Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 323

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 8
Chunk 323
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 expected profit margins and to project sales patterns, expected future demand and costs to refurbish, auditing such estimates required a high degree of auditor judgment and an increased extent of effort when performing audit procedures and evaluating the results of those procedures

How the Critical Audit Matter Was Addressed in the Audit

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Our audit procedures related to expected profit margins utilized in the relief of inventory, and related to the sales patterns, expected future demand and costs to refurbish used in estimating the net realizable value of inventory, included the following, among others:

•We assessed the reasonableness of management’s estimates of expected profit margins for a representative sample of inventories by:

◦Comparing the life-to-date profit margin on sales from the group of parts to management’s initial profit margin assessment. 

◦Evaluating the reasonableness of management’s judgments about changes to the initial profit margin estimates, if any.

•We assessed the reasonableness of management’s projections of sales patterns, expected future demand and costs to refurbish by:

◦Comparing the information to historical results of those business units.

◦Evaluating the methodology and assumptions used by, and the qualifications of, the Company’s third-party valuation specialist.

◦Performing the following procedures for a representative sample of inventories:

◦Evaluating the key assumptions underlying the valuation by examining recent sales of comparable parts and component condition.

◦Utilizing historical costs to develop an independent estimate of costs necessary to refurbish the parts.

▪We compared management’s assumptions to market data and industry forecasts.

/s/ Deloitte & Touche LLP 

Minneapolis, Minnesota  

June 27, 2025

We have served as the Company's auditor since 2018.

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AIR T, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS)Year Ended March 31,(In thousands, except per share data) 20252024Operating Revenues:Overnight air cargo$124,031 $115,546 Ground support equipment38,940 37,168 Commercial aircraft, engines and parts118,215 125,535 Digital solutions7,268 5,783 Corporate and other3,396 2,802 291,850 286,834 Operating Expenses:Overnight air cargo104,760 97,690 Ground support equipment33,994 31,834 Commercial aircraft, engines and parts84,896 99,222 Digital solutions2