Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 13

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 13
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 of $15.0 million and a Quarterly Cash Flow Coverage of not less than 1.25 to 1.0. In order to induce ONB to enter into these agreements, Contrail and OCAS, Inc. entered into a subordination agreement dated September 12, 2024 to address certain loan matters and to establish the priority of repayment of Contrail’s debt to ONB over the OCAS Loan in the original principal amount of $4.6 million.

As mentioned in Note 12 of Notes to Condensed Consolidated Financial Statements included under Part I, Item 1 of this Report on Form 10-Q, on October 16, 2024, the Company and AAM 24-1 entered into the Second NPA with Honeywell. The Second NPA amended and restated the terms of the Company’s previously disclosed Original NPA, which was filed in a Current Report on Form 8-K on February 26, 2024. Under the Original NPA, AAM 24-1 had issued and sold $15.0 million of 8.5% senior secured notes. The Second NPA amended and restated the amount issued and sold to $30.0 million of 8.5% Notes to Honeywell, which includes the $15.0 million from the Original NPA bringing the total indebtedness to $30.0 million. The Notes mature on March 1, 2031 and bear an annual interest at a rate of 8.5%. In addition to the 160,000 previously pledged TruPs, 160,000 newly-issued shares of TruPs held by AAM 24-1 are now pledged to Honeywell, in connection with the closing of the Second NPA.

The Company believes that it has sufficient cash on hand and available liquidity, to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued.

33

Cash Flows

Following is a table of changes in cash flow for the nine months ended December 31, 2024 and 2023 (in thousands):

Nine Months Ended December 31,20242023Net cash provided by operating activities$19,377 $23,145 Net cash (used in) provided by investing activities(16,800)219 Net cash provided by (used in) financing activities7,987 (25,151)Effect of foreign currency exchange rates