Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 121

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 1A
Chunk 121
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21.0 %$(831)21.0 %Foreign rate differential(101)2.0 %399 -10.1 %State income taxes, net of federal benefit(165)3.3 %(125)3.2 %Micro-captive insurance benefit— 0.0 %(306)7.7 %Change in valuation allowance1,272 -25.5 %1,909 -48.3 %Income attributable to minority interest - Contrail(140)2.8 %(217)5.5 %Other differences, net605 -12.1 %(100)2.5 %Income tax expense$423 -8.5 %$729 -18.5 %The Company did not record any liabilities for uncertain tax positions for the fiscal years ended March 31, 2025 and March 31, 2024.The Tax Cuts and Jobs Act (the "Tax Act") provides for a territorial tax system, that includes the global intangible low-taxed income (“GILTI”) provision beginning in 2018. The GILTI provisions require us to include in our U.S. income tax return certain current year foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. There was no GILTI inclusion for the fiscal years ended  March 31, 2025 and March 31, 2024.The Company (exclusive of Delphax which has a full valuation allowance) has federal gross operating losses of $11.3 million and state gross operating losses of $15.7 million, and foreign gross operating losses of $7.6 million 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