Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 14

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 1A
Chunk 14
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 to meet customer needs.

•Liens on our engines or aircraft could exceed the value of such assets, which could negatively affect our ability to repossess, lease or sell a particular engine or aircraft.

•In certain countries, an engine affixed to an aircraft may become an addition to the aircraft and we may not be able to exercise our ownership rights over the engine.

•Higher or volatile fuel prices could affect the profitability of the aviation industry and our lessees’ ability to meet their lease payment obligations to us.

•Interruptions in the capital markets could impair our lessees’ ability to finance their operations, which could prevent the lessees from complying with payment obligations to us.

•Our lessees may fail to adequately insure our aircraft or engines which could subject us to additional costs.

•If our lessees fail to cooperate in returning our aircraft or engines following lease terminations, we may encounter obstacles and are likely to incur significant costs and expenses conducting repossessions.

•If our lessees fail to discharge aircraft liens for which they are responsible, we may be obligated to pay to discharge the liens.

•If our lessees encounter financial difficulties and we restructure or terminate our leases, we are likely to obtain less favorable lease terms.

•Withdrawal, suspension or revocation of governmental authorizations or approvals could negatively affect our business.

Risks Related to Air T Funding

•The ranking of the Company’s obligations under the Junior Subordinated Debentures and the Guarantee creates a risk that Air T Funding may not be able to pay amounts due to holders of the Trust Preferred Securities.

•The Company has the option to extend the Trust Preferred Securities interest payment period.

•Tax event or investment company act redemption of the Trust Preferred Securities.

•The Company may cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.

•There are limitations on direct actions against the Company and on rights under the guarantee.

•The covenants in the Indenture are limited.

•Holders of the Trust Preferred Securities have limited voting rights.

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RISKS RELATED TO THE COMPANY

General Business Risks

Market fluctuations may affect our operations.

Market fluctuations may affect our ability to obtain funds necessary for the operation of our businesses from current lenders or new borrowings. In addition, we may be unable to obtain financing on satisfactory terms, or at all. Market studies or demographics we have reviewed also may no longer be accurate or complete. The occurrence of any of