Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 73

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 73
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5, the Company owned 487,000 Lendway shares, representing approximately 27.5% of Lendway's outstanding shares.On August 15, 2024, the Company entered into a delayed draw term loan with Lendway for up to $2.5 million with an interest rate of 8.0%. On September 27, 2024 the borrowing limit was increased to $3.5 million. On January 15, 2025 the borrowing limit was further increased to $3.8 million and as of March 31, 2025, $3.8 million has been drawn. All outstanding principal and accrued interest will become due and payable to the Company on the maturity date, which is the earlier of August 15, 2029 or by written demand of the Company after February 15, 2026. Prior to the maturity, Lendway may prepay any accrued interest or principal outstanding without penalty. As of June 30, 2025, $3.4 million of the principal balance remains outstanding and $0.2 million of interest has been accrued.Cadillac Casting, Inc. investmentThe Company's 20.1% investment in Cadillac Casting, Inc. ("CCI") is accounted for under the equity method of accounting. Due to the differing fiscal year-ends, the Company has elected a three-month lag to record the CCI investment at cost, with a basis difference of $0.3 million. The Company's net investment basis in CCI is $3.9 million as of  June 30, 2025.CCI and Lendway's combined summarized unaudited financial information for the three months ended March 31, 2025 and 2024 is as follows (in thousands):Three Months EndedMarch 31, 2025March 31, 2024Revenue$41,670 $45,757 Gross Profit5,363 6,006 Operating income1,685 1,206 Net income$368 $1,102 Crestone Asset Management, LLC investmentOn May 5, 2021, the Company formed an aircraft asset management business called Crestone Asset Management, LLC ("CAM"), formerly known as Contrail Asset Management LLC, and an aircraft capital joint venture called Crestone JV II LLC ("CJVII"), 

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formerly known as Contrail JV II LLC. The venture focuses on acquiring commercial aircraft and jet engines for leasing,