Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 43

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 43
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Variable lease cost263 247 725 610 Total lease cost$1,361 $965 $3,824 $3,135 Amounts reported in the consolidated balance sheets for leases where we are the lessee as of December 31, 2024 and March 31, 2024 were as follows (in thousands):December 31, 2024March 31, 2024Operating leasesOperating lease ROU assets$13,597 $11,376 Operating lease liabilities$14,557 $12,276 Weighted-average remaining lease termOperating leases10 years, 5 months12 years, 1 monthWeighted-average discount rateOperating leases5.64 %5.09 %    During the nine months ended December 31, 2024, the Company had ROU assets that were obtained in exchange for new operating lease liabilities in the amount of $3.8 million.Maturities of lease liabilities under non-cancellable leases where we are the lessee as of December 31, 2024 are as follows (in thousands):Operating Leases2025 (excluding the nine months ended December 31, 2024)$777 20263,030 20272,892 20282,275 20291,722 2030977 Thereafter7,669 Total undiscounted lease payments19,342 Interest(4,785)Total lease liabilities$14,557 

18

12.    Financing Arrangements

Borrowings of the Company and its subsidiaries are summarized below at December 31, 2024 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., a corporation owned by the Chief Executive Officer of Contrail, Joe Kuhn (the “Seller”). 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 $4.6 million, 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-month period of