Equity Method Investments

3 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in Insignia Systems, Inc. (“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 June 30, 2020, the Company held approximately 3.5 million shares of Insignia’s common stock representing approximately 30% of Insignia's outstanding shares. For the quarter ended June 30, 2020, the Company recorded approximately $0.3 million as its share of Insignia’s net loss for the three months ended March 31, 2020 along with a basis difference adjustment of approximately $24,000. The Company's net investment basis in Insignia is $1.0 million as of June 30, 2020.

On November 8, 2019, the Company made an investment of $2.8 million to purchase a 19.90% ownership stake in Cadillac Castings, Inc. ("CCI"). The Company accounts for this investment 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. For the three months ended June 30, 2020, Air T recorded loss of $0.3 million as its share of CCI's net loss for the three months ended March 31, 2020, along with a basis difference adjustment of $12,000. The Company's net investment basis in CCI is $3.1 million as of June 30, 2020.

Summarized unaudited financial information for the Company's equity method investees for the three months ended March 31, 2020 and March 31, 2019 is as follows (in thousands):


	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Revenue	$	21,936	$	30,337
Gross Profit	805		1,059
Operating loss	(2,378)		(2,326)
Net loss	(2,286)		(2,849)
Net loss attributable to Air T, Inc. stockholders	$	(570)	$	(322)