in the prior year reflects changes in interest rate environments and debt structure.The Company has not elected the fair value option under ASC 825-10 and continues to report its debt obligations at amortized cost. The fair value amounts are presented for disclosure purposes only.Interest Expense, netThe components of net interest expense during the years ended March 31, 2025 and March 31, 2024 are as follows (in thousands):March 31, 2025March 31, 2024Contractual interest$8,606 $6,688 Amortization of deferred financing costs323 324 Gain on interest rate swaps(167)(4)Interest income(375)(92)Total$8,387 $6,916 Net interest expense by entity during the years ended March 31, 2025 and March 31, 2024 are as follows (in thousands):

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Year Ended March 31, 20252024Air T$3,380 $3,818 Jet Yard31 78 Alerus Loan Parties997 — Contrail1,316 1,570 AirCo 1378 561 Wolfe Lake345 356 Air T Acquisition 22.1277