Company: AIRTP
Filing Date: 2025-06-27
Form Type: 10-K
Source: 0000353184-25-000044
Chunk: 117

Company: AIR T INC
Filing Date: 2025-06-27
Form: 10-K
Item: Item 1A
Chunk 117
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 31, 2025. As of March 31, 2025 there were 226,000 granted options that may become exercisable on future vesting dates under the Plan. No options were exercisable as of March 31, 2025.The Company used the Black-Scholes option pricing model to value stock options granted under the Air T's 2020 Omnibus Stock and Incentive Plan and determined the grant date's fair value was $1.3 million. The key assumptions used in the Plan's Black-Scholes option pricing model are as follows:Risk-free interest rate0.94 %Expected dividend yield— Expected term10 yearsExpected volatility44.29 %We do not anticipate significant forfeitures and elected to account for forfeitures as they occur. During fiscal years ended March 31, 2025 and 2024, total compensation cost recognized under the Plan for each year was $0.1 million. The unrecognized compensation cost related to nonvested awards is $0.4 million, which is expected to be recognized over a weighted average period of 6.25 years.

15.    REVENUE RECOGNITION

Performance ObligationsSubstantially all of the Company’s non-lease revenue is derived from contracts with an initial expected duration of one year or less. As a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations.

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The following is a description of the Company’s performance obligations as of March 31, 2025:Type of RevenueNature, Timing of Satisfaction of Performance Obligations, and Significant Payment TermsProduct SalesThe Company generates revenue from sales of various distinct products such as parts, aircraft equipment, printing equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation.The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price