Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 119

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 1A
Chunk 119
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 recognized each month on a straight-line basis according to the consideration paid by the customer for the given time period. Generally, subscription terms are in annual increments and, when a subscription term begins, an annual fee is remitted by the customer to cover the 12-month period. The cash received is recorded as deferred revenue for the amount stated in the contract and recognized over the subscription term based on straight-line recognition.For cloud hosted software, the Company enters into service contracts which provides access to the software and customer support services. A performance obligation is created when the Company agrees to provide a particular service to a customer. For software access, revenue is recognized ratably over time for the daily performance obligation related to the customer's access to the cloud hosted software. For support services, revenue is recognized over time for the hourly performance obligation provided to the customer. Generally, subscription terms range from three to five years. Software access is usually billed monthly and support services are billed upon completion.

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The following table summarizes disaggregated revenues by type (in thousands):Year Ended March 31,20252024Product SalesOvernight air cargo$42,615 $39,302 Ground support equipment35,903 36,127 Commercial aircraft, engines and parts106,946 114,049 Corporate and other661 739 Support ServicesOvernight air cargo81,287 76,107 Ground support equipment2,426 533 Commercial aircraft, engines and parts7,923 10,727 Corporate and other31 36 Leasing RevenueGround support equipment69 49 Commercial aircraft, engines and parts2,597 64 Corporate and other1,713 1,624 Software ServicesDigital Solutions7,268 5,783 OtherOvernight air cargo129 137 Ground support equipment542 459 Commercial aircraft, engines and parts749 695 Corporate and other991 403 Total$291,850 $286,834 See Note 18 for the Company's disaggregated revenues by geographic region and Note 19 for the Company’s disaggregated revenues by segment. These notes disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.Contract Balances and CostsContract liabilities relate to deferred revenue, our unconditional right to receive consideration in advance of performance with respect to subscription revenue and advanced customer deposits with respect to product sales. The following table presents outstanding contract liabilities as of April 1,