EQUITY METHOD INVESTMENTS

12 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in Insignia is accounted for under the equity method of accounting. The Company has elected a three-month lag upon adoption of the equity method. At March 31, 2019, the Company held approximately 3.5 million shares of Insignia’s common stock representing approximately 30% of the outstanding shares for a total net investment basis of approximately $5.2 million. For the year ended March 31, 2019, the Company recorded approximately $0.4 million as its share of Insignia’s net income along with a basis difference adjustment of approximately $92,000.

At March 31, 2020, the Company held approximately 3.5 million of Insignia’s common stock representing approximately 29% of the outstanding shares. For the year ended March 31, 2020, the Company recorded a loss of approximately $1.5 million as its share of Insignia’s net loss for the twelve months ended December 31, 2019 along with a basis difference adjustment of $96,000. In addition, due to adverse financial results in addition to consideration of analyst reports and other qualitative factors, the Company recorded total impairment charges of $2.3 million on the investment for the year ended March 31, 2020. The Company's net investment basis in Insignia is approximately $1.3 million as of March 31, 2020.

On November 8, 2019, the Company made an investment of $2.8 million to purchase a 19.90% ownership stake in CCI. The Company concluded that we are not the primary beneficiary of CCI, which is primarily the result of the Company's conclusion that it does not have the power to direct the activities that most significantly impact the economic performance of CCI. Accordingly, the Company does not consolidate CCI and has determined to account for this investment using equity method 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. For the year ended March 31, 2020, Air T recorded income of $0.6 million as its share of CCI's net income for the three months ended December 31, 2019 prorated for the period under Air T's ownership, along with a basis difference adjustment of $6,042.

Summarized audited financial information for the Company's equity method investees for the twelve months ended December 31, 2019 and December 31, 2018 are as follows (in thousands):


	Twelve Months Ended December 31, 2019		Twelve Months Ended December 31, 2018
Revenue	$	108,751	$	135,345
Gross Profit	7,570		22,734
Operating income (loss)	(2,653)		3,340
Net income (loss)	(3,645)		2,486
Net income attributable to Air T, Inc. stockholders	$	(887)	$	391