Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 68

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 68
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 to product sales. The following table presents outstanding contract liabilities as of April 1, 2025 and June 30, 2025 and the amount of contract liabilities that were recognized as revenue during the three-month period ended June 30, 2025 (in thousands):Outstanding contract liabilitiesOutstanding contract liabilities as of April 1, 2025Recognized as RevenueAs of June 30, 2025$7,781 As of April 1, 2025$4,199 For the three months ended June 30, 2025$(1,577)

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4.     Accrued Expenses and Other

(In thousands)June 30, 2025March 31, 2025Salaries, wages and related items$6,477 $6,235 Profit sharing and bonus827 2,980 Other Deposits2,965 513 Deferred Income4,816 3,686 Accrued insurance payable2,949 1,336 Other2,589 1,941 Total$20,623 $16,691 

5.    Income Taxes

During the three-month period ended June 30, 2025, the Company recorded $0.1 million in income tax benefit at an effective rate ("ETR") of 16.9%. The Company has computed the provision for income taxes based on the estimated annual effective tax rate excluding loss jurisdictions with no tax benefit and the application of discrete items, if any, for interim reporting. The primary factors contributing to the difference between the federal statutory rate of 21.0% and the Company's effective tax rate for the three-month period ended June 30, 2025 were the valuation allowance related to the Company’s U.S. consolidated group, Delphax Technologies, Inc. (“DTI”), and Delphax Solutions, Inc. ("DSI"), the foreign rate differentials for Air T’s operations located in the Netherlands and Puerto Rico, and the benefit from the Foreign-Derived Intangible Income ("FDII") deduction. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which includes a broad range of tax reform provisions affecting businesses. The Company is evaluating the full effects of the legislation on its estimated annual effective tax rate and cash tax position, but does not expect the legislation to have a material impact on its financial statements. Because the law was enacted after the end