Equity Method Investments

6 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in Lendway, Inc. - NASDAQ: LDWY ("Lendway"), formerly Insignia Systems, Inc. ("Insignia"), is accounted for under the equity method of accounting. On August 2, 2023, Insignia reincorporated in the state of Delaware as Lendway, Inc. Subsequent to reincorporation, Lendway sold its legacy business on August 4, 2023 to pivot the business towards non-bank lending. The Company elected a three-month lag upon adoption of the equity method. As of September 30, 2023, the Company owned 0.5 million Lendway shares, representing approximately 27.1% of Lendway's outstanding shares. During the three and six months ended September 30, 2023, the Company's share of Lendway's net loss and income for the three and six months ended June 30, 2023 was $10.0 thousand and $0.4 million, respectively. The Company's net investment basis in Lendway is $2.1 million as of September 30, 2023.

The 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 recorded income of $0.7 million and $1.4 million as its share of CCI's net income for the three and six months ended September 30, 2023, along with a basis difference adjustment of $12.0 thousand and $25.0 thousand, respectively. The Company's net investment basis in CCI is $4.0 million as of September 30, 2023.

Summarized unaudited financial information for the Company's equity method investees for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Revenue	$	47,905	$	38,388	$	99,062	$	73,989
Gross Profit	7,548		4,791		15,352		9,166
Operating income	3,984		1,809		9,245		3,790
Net income	3,295		1,055		8,410		2,805
Net income attributable to Air T, Inc. stockholders	$	646	$	435	$	1,776	$	743