Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 278

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 8
Chunk 278
---
 at March 31, 2025. These net operating losses will begin to expire in tax year 2031. The Company has foreign tax credits of $0.5 million that will begin to expire in tax year 2029.Deferred tax assets and liabilities were comprised of the following (in thousands):

81

Year Ended March 31,20252024Net operating loss & attribute carryforwards$11,681 $9,414 Unrealized losses on investments1,540 1,055 Inventory reserve1,149 1,041 Accrued vacation442 449 Foreign tax credit520 650 Lease liabilities3,463 2,913 Research and development capitalizations441 275 Other deferred tax assets792 517 Total deferred tax assets20,028 16,314 Property and equipment(1,651)(1,735)Right-of-use assets(3,236)(2,703)Capital gain deferment(1,793)(1,763)Foreign intangible assets(1,830)(2,089)Investment in partnerships(2,159)(105)Other deferred tax liabilities(403)(393)Total deferred tax liabilities(11,072)(8,788)Net deferred tax assets8,956 7,526 Less valuation allowance(11,103)(9,973)Net deferred tax liabilities$(2,147)$(2,447)The Company is not asserting indefinite reinvestment with regards to foreign earnings in the Netherlands. The Company has not recorded deferred taxes associated with these undistributed earnings as the impact of any future distribution will not have a material tax impact. The Company continues to assert that it will permanently reinvest all other foreign earnings, including basis differences of all the Company's foreign subsidiaries. As a result of its permanent reinvestment assertion, the Company has not recorded deferred taxes related to its foreign subsidiaries under the indefinite exception. The Company has not determined the deferred tax liability associated with these undistributed earnings and basis differences, as such determination is not practicable.Valuation AllowanceManagement assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended March 31, 2025. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of March 31, 202