Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 34

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 34
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 the options agreements (the "market condition"). If the market condition is not fulfilled at the annual vesting period on June 30 of every year, the vested awards may not be exercisable at any subsequent point and are forfeited. On the preceding four vesting dates, June 30, 2025, 2024, 2023 and 2022, a total of 128,000 shares satisfied the service condition; however, they did not meet the market condition to become exercisable. For the three months ended June 30, 2025 and June 30, 2024, 21,000 unvested shares and 8,000 unvested shares, respectively, were forfeited due to employee departures. No expense reversal from forfeiture of options due to employee departures was recorded during the three months ended June 30, 2025. For the three months ended June 30, 2025, total compensation cost recognized under the Plan was $40.0 thousand. As of June 30, 2025 there were 199,000 granted options that may become exercisable on future vesting dates under the Plan. No options were exercisable as of June 30, 2025.

18.     Guarantees

Nonfinancial GuaranteesFrom time to time, we may issue guarantees or indemnifications to third parties assuring performance of lease agreements pertaining to aircraft assets owned by certain CJVII Series ("nonfinancial guarantees"). Air T's performance under these guarantees would be triggered by failure of the series to perform in accordance with the terms stated in the lease agreements.Nonfinancial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable that we will be required to perform under a guarantee or indemnity, the amount of probable payment will be recorded.The maximum potential payments for nonfinancial guarantees were $4.4 million at June 30, 2025 and March 31, 2025. The carrying value of recorded liabilities related to nonfinancial guarantees was $0 at both June 30, 2025 and March 31, 2025.

19.     Subsequent Events

On July 15, 2025, CASP, a 95%-owned subsidiary of Contrail, completed the sale of two Airbus aircraft, including associated engines, for over $18.0 million. The purchaser was FTAI Aircraft Leasing