airt20170930

^[1]

$ 1,358,919

$ 2,763,365

Marketable securities

2,210,389

2,130,544

^[1]

Restricted cash

890,369

^[1]

Notes and other receivables-current

^[1]

20,000,483

18,923,787

2,054,639

2,297,007

^[1]

Income tax receivable

1,054,610

402,688

^[1]

Inventories, net

18,131,734

19,778,843

^[1]

Prepayments and other

1,306,757

1,672,475

^[1]

Total Current Assets

47,007,900

48,859,078

^[1]

Investments in Available-For-Sale Securities

1,966,791

2,463,123

^[1]

Property and equipment, net

12,675,063

5,324,488

^[1]

Cash surrender value of life insurance policies

2,272,049

2,251,450

^[1]

Notes and other receivables-long-term

66,771

^[1]

Deferred income taxes

204,000

^[1]

Other assets

899,370

371,975

^[1]

Intangible assets, net

1,225,163

1,376,699

^[1]

4,417,605

^[1]

Total Assets

70,463,941

65,335,189

^[1]

Current Liabilities:

Accrued expenses and other current liabilities

12,003,439

11,571,156

^[1]

9,206,625

8,672,815

^[1]

Short-term debt

1,625,000

25,000

^[1]

Total Current Liabilities

22,835,064

20,268,971

^[1]

Long-term debt

20,247,748

18,412,521

^[1]

Deferred income taxes

81,566

8,000

^[1]

Other non-current liabilities

2,131,036

3,039,402

^[1]

Total Liabilities

45,295,414

41,728,894

^[1]

Redeemable non-controlling interest

1,796,024

1,443,901

^[1]

Commitments and Contingencies (Notes 2, 8 and 12)

Equity:

Preferred stock, $1.00 par value, 50,000 shares authorized

^[1]

Common stock, $.25 par value; 4,000,000 shares authorized, 2,042,789 shares issued and outstanding

510,696

^[1]

Additional paid-in capital

4,171,986

4,205,536

^[1]

Retained earnings

19,851,437

18,461,347

^[1]

Accumulated other comprehensive loss, net

(381,199)

(212,047)

^[1]

Total Air T, Inc. Stockholders' Equity

24,152,920

22,965,532

^[1]

Non-controlling Interests

(780,417)

(803,138)

^[1]

Total Equity

23,372,503

22,162,394

^[1]

Total Liabilities and Equity

$ 70,463,941

$ 65,335,189

^[1]

[1]	Derived from audited consolidated financial statements

XML 15 R5.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)

Sep. 30, 2017

Mar. 31, 2017

Allowance for doubtful accounts

^[1]

$ 1,358,919

$ 2,763,365

958,000

979,000

^[2]

Property and equipment, net

^[1]

20,000,483

18,923,787

Inventories, net

18,131,734

19,778,843

^[1]

Prepayments and other

1,306,757

1,672,475

^[1]

12,675,063

5,324,488

^[1]

Accrued expenses and other current liabilities

12,003,439

11,571,156

^[1]

$ 9,206,625

$ 8,672,815

^[1]

Preferred stock, par value (in dollars per share)

$ 1

^[2]

Preferred stock, shares authorized (in shares)

50,000

^[2]

Common stock, par value (in dollars per share)

$ 0.25

^[2]

Common stock, shares authorized (in shares)

4,000,000

^[2]

Common stock, shares issued (in shares)

2,042,789

^[2]

Common stock, shares outstanding (in shares)

2,042,789

^[2]

^[3]

$ 449,077

$ 328,327

^[2]

Property and equipment, net

^[3]

884,289

1,728,411

^[2]

Inventories, net

^[3]

188,410

1,941,729

^[2]

Prepayments and other

^[3]

431,416

932,794

^[2]

^[3]

8,007

^[2]

Accrued expenses and other current liabilities

^[3]

2,152,573

2,482,578

^[2]

^[3]

$ 3,114,145

$ 3,602,162

^[2]

[1]	Derived from audited consolidated financial statements
[2]	Derived from audited consolidated financial statements
[3]	Amounts related to Delphax as of September 30, 2017 and March 31, 2017, respectively.

XML 16 R6.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Cash Flows (Unaudited) - USD ($)

6 Months Ended

Sep. 30, 2017

Sep. 30, 2016

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ 1,708,347

$ (6,909,566)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Gain on sale of marketable securities

(572,945)

Gain on sale of property and equipment

(1,091)

Change in accounts receivable and inventory reserves

1,097

2,483,947

Depreciation, amortization and impairment

928,365

2,343,273

Change in cash surrender value of life insurance

(20,599)

(12,373)

Gain on asset retirement obligation

(562,500)

Gain on bargain purchase, net of tax

(501,880)

Warranty reserve

906

(28,250)

Other-than-temporary impairment loss on investments

771,173

1,502,239

Change in operating assets and liabilities:

Notes receivable and other non-trade receivables

(236,911)

(8,362,763)

155,049

(1,560,740)

Prepaid expenses and other assets

4,899,652

(6,084,943)

488,537

487,462

129,166

3,004,536

Income taxes payable/ receivable

(196,594)

797,290

(651,923)

(397,331)

Non-current liabilities

125,278

(442,874)

Total adjustments

5,327,725

(6,843,472)

Net cash provided by (used in) operating activities

7,036,072

(13,753,038)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of marketable securities

(734,600)

(2,505,520)

Proceeds from sale of marketable securities

5,254,087

Net cash flow from business combinations

(2,900,000)

(4,033,367)

Capital expenses

(8,259,215)

(911,040)

Proceeds from sale of property and equipment

1,861

10,745

Increase in restricted cash

(3,411)

Net cash used in investing activities

(11,891,954)

(2,188,506)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from line of credit

48,450,994

40,368,017

Payments on lines of credit

(46,617,448)

(19,606,842)

Proceeds from term loan

2,400,000

Payments on term loan

(800,000)

Repurchase of common stock

(7,917,009)

Net cash provided by financing activities

3,433,546

12,795,216

Effect of foreign currency exchange rates on cash and cash equivalents

17,890

(7,387)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(1,404,446)

(3,153,715)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

2,763,365

^[1]

5,345,455

CASH AND CASH EQUIVALENTS AT END OF PERIOD

1,358,919

^[1]

2,191,740

SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES:

Finished goods inventory transferred to equipment leased to customers

321,345

SUPPLEMENTAL DISCLOSURE OF INVESTING ACTIVITIES:

Non-controlling interest in acquired business

1,072,161

Acquired business earnout contract

2,900,000

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest

382,535

61,767

Income taxes

1,312,980

400,331

CASH FLOWS FROM FINANCING ACTIVITIES:

Payments on lines of credit

$ (48,950)

[1]	Derived from audited consolidated financial statements

XML 17 R7.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Equity (Unaudited) - USD ($)

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

Noncontrolling Interest [Member]

Total

Balance (in shares) at Mar. 31, 2016

2,372,527

Balance at Mar. 31, 2016

$ 593,131

$ 4,956,171

$ 28,821,825

$ (140,519)

$ 1,040,922

$ 35,271,530

Repurchase of common stock (in shares)

(329,738)

Repurchase of common stock

$ (82,435)

(687,635)

(7,146,940)

(7,917,010)

Net income (Loss) *

(4,667,369)

(2,249,808)

(6,917,177)

Net change from marketable securities, net of tax

309,309

Foreign currency translation gain (loss)

(127,259)

(62,681)

(189,940)

Balance (in shares) at Sep. 30, 2016

2,042,789

Balance at Sep. 30, 2016

$ 510,696

4,268,536

17,007,516

41,531

(1,271,567)

20,556,712

Balance (in shares) at Mar. 31, 2017

2,042,789

Balance at Mar. 31, 2017

$ 510,696

4,205,536

18,461,347

(212,047)

(803,138)

^[1]

22,162,394

^[2]

Net income (Loss) *

^[1]

1,390,090

(317)

1,389,773

Net change from marketable securities, net of tax

(379,480)

Foreign currency translation gain (loss)

210,328

23,038

^[1]

233,366

Redeemable non-controlling interest

(33,550)

Balance (in shares) at Sep. 30, 2017

2,042,789

Balance at Sep. 30, 2017

$ 510,696

$ 4,171,986

$ 19,851,437

$ (381,199)

$ (780,417)

^[1]

$ 23,372,503

[1]	Excludes amount attributable to redeemable non-controlling interest in Contrail Aviation.
[2]	Derived from audited consolidated financial statements

XML 18 R8.htm IDEA: XBRL DOCUMENT

Note 1 - Financial Statement Presentation

6 Months Ended

Sep. 30, 2017

Significant Accounting Policies [Text Block]

1.	Financial Statement Presentation

The condensed consolidated financial statements of Air T, Inc. (

“AirT”, the “Company”, “we”, “us” or “our”) have been prepared, without audit (except as it relates to the condensed consolidated balance sheet as of

March 31, 2017

which have been derived from audited financial statements), pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented

not

misleading. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results for the periods presented have been made.

-K for the year ended

March 31, 2017.

The results of operations for the periods ended

September 30

are

not

necessarily indicative of the operating results for the full year.

Certain r

eclassifications have been made to the prior period amounts to conform to the current presentation.

New Accounting Pronouncement

May 2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")

2014

09,

Revenue from Contracts with Customers (Topic

606

)

. ASU

2014

is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU

2014

also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU

2014

is effective for annual reporting periods beginning after

December 15, 2017 (

our fiscal year

2019

), including interim reporting periods within that reporting year, with earlier adoption permitted for reporting periods beginning after

December 15, 2016.

ASU

2014

may

be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but

not

for prior years. Under the latter method, entities would recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity, and disclose all line items in the year of adoption as if they were prepared under the old revenue guidance.

The Company is currently evaluating the methods of adoption allowed by the new standard and

the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. Because our evaluation is

not

complete, we have

not

yet quantified and, accordingly, are

not

able to make a reasonable estimate of the impact of the new revenue standard on our consolidated financial statements at this time. We anticipate completing our evaluation during the

third

fourth

quarter of fiscal year

2018.

July 2015,

the FASB issued ASU

015

11,

Simplifying the Measurement of Inventory (Topic

330

)

. This standard amends existing guidance to simplify the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendment in ASU

2015

is for fiscal years beginning after

December 15, 2016,

and interim periods within fiscal years beginning after

December 15, 2017.

The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does

not

expect the impact of adopting ASU

2015

to be material to the Company's consolidated financial statements and related disclosures.

November 2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes (Topic

740

)

. This standard eliminates the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Under this new guidance, entities will be required to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for interim and annual reporting periods beginning after

December 15, 2016

with earlier adoption permitted. We adopted this amendment with the quarter ended

June 30, 2017.

In Janua

2016,

the FASB issued ASU

2016

01,

Recognition and Measurement of Financial Assets and Financial Liabilities

, that amends the guidance on the classification and measurement of financial instruments (Subtopic

825

). ASU

2016

becomes effective in fiscal years beginning after

December 15, 2017,

including interim periods therein. ASU

2016

removes equity securities from the scope of Accounting Standards Codification (“ASC”) Topic

320

and creates ASC Topic

321,

Investments – Equity Securities

. Under the new guidance, all equity securities with readily determinable fair values are measured at fair value on the statement of financial position, with changes in fair value recorded through earnings. The update eliminates the option to record changes in the fair value of equity securities through other comprehensive income. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. The Company currently has investments in available for sale securities and the fair value changes of such securities are, other than in the case of possible other-than-temporary impairments, currently reflected in other comprehensive income. Provided that the Company continues to hold available for sale securities after adoption of the amended guidance, earnings are likely to become more volatile.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as either sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The new standard is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years, with early adoption permitted. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements.

March 2016,

the FASB issued ASU

2016

09,

Compensation – Stock Compensation (Topic

718

): Improvements to Employee Share-Based Payment Accounting

, which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU

2016

is effective for annual reporting periods beginning after

December 15, 2016

and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. This accounting guidance became effective for the Company beginning with the

June 30, 2017

quarter.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. This standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are

not

measured at fair value through net income, including trade receivables. The standard requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. Early adoption is permitted for annual periods beginning after

December 15, 2018,

and interim periods therein. The Company is currently evaluating the impact of the adoption of the standard on its consolidated financial statements and disclosures.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments

. ASU

2016

clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2017,

with early adoption permitted. The update requires retrospective application to all periods presented but

may

be applied prospectively if retrospective application is impracticable. The Company is currently evaluating the impact of the adoption of the standard on its consolidated financial statements and disclosures.

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230

): Restricted Cash

. ASU

2016

requires that the statement of cash flows explain the changes in the combined total of restricted and unrestricted cash balance. Amounts generally described as restricted cash or restricted cash equivalents will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Further, the ASU requires a reconciliation of balances from the statement of cash flows to the balance sheet in situations in which the balance sheet includes more than

one

line item of cash, cash equivalents, and restricted cash. Companies will also be disclosing the nature of the restrictions. ASU

2016

is effective for financial statements issued for fiscal years beginning after

December 15, 2017.

The Company is currently evaluating the impact of the standard on its consolidated financial statements and disclosures.

January 2017,

the FASB issued ASU

2017

01,

Clarifying the Definition of a Business (Topic

805

)

. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years that begin after

December 15, 2017

and is to be applied prospectively. The adoption of this standard is

not

expected to have a material impact on the Company’s consolidated financial statements.

January 2017,

the FASB issued ASU

2017

04,

Intangibles – Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

. This ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step Two from the goodwill impairment test. Step Two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this standard, an entity will recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The standard is effective for any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019,

and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after

January 1, 2017.

The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.

May 2017,

the FASB issued ASU

2017

09,

Compensation – Stock Compensation (Topic

718

): Scope of Modification Accounting

, which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. This update is effective for all entities for fiscal years beginning after

December 15, 2017,

and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements. The Company has

not

yet concluded how the new standard will impact the consolidated financial statements.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are

not

expected to have a material impact o

n the Company’s financial position, results of operations or cash flows.

XML 19 R9.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions

6 Months Ended

Sep. 30, 2017

Business Combination Disclosure [Text Block]

2.	Acquisitions

Acquisition of Interests in Contrail Aviation

July 18, 2016 (

the “Contrail Closing Date”), pursuant to an asset purchase agreement (the “Asset Purchase Agreement”) between Contrail Aviation Support, LLC (“Contrail Aviation”), a subsidiary of the Company, Contrail Aviation Support, Inc. (the “Seller” or “Contrail”) and Joseph Kuhn, the sole shareholder of the Seller, Contrail Aviation completed the purchase of all of the assets owned, used or usable by the Seller, other than cash, equity in the Seller

’s IC-DISC subsidiary and certain other specified excluded assets. Pursuant to the Asset Purchase Agreement, Contrail Aviation also assumed certain liabilities of the Seller. Prior to this acquisition, the Seller, based in Verona, Wisconsin, engaged in the business of acquiring surplus commercial jet engines and components and supplying surplus and aftermarket commercial jet engine components. In connection with the acquisition, Contrail Aviation offered employment to all of the Seller’s employees and Mr. Kuhn was appointed Chief Executive Officer of Contrail Aviation.

The acquisition consideration consisted of (i)

$4,033,36

in cash, (ii) equity membership units in Contrail Aviation representing

21%

of the total equity membership units in Contrail Aviation, and (iii) and contingent additional deferred consideration payments which are more fully described below. In addition to the net assets of the seller, beginning equity of Contrail included cash of approximately

$904,000.

Pursuant to the Asset Purchase Agreement, Contrail Aviation agreed to pay as contingent additional deferred consideration up to a maximum of

$1,500,000

per year and

$3,000,000

in the aggregate (collectively, the “Earnout Payments” and each, an “Earnout Payment”), calculated as follows:

(i) if Contrail Aviation generates EBITDA (as defined in the Asset Purchase Agreement) in any Earnout Period (as defined below) less than

$1,500,000,

Earnout Payment will be payable with respect to such Earnout Period;

(ii) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$1,500,000,

but less than

$2,000,000,

the Earnout Payment for each such Earnout Period will be an amount equal to the product of (

) the EBITDA generated with respect to such Earnout Period minus

$1,500,000,

and (y)

two

(

);

(iii) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$2,000,000,

but less than

$4,000,000,

the Earnout Payment for each such Earnout Period will be equal to

$1,000,000;

(iv) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$4,000,000,

the Earnout Payment for each such Earnout Period will be equal to

$1,500,000;

and

(v) if, following the

fifth

Earnout Period, Contrail Aviation has generated EBITDA equal to or in excess of

$15,000,000

in the aggregate during all Earnout Periods, but the Seller has received or is owed less than

$3,000,000

in aggregate Earnout Payments pursuant to clauses (i) through (iv), above, Contrail Aviation will make an additional Earnout Payment to the Seller in an amount equal to the difference between

$3,000,000

and the aggregate Earnout Payments already received or payable pursuant to clauses (i) through (iv), above.

As used in the Asset Purchase Agreement, “Earnout Period” means each of the

first

five twelve

-full-calendar-month periods following the closing of the acquisition.

The Company has estimated its liability with respect to the Earnout Payment of

$2,900,000,

which amount is included in the “Other non-current liabilities” in the consolidated balance sheet at both

September 30, 2017

and

March 31, 2017,

except for the portion denoted as payable below which has been reclassified to a current liability at

September 30, 2017.

As a result of the EBITDA of Contrail Aviation being approximately

$2.1

million for the

first

Earnout Period, the Earnout Payment with respect to that Earnout Period is

$1,000,000,

which amount was paid in

October 2017.

fifth

anniversary of the Contrail Closing Date, Contrail Aviation at its election to purchase from the Seller, and permitting the Seller at its election to require Contrail Aviation to purchase from the Seller, all of the Seller

’s equity membership interests in Contrail Aviation at a price to be agreed upon, or failing such an agreement to be determined pursuant to

third

-party appraisals in a process specified in the Operating Agreement.

The following table summarizes the

fair values of assets acquired and liabilities assumed by Contrail Aviation as of the Contrail Closing Date:

	July 18, 2016

ASSETS
Accounts receivable	$	1,357,499
Inventories		2,118,475
Prepaid expenses		30,121
Property and equipment		33,095
Intangible assets - non-compete		69,700
Intangible assets - tradename		322,000
Intangible assets - certification		47,000
Intangible assets - customer relationship		451,000
Goodwill		4,227,205
Total assets	$	8,656,095

LIABILITIES
Accounts payable	$	366,575
Accrued expenses		43,652
Earnout liability		2,900,000
Total liabilities	$	3,310,227


Net Assets	$	5,345,868

The Company

’s purchase accounting reflects the estimated net fair value of the Seller’s assets acquired and liabilities assumed as of the Contrail Closing Date. Purchase accounting also reflects the Company’s current estimate that the Earnout Payments will be due at the above-specified maximum level. The Contrail Closing Date balance sheet information disclosed above reflects the present value of such estimated Earnout Payments.

The Company has finalized its Contrail Aviation acquisition accounting.

The Put/Call Option specifies a fair value strike price as of the exercise date. As such, the Company assigned

value to the Put/Call Option for purposes of purchase accounting. Because the Put/Call Option permits the Seller to require Contrail Aviation to purchase all

of the Seller’s equity membership interests in Contrail Aviation, the Company has presented this redeemable non-controlling interest in Contrail Aviation between the liabilities and equity sections of the accompanying condensed consolidated balance sheets. For the

six

month period ended

September 30, 2017,

the redeemable non-controlling interest balance was increased by the Seller’s proportionate share of Contrail Aviation’s net earnings. The redeemable non-controlling interest balance was also increased by a portion of the estimated change in Contrail Aviation’s fair value between

March 31, 2017

and

September 30, 2017.

Pro forma financial information is

not

presented as the results are

not

material to the Company

’s condensed consolidated financial statements.

Acquisition of

AirCo Assets

May 2, 2017

and

May 31, 2017,

our newly formed subsidiaries, AirCo, LLC and AirCo Services, LLC (collectively, “AirCo”) acquired the inventory and principal business assets, and assumed specified liabilities, of Aircraft Instrument and Radio Company, Incorporated, and Aircraft Instrument and Radio Services, Inc. (collectively, the “AirCo Sellers”). The acquired business, which is based in Wichita, Kansas, distributes and sells airplane and aviation parts and maintains a license under Part

145

of the regulations of the Federal Aviation Administration. The consideration paid for the acquired business was

$2,400,000.

The following table summarizes the

provisional

fair values of assets acquired and liabilities assumed by AirCo as of

May 2, 2017,

the date of the completion of the acquisition (the “AirCo Closing Date”):

	May 2, 2017

Assets acquired and liabilities assumed at fair value:
Accounts receivables	$	748,936
Inventories		3,100,000
Property and equipment		26,748
Accounts payable		(313,117	)
Accrued expenses		(382,687	)
Net assets acquired	$	3,179,880

Net assets acquired		3,179,880
Consideration paid		2,400,000
Bargain purchase gain	$	779,880

The Company

’s purchase price accounting reflects the estimated net fair value of the AirCo Sellers assets acquired and liabilities assumed as of the AirCo Closing Date.

The Company

’s initial accounting for this acquisition is incomplete as of the date of this report. Therefore, as permitted by applicable accounting guidance, the foregoing amounts are provisional.

The tax impact related to the bargain purchase gain was to record a deferred tax liability

and record tax expense against the bargain purchase gain of approximately

$278,000

The resulting net bargain purchase gain after taxes was approximately

$502,000.

Pro forma financial information is

not

presented as the results are

not

material to the Company

’s condensed consolidated financial statements.

Other Acquisitions

and Business I

nvestments

October 3, 2016,

a newly formed s

ubsidiary of the Company, Stratus Aero Partners LLC, acquired

100%

of the outstanding equity interests of Jet Yard, LLC (“Jet Yard”) from the holder thereof. The cash purchase price was

$15,000

and there are

contractual provisions, such as an earn-out, which could result in an increase to this price. Jet Yard is registered to operate a repair station under Part

145

of the regulations of the Federal Aviation Administration and its principal asset on the acquisition date was a contract with Pinal County, Arizona to lease approximately

48.5

acres of land at the Pinal Air Park in Marana, Arizona. Jet Yard was organized in

2014,

entered into the lease in

June 2016

and had maintained de minimus operations from formation through the acquisition date. The lease expires in

May 2046

with an option to renew for an additional

-year period (though the lease to a

2.6

-acre parcel of the leased premises

may

be terminated by Pinal County upon

days’ notice). The lease provides for an initial annual rent of

$27,000,

which rental rate escalates based on a schedule in annual increments during the

first

seven

years of the lease (at which time the annual rental rate would be

$152,000

), and increases by an additional

five

percent for each

three

-year period thereafter. Because the rental expense will be accounted for on a straight-line basis over the term of the lease, the rental expense in the initial years will exceed the corresponding cash payments. The lease agreement permits Pinal County to terminate the lease if Jet Yard fails to make substantial progress toward the construction of facilities on the leased premises in phases in accordance with a specified timetable, which includes, as the initial phase, the construction of a demolition pad to be completed by

March 2017

and, as the final and most significant phase, the construction of an aircraft maintenance hangar large enough to house a Boeing

B777

300

by the

first

quarter of

2021.

The construction of the demolition pad required by

March 31, 2017

under the lease has

not

been completed and Jet Yard and Pinal County are in discussions with respect to improvements on the leased premises.

The acquired Jet Yard business is included in the Company

’s commercial jet engine segment. The Company has finalized its Jet Yard acquisition accounting.

Pursuant to an Asset Purchase Agreement signed on

October 31, 2016,

GAS acquired, effective as of

October 1, 2016,

substantially all of the assets of D&D which was in the business of marketing, selling and providing aviation repair, equipment, parts, and maintenance sales services and products at the Fort Lauderdale airport. The total amount paid at closing in connection with this acquisition was

$400,000.

Additionally,

$100,000

was due within

days after closing and an additional

$100,000

is payable in equal monthly installments of

$16,667

commencing on

November 1, 2016.

Earn-out payments of

$100,000

are also payable based on specified performance for the

twelve

-month period ending

September 30, 2017.

For purposes of purchase accounting, the Company estimated that the above-mentioned earn-out will be paid in full. Therefore, the Company estimated the total purchase consideration at approximately

$700,000.

The Company allocated the purchase consideration to identifiable tangible and intangible assets.

liabilities were assumed in the acquisition. The estimated fair value of identifiable tangible and intangibles assets was approximately

$200,000

and

$300,000,

respectively. The

$200,000

excess of the purchase consideration over the estimated fair value of identifiable assets was recorded as goodwill. The basis of the acquired assets will be “stepped up” for income tax purposes. As such,

deferred taxes were recognized in purchase accounting.

The acquired D&D business is operated by GAS and included in the Company

’s ground support services segment. The Company has finalized its D&D acquisition accounting. Based on actual revenue earned by D&D through

September 30, 2017,

the earnout payment with respect to the purchase agreement was

$100,000,

which amount was paid in

October 2017.

June 7, 2017,

the Company

’s Space Age Insurance Company subsidiary (“SAIC”) invested

$500,000

for a

40%

interest in TFS Partners LLC (“TFS Partners”), a single-purpose investment entity organized by SAIC and other investors for the purpose of making an investment in a limited liability company, The Fence Store LLC (“Fence Store LLC”), organized for the purpose of acquiring substantially all of the assets of The Fence Store, Inc. (“Fence Store Inc.”). TFS Partners acquired a

60%

interest in Fence Store LLC, which has completed the purchase of substantially all of the assets of Fence Store Inc. Prior to this transaction, Fence Store Inc. operated a business under the tradename “Town and Country Fence” selling and installing residential and commercial fencing in the greater Twin Cities, Minnesota area. Fence Store LLC intends to continue this business. The Company accounts for its investment in TFS Partners using the equity method of accounting.

Pro forma financial information is

not

presented for the above acquisitions as the results are

not

material to the Company

’s consolidated financial statements.

XML 20 R10.htm IDEA: XBRL DOCUMENT

Note 3 - Income Taxes

6 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Text Block]

3.	Income Taxes

During the

six

-month period ended

September 30, 2017,

the Company recorded

$655,000

in income tax expe

nse at an effective rate of

27.7%.

The Company records income taxes using an estimated annual effective tax rate for interim reporting. The individually largest factor contributing to the difference between the federal statutory rate of

34%

and the Company’s effective tax rate for the

six

-month period ended

September 30, 2017

was the change in valuation allowance against Delphax’s pretax activity in the period. Additionally, the estimated annual effective tax rate differs from the U. S. federal statutory rate due to the benefit for the Section

831

(b) income exclusion for SAIC, the benefit for the federal domestic production activities deduction, the increase in the valuation allowance related to the Insignia unrealized impairment loss, and state income tax expense. During the

six

-month period ended

September 30, 2016,

the Company recorded

$3,000

in income tax expense which resulted in an effective tax rate of -

0.1%.

The individually largest factor contributing to the difference between the federal statutory rate and the Company’s effective tax rate for the period ending

September 2016

was the recognition of a valuation allowance against Delphax’s pretax loss in the period. The income tax provision for the

six

-month period ended

September 30, 2016

differs from the federal statutory rate due also in part to the effect of state income taxes and the federal domestic production activities deduction. Additionally, the rate for the period ended

September 30, 2016

includes the estimated benefit for the exclusion of income for the Company’s captive insurance company subsidiary afforded under Section

831

(b).

As described in Note

effective on

November 24, 2015,

Air T, Inc. purchased equity and debt interests in Delphax Technologies, Inc. (“Delphax”) and its subsidiary Delphax Technologies Canada Limited (“Delphax Canada”). With an equity investment level by the Company of approximately

38%,

Delphax is required to continue filing a separate United States corporate tax return. Furthermore, Delphax has

three

foreign subsidiaries located in Canada, France, and the United Kingdom which file tax returns in those jurisdictions. With few exceptions, Delphax is

longer subject to examinations by income tax authorities for tax years before

2012.

Delphax maintains a

September 30

fiscal year. As of

September 30, 2016,

Delphax and its subsidiaries had estimated foreign and domestic tax loss carryforwards of

$6.3

million and

$13.2

million, respectively. As of that date, they had estimated foreign research and development credit carryforwards of

$4.3

million, which are available to offset future income tax. The credits and net operating losses expire in varying amounts beginning in the year

2023.

Domestic alternative minimum tax credits of approximately

$311,000

are available to offset future income tax with

expiration date. Should there be an ownership change for purposes of Section

382

or any equivalent foreign tax rules, the utilization of the previously mentioned carryforwards

may

be significantly limited. As a result of the bankruptcy proceedings involving Delphax Canada

(see Note

), any remaining tax attributes

not

utilized during the fiscal year ended

September 30, 2017,

including net operating losses and credit carryforwards in Canada will be lost. The tax attributes in Canada that will be lost to the extent

not

utilized include, but are

not

limited to,

$4.0M

of net operating losses and

$4.3

million of foreign credits. The Company has recorded an outside basis difference in stock of these entities of

$2.9

million which is the estimated loss that will be recognized in the United States upon their liquidation. See additional information regarding Delphax Canada in Note

The provisions of ASC

740

require an assessment of both positive and negative evidence when determining whether it is more-likely-than-

not

that deferred tax assets will be recovered. In accounting for the Delphax acquisition on

November 24, 2015,

the Company established a full valuation allowance against Delphax

’s net deferred tax assets of approximately

$11,661,000.

The corresponding valuation allowance at

September 30, 2017

and

September 30, 2016

was approximately

$13,791,000

and

$12,770,000

respectively. The cumulative losses incurred by Delphax in recent years was the primary basis for the Company’s determination that a full valuation allowance should be established.

As described in Note

effective on

July 18, 2016,

Air T, Inc. through its subsidiary, Contrail Aviation, acquired substantially all of the assets of the Seller for payment to the Seller of cash and equity membership units representing

21%

of the total equity of Contrail Aviation. The acquisition was treated as an asset acquisition for tax purposes, with Air T, Inc. receiving a step up on the

79%

interest deemed to be acquired. Contrail Aviation, a limited liability company, is taxed as a partnership with Air T, Inc. and the Seller recognizing on a pass-through basis the taxable income or loss of Contrail Aviation in proportion to their relative equity interests. Air T, Inc. will recognize deferred taxes as applicable on the outside basis difference of the investment.

As described in Note

May 2, 2017

and

May 31, 2017,

AirCo acquired the inventory and principal business assets, and assumed specified liabilities, of the AirCo Sellers.

The acquired business, which is based in Wichita, Kansas, distributes and sells airplane and aviation parts and maintains a license under Part

145

of the regulations of the Federal Aviation Administration. The consideration paid for the acquired business was

$2,400,000.

A bargain purchase gain was recognized on the acquisition of approximately

$780,000.

The tax impact related to the bargain purchase gain was to record a deferred tax liability of approximately

$278,000

and record tax expense against the bargain purchase gain line of approximately

$278,000.

The resulting net bargain purchase gain after taxes was approximately

$502,000.

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Note 4 - Net Earnings Per Share

6 Months Ended

Sep. 30, 2017

Earnings Per Share [Text Block]

4.	Net Earnings Per Share

Because there was a net loss attributable to Air T stockholders for the

three

-months ended

September 30, 2017

and the

six

-months ended

September 30, 2016,

the effect of options was excluded for computing earnings per share because the effect was anti-dilutive.

The computation of basic and diluted earnings per common share is as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2017		2016		2017		2016

Net income (loss) attributable to Air T, Inc. Stockholders	$	421,701	$	1,084,102	$	1,390,090	$	(4,667,369	)
Income (Loss) Per Share:
Basic	$	0.21	$	0.53	$	0.68	$	(2.11	)
Diluted	$	0.21	$	0.53	$	0.68	$	(2.11	)
Weighted Average Shares Outstanding:
Basic		2,042,789		2,042,789		2,042,789		2,207,658
Diluted		2,046,945		2,047,976		2,047,305		2,207,658

XML 22 R12.htm IDEA: XBRL DOCUMENT

Note 5 - Marketable Securities

6 Months Ended

Sep. 30, 2017

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

5.	Marketable Securities

Investments in available-for-sale marketable securities at

September 30, 2017

consisted of investments in publicly traded companies and had a fair market value of

$4,177,000,

an aggregate cost basis of

$4,294,000,

gross unrealized gains aggregating

$170,000

and gross unrealized losses aggregating

$287,000.

Marketable securities at

March 31, 2017

consisted of investments with a fair value of

$4,594,000,

an aggregate cost basis of

$4,331,000,

gross unrealized gains aggregating

$279,000

and gross unrealized losses aggregating

$16,000.

Securities that had been in a continuous loss position for less than

months as of

September 30, 2017

had an aggregate fair market value and unrealized loss of

$1,518,000

and

$286,000,

respectively.

September 30, 2017,

we held approximately

1.82

million shares of common stock of Insignia Systems, Inc. (NASDAQ: ISIG) (“Insignia”), representing approximately

15%

of Insignia’s outstanding shares, which shares were acquired commencing in our fiscal year ended

March 31, 2015.

Any investment with a fair value of less than its cost basis is assessed for possible “other-than-temporary” impairment regularly and at each reporting date. Other-than-temporary impairments of available-for-sale marketable equity securities are recognized in the consolidated statement of income (loss). On the basis of its

June 30, 2016,

March 31, 2017

and

June 30, 2017

assessments, the Company concluded that it had suffered an other-than-temporary impairment in its investment in the common stock of Insignia. Consistent with the applicable accounting guidance, the Company’s cost basis in the Insignia investment was lowered from

$5,106,000

$3,604,000

June 30, 2016

and then to

$2,463,000

March 31, 2017

and to

$1,724,000

June 30, 2017

after the acquisition during the quarter of shares having a cost basis of

$32,000,

reflecting, in the aggregate, an other-than-temporary impairment of

$3,414,000.

January 6, 2017,

Insignia paid a special dividend of

$0.70

per share to stockholders owning Insignia shares on that date. The receipt of such special dividend is included in the other investment income (loss) in the Company’s consolidated statements of income (loss) for the fiscal year ended

March 31, 2017.

During the

fourth

quarter of the

2017

fiscal year, we recognized an additional investment loss of approximately

$112,000

principally due to an other-than-temporary decline in fair value of other investment securities that had been in a continuous loss position for more than

months.

All securities are priced using publicly quoted market prices and are considered Level

fair value measurements.

XML 23 R13.htm IDEA: XBRL DOCUMENT

Note 6 - Inventories

6 Months Ended

Sep. 30, 2017

Inventory Disclosure [Text Block]

6.	Inventories

Inventories consisted of the following:

	September 30, 2017			March 31, 2017
Ground support service parts	$	2,661,735		$	2,447,395
Ground equipment manufacturing:
Raw materials		3,587,397			1,452,201
Work in process		1,822,043			832,635
Finished goods		3,739,160			10,001,193
Printing equipment and maintenance
Raw materials		2,700,219			3,325,142
Work in process		-			324,949
Finished goods		790,344			790,345
Commercial jet engines and parts		5,263,691			3,407,339
Total inventories		20,564,589			22,581,199
Reserves		(2,432,855	)		(2,802,356	)

Total, net of reserves	$	18,131,734		$	19,778,843

XML 24 R14.htm IDEA: XBRL DOCUMENT

Note 7 - Stock Based Compensation

6 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7.	Stock Based Compensation

Air T, Inc. maintains a stock option plan for the benefit of certain eligible employees and directors, though

awards

may

be granted under the plan after

July 29, 2015.

In addition, Delphax maintains a number of stock option plans. Compensation expense is recognized over the requisite service period for stock options which are expected to vest based on their grant-date fair values. The Company uses the Black-Scholes option pricing model to value stock options granted under the Air T, Inc. plan and the Delphax plans. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.

options were exercised under Air T, Inc.

’s stock option plan during the

three

-month and

six

-month periods ended

September 30, 2017

and

2016.

Stock-based compensation expense with respect to this plan in the amount of

was recognized for the

three

-month periods ended

September 30, 2017

and

2016,

respectively. At

September 30, 2017,

there was

unrecognized compensation expense related to the Air T Inc. stock options.

options were granted or exercised during the

September 2017

quarter under any of Delphax’s stock option plans. Delphax did

not

recognize any stock-based compensation expense during the

September 2017

quarter.

XML 25 R15.htm IDEA: XBRL DOCUMENT

Note 8 - Financing Arrangements

6 Months Ended

Sep. 30, 2017

Debt Disclosure [Text Block]

8.	Financing Arrangements

As of

September 30, 2017,

the Company had a senior secured revolving credit facility of

$25.0

million (the “Revolving Credit Facility”). The Revolving Credit Facility includes a sublimit for issuances of letters of credit of up to

$500,000.

Under the Revolving Credit Facility, Air T and its subsidiaries, Mountain Air Cargo, Inc., Global Ground Support, LLC, CSA Air, Inc., Global Aviation Services, LLC, Air T Global Leasing, LLC, Stratus Aero Partners, LLC, Jet Yard, LLC, AirCo, LLC and AirCo Services, LLC are permitted to make borrowings. Borrowings under the Revolving Credit Facility bear interest (payable monthly) at an annual rate of

one

-month LIBOR plus an incremental amount ranging from

1.50%

2.00%

based on a consolidated leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of

0.15%.

The Company includes commitment fee expense within the interest expense and other line item of the accompanying condensed consolidated statements of income (loss). Amounts applied to repay borrowings under the Revolving Credit Facility

may

be reborrowed, subject to the terms of the facility. The Revolving Credit Facility matures on

April 1, 2019.

May 2, 2017,

the Company and the above-listed subsidiaries entered into an amendment to the agreement governing the

Company’s

$25.0

million Revolving Credit Facility to establish a separate

$2.4

million term loan facility under that agreement (the “Term Loan”). Each of the Company and such subsidiaries are obligors with respect to the Term Loan, which matures on

May 1, 2018,

with equal

$200,000

installments of principal due monthly, commencing

June 1, 2017.

The outstanding balance is

$1.6

million as of

September 30, 2017.

Interest on the Term Loan is payable monthly at a per annum rate equal to

basis points above the interest rate applicable to the Revolving Credit Facility. The proceeds of the Term Loan were used to fund the acquisition of the AirCo business. The Term Loan is secured by the existing collateral securing borrowings under the Revolving Credit Facility, including such acquired assets. The amendment also provided that the consolidated asset coverage ratio covenant will

not

be measured for the fiscal quarter ended

June 30, 2017

and the fiscal quarters ending

September 30, 2017

and

December 31, 2017.

Pursuant to a Fifth Amendment and Waiver Agreement effective as of

June 28, 2017

among the Company and the above-listed subsidiaries and the lender under the Revolving Credit Facility, the agreement governing the Revolving Credit Facility was amended to provide that the interest rates on the revolving loans and Term Loan made under the Revolving Credit Facility were each increased by an additional

0.25%

per annum from the date of the amendment until the

second

business day after delivery of a compliance certificate for the quarter ending

March 31, 2017

or any subsequent fiscal quarter end showing compliance with the financial covenants required under the Revolving Credit Facility, other than with respect to covenants as to which compliance had been waived.

The compliance certificate for the quarter ended

June 30, 2017,

was so delivered on

October 26, 2017

and accordingly, the additional

0.25%

per annum additional interest ceased to accrue commencing on

October 26, 2017.

August 3, 2017,

the Company and the above listed subsidiaries entered into an amendment (the

“2017

Amendment”) with the lender under the Revolving Credit Facility to amend the Credit Agreement (as amended, the “Credit Agreement”) governing the Revolving Credit Facility. The

2017

Amendment modified the Credit Agreement to

not

require that

2587493

Ontario, Inc., a wholly-owned subsidiary of the Company, be joined as borrower under the Credit Agreement, to permit the limited guaranty of certain lease obligations of

2587493

Ontario, Inc., to revise certain covenants to address the treatment of

2587493

Ontario, Inc., to waive the existing default arising from the Company’s failure to deliver audited financial statements within

one hundred twenty

days after its

March 31, 2017

fiscal year end, and to effect conforming and other changes.

August 29, 2017,

the Company and the above-listed subsidiaries entered into a Sixth Amendment and Waiver Agreement effective as of

August 29, 2017

with the lender under the Revolving Credit Facility to amend the Credit Agreement to extend the maturity of the Revolving Credit Facility from

April 1, 2018

April 1, 2019,

to adjust the definition of “Consolidated EBITDA” to exclude from the calculation of Consolidated EBITDA, during the period from

January 1, 2016

through

June 30, 2017,

any unrealized gains or losses attributable to the ownership of equity interests in Insignia Systems, Inc., and to waive the default arising under the Credit Agreement from the failure of the Company to deliver (i) consolidated financial statements for the fiscal quarter that ended

June 30, 2017

within the time period required under the Credit Agreement and (ii) the covenant compliance certificates for the fiscal quarters that ended

March 31, 2017

and

June 30, 2017

within the time periods required under the Credit Agreement.

Pursuant to a Seventh Amendment and Waiver Agreement effective as of

October 6, 2017 (

the “Seventh Amendment”) among Air T, the above-listed subsidiaries and the lender under the Revolving Credit Facility, the lender waived the requirement that a newly formed limited purpose

subsidiary of the Company join the agreement governing the Revolving Credit Facility as a borrower and, in connection with the restatement of the Company’s consolidated financial statements for certain periods within the fiscal year ended

March 31, 2017,

the lender also waived compliance with the minimum tangible net worth covenant under the Revolving Credit Facility at the

December 31, 2016

and

March 31, 2017

measurement dates.

Borrowings under the Revolving Credit Facility, together with hedging obligations, if any, owing to the lender under the Revolving Credit Facility or any affiliate of such lender, are secured by a

first

-priority security interest in substantially all assets of the Company and the other borrowers (including, without limitation, accounts receivable, equipment, inventory and other goods, intellectual property, contract rights and other general intangibles, cash, deposit accounts, equity interests in subsidiaries and joint ventures, investment property, documents and instruments, and proceeds of the foregoing), but excluding interests in real property

$18.0

million plus, on a cumulative basis and commencing with the fiscal year ended

March 31, 2017,

50%

of consolidated net income for the fiscal year then ended, a minimum consolidated fixed charge coverage ratio of

1.35

1.0,

a minimum consolidated asset coverage ratio of

1.50

1.0

for the quarter ended

March 31, 2017

and

1.75

1.0

thereafter (though the consolidated asset coverage ratio is

not

to be tested under the agreement governing the Revolving Credit Facility for the quarters end

June 30, 2017

and

September 30, 2017

and the quarter ending

December 31, 2017),

a maximum consolidated leverage ratio of

3.5

1.0,

and a covenant limiting the aggregate amount of assets the Company and its subsidiaries lease, or hold for leasing, to others to

more than

$5,000,000

at any time. The Company was

not

in compliance with the maximum consolidated leverage ratio covenant as of the

March 31, 2017,

December 31, 2016

and

September 30, 2016

measurement dates and was

not

in compliance with the minimum tangible net worth covenant at the

December 31, 2016

and

March 31, 2017

measurement dates. The lender has waived compliance with these covenants as of these measurement dates and agreed that the maximum consolidated leverage ratio covenant was

not

to be tested at the

June 30, 2017

measurement date. Had the maximum consolidated leverage ratio covenant been tested at

June 30, 2017

measurement date, the Company would have been in compliance.

The Company was

not

in compliance with the consolidated capital expenditures and assets held for lease covenants at

September 30, 2017.

The lender has waived the non-compliance caused by the Company

’s capital expenditures and additions to assets held for lease and modified the covenant for the remainder of fiscal year

2018

to allow for a defined amount of routine capital expenditures.

The agreement governing the Revolving Credit Facility contains events of default including, without limitation, nonpayment of principal, interest or other obligations, violation of covenants, misrepresentation, cross-default to other debt, bankruptcy and other insolvency events, judgments, certain ERISA events, certain changes of control of the Company, termination of, or modification to materially reduce the scope of the services required to be provided under, certain agreements with FedEx, and the occurrence of a material adverse effect upon the Company and the other borrowers as a whole. The Company is exposed to changes in interest rates on its prior line of credit and its current revolving credit facility. If the LIBOR interest rate had been increased by

one

percentage point, based on the weighted average balance outstanding for the year, the change in annual interest expense would have been negligible.

As of

September 30, 2017,

the Company had outstanding borrowings under the Revolving Credit Facility of approximately

$13.9

million compared to outstanding borrowings of approximately

$17.9

million as of

March 31, 2017.

These balances are classified within long-term liabilities on the accompanying condensed consolidated balance sheets.

September 30, 2017,

the annual interest rate applicable to borrowings under the Revolving Credit Facility was

one

-month “LIBOR” rate plus

225

basis points. The

one

-month LIBOR rate at

September 30, 2017

was approximately

1.24%.

Except as indicated above, the Company was in compliance with all covenants under this credit facility at

September 30, 2017.

May 5, 2017,

Contrail Aviation Support, LLC (“Contrail”), a partially owned subsidiary of the Company, entered into a Business Loan Agreement (the “Loan Agreement”) with Old National Bank. The Loan Agreement provides for revolving credit borrowings by Contrail in an amount up to

$15,000,000

and replaces the revolving credit facility that Contrail had entered into with BMO Harris Bank N.A on

July 18, 2016.

Borrowings under the Loan Agreement will bear interest at an annual rate equal to

one

-month LIBOR plus

3.00%.

September 30, 2017,

$4,913,000

of aggregate borrowings were outstanding under the loan agreement and

$10,100,000

was available for borrowing.

The obligations of Contrail under the Loan Agreement are secured by a

first

-priority security interest in substantially all of the assets of Contrail and are also guaranteed by the Company, with such guaranty limited in amount to a maximum of

$1,600,000

plus interest on such amount at the rate of interest in effect under the Loan Agreement, plus costs of collection.

The Loan Agreement contains affirmative and negative covenants, including covenants that restrict Contrail

’s ability to make acquisitions or investments, make certain changes to its capital structure, and engage in any business substantially different than it presently conducts. The Loan Agreement also contains financial covenants applicable to Contrail, including maintenance of a Cash Flow Coverage Ratio of

2.0

1.0,

a Tangible Net Worth of

not

less than

$3,500,000,

and a Debt Service Coverage Ratio of

1.1

1.0,

as such terms are defined in the Loan Agreement.

The Loan Agreement contains Events of Default, as defined, including, without limitation, nonpayment of principal, interest or other obligations, violation of covenants, if both Contrail

’s current chief executive officer and chief financial officer cease to oversee day-to-day operations of Contrail, cross-default to other debt, bankruptcy and other insolvency events, actual or asserted invalidity of loan documentation, or material adverse changes in Contrail’s financial condition. At

September 30, 2017,

Contrail was in compliance with these covenants.

October 31, 2016,

Air T

and its subsidiaries, Mountain Air Cargo, Inc., Global Ground Support, LLC, CSA Air, Inc., Global Aviation Services, LLC, Air T Global Leasing, LLC, Jet Yard, LLC and Stratus Aero Partners, LLC, entered into a Loan Agreement dated as of

October 31, 2016, (

the “Construction Loan Agreement”) with the lender to borrow up to

$1,480,000

to finance the acquisition and development of the Company’s new corporate headquarters facility located in Denver, North Carolina. Under the Construction Loan Agreement, the Company was permitted to make monthly drawings to fund construction costs until

October 2017.

Borrowings under the Construction Loan Agreement bear interest at the same rate charged under the Revolving Credit Facility. Monthly interest payments began in

November 2016.

Monthly principal payments (based on a

-year amortization schedule) are to commence in

November 2017,

with the final payment of the remaining principal balance due in

October 2026.

Borrowings under the Construction Loan Agreement are secured by a mortgage on the new headquarters facility and a collateral assignment of the Company’s rights in life insurance policies with respect to certain former executives, as well as the same collateral securing borrowings under the Revolving Credit Facility. At

September 30, 2017,

outstanding borrowings under the Construction Loan were

$1,474,000.

The Construction Loan includes the same covenants as noted in the Revolving Credit Facility. See discussion above regarding those covenants.

October 27, 2017

Airco

LLC, a wholly-owned subsidiary of Airco, LLC, closed a loan in the amount of

$3,441,000

from Minnesota Bank & Trust in order to finance, in part, the purchase of a

737

800

airframe for the purpose of disassembling the plane and selling it for parts. The plane will be disassembled by Jet Yard, LLC, an affiliate, and the parts will be sold on consignment to Airco, LLC, which will market them to

third

parties. Airco

LLC is a special purpose entity formed for the purpose of this transaction.

The loan contains affirmative and negative covenants and is secured by a security interest in all of Airco

LLC

’s assets, a collateral assignment of the purchase agreement for the plane, assignments of the disassembly contract and the consignment agreement, and bailee agreements with Jet Yard, LLC and Airco, LLC. Airco, LLC is a wholly-owned subsidiary of Stratus Aero Partners LLC.

h as debt and lease agreements.

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Note 9 - Variable Interest Entities

6 Months Ended

Sep. 30, 2017

Variable Interest Entity Disclosure [Text Block]

9.	Variable Interest Entities

810

Consolidation

, an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both:

●	the power to direct the activities that most significantly impact the economic performance of the VIE; and

●	the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE.

Pursuant to a Securities Purchase Agreement dated as of

October 2, 2015 (

the "Securities Purchase Agreement") among the Company, Delphax Technologies, Inc. and its subsidiary, Delphax Technologies Canada Limited, on

November 24, 2015 (

the "Closing Date"), the Company purchased (i) at face value a

$2,500,000

principal amount Five-Year Senior Subordinated Promissory Note (the "Senior Subordinated Note") issued by Delphax Canada for a combination of cash and the surrender of outstanding principal of

$500,000

and accrued and unpaid interest thereunder, and cancellation of, a

-Day Senior Subordinated Note purchased at face value by the Company from Delphax Canada on

October 2, 2015

pursuant to the Securities Purchase Agreement and (ii) for

$1,050,000

in cash a total of

43,000

shares of Delphax's Series B Preferred Stock (the "Series B Preferred Stock") and a Stock Purchase Warrant (the "Warrant") to acquire an additional

95,600

shares of Series B Preferred Stock at a price of

$33.4728

per share (subject to adjustment for specified dilutive events).

Principal under the Senior Subordinated Note is due on

October 24, 2020

and bears interest at an annual rate of

8.5%.

Interest is to be paid in kind until, in the absence of specified events,

November 24, 2017.

Thereafter, interest is to be paid in cash. Interest in kind is to be paid monthly, while interest payable in cash is to be paid quarterly. The Senior Subordinated Note is guaranteed by Delphax and is secured by security interests granted by Delphax and Delphax Canada in their respective inventories, equipment, accounts receivable, cash, deposit accounts, contract rights and other specified property, as well as a pledge by Delphax of the outstanding capital stock of its subsidiaries, including Delphax Canada. Pursuant to the terms of a subordination agreement (the "Subordination Agreement") entered into on

October 2, 2015

by Delphax, Delphax Canada, the Company and the senior lender (the "Senior Lender") tha

t then provided a revolving credit facility under an agreement with Delphax and Delphax Canada (the "Delphax Senior Credit Agreement"), the Company's rights with respect to payment under and enforcement of the Senior Subordinated Note, and enforcement of its security interests were subordinated to the rights of the Senior Lender under the Delphax Senior Credit Agreement.

Each share of Series B Preferred Stock is convertible into

100

shares of common stock of Delphax, subject to anti-dilution adjustments, and has

liquidation preference over shares of common stock of Delphax.

dividends are required to be paid with respect to the shares of Series B Preferred Stock, except that ratable dividends (on an as-converted basis) are to be paid in the event that dividends are paid on the common stock of Delphax. Based on the number of shares of Delphax common stock outstanding and reserved for issuance under Delphax's employee stock option plans at the Closing Date, the number of shares of common stock underlying the Series B Preferred Stock purchased by the Company represent approximately

38%

of the shares of Delphax common stock that would be outstanding assuming conversion of Series B Preferred Stock held by the Company

50%

of the number of shares of Series B Preferred Stock initially purchasable under the Warrant (or holds shares of Series B Preferred Stock acquired in connection with the exercise of the Warrant equal to

50%

of the number of shares of Series B Preferred Stock initially purchasable under the Warrant), then

● holders of the Series B Preferred Stock, voting as a separate class, would be entitled to elect (and exercise rights of removal and replacement) with respect to

three

-sevenths of the board of directors of Delphax, and after

June 1, 2016

the holders of the Series B Preferred Stock, voting as a separate class, would be entitled to elect (and to exercise rights of removal and replacement of) with respect to

four

-sevenths of the members of the board of directors of Delphax; and

● without the written consent or waiver of the Company, Delphax

may

not

enter into specified corporate transactions.

Pursuant to the provision described above, beginning on

November 24, 2015,

three

designees of the Company were elected to the board of directors of Delphax, which had a total of

seven

members following their election.

The Warrant expires on

November 24, 2021.

In the event that Delphax were to declare a cash dividend on its common stock, the Warrant provides that the holder of the Warrant would participate in the dividend as if the Warrant had been exercised in full and the shares of Series B Preferred Stock acquired upon exercise had been fully converted into Delphax common stock. The Warrant provides that, prior to any exercise of the Warrant, the holder of the Warrant must

first

make a good faith written tender offer to existing holders of Delphax common stock to purchase an aggregate amount of common stock equal to the number of shares of common stock issuable upon conversion of the Series B Preferred Stock that would be purchased upon such exercise of the Warrant. The Warrant requires that the per share purchase price to be offered in such tender offer would be equal to the then-current exercise price of the Warrant divided by the then-current conversion rate of the Series B Preferred Stock. To the extent that shares of common stock are purchased by the holder in the tender offer, the amount of shares of Series B Preferred Stock purchasable under the Warrant held by such holder is to be ratably reduced. The Warrant is to provide that it

may

be exercised for cash, by surrender of principal and interest under the Senior Subordinated Note equal to

0.95

times the aggregate exercise price or by surrender of a portion of the Warrant having a value equal to the aggregate exercise price based on the difference between the Warrant exercise price per share and an average market value, measured over a

-trading day period, of Delphax common stock that would be acquired upon conversion of

one

share of Series B Preferred Stock.

In accordance with ASC

810,

the Company evaluated whether Delphax was a VIE as of

November 24, 2015.

Based principally on the fact that the Company granted Delphax subordinated financial support, the Company determined that Delphax was a VIE on that date. Therefore, it was necessary for the Company to assess whether it held any “variable interests”, as defined in ASC

810,

in Delphax. The Company concluded that its investments in Delphax

’s equity and debt, and its investment in the Warrant, each constituted a variable interest. Based on its determination that it held variable interests in a VIE, the Company was required to assess whether it was Delphax’s “primary beneficiary”, as defined in ASC

810.

After considering all relevant facts and circumstances, the Company concluded that it became the primary beneficiary of Delphax on

November 24, 2015.

While various factors informed the Company

’s determination, the Company assigned considerable weight to both

) the shortness of time until

June 1, 2016

when the Company would become entitled to elect

four

-sevenths of the members of the board of directors of Delphax and

) the anticipated financial significance of Delphax’s activities in the periods subsequent to

June 1, 2016.

Since the Company became Delphax’s primary beneficiary on

November 24, 2015,

the Company consolidated Delphax in its consolidated financial statements beginning on that date.

The following table sets forth the carrying values of Delphax

’s assets and liabilities as of

September 30, 2017

and

March 31, 2017:

	September 30, 2017			March 31, 2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	449,077		$	328,327
Accounts receivable, net		884,289			2,036,221
Inventories		188,410			1,941,729
Other current assets		431,416			1,145,274
Total current assets		1,953,192			5,451,551
Property and equipment		-			8,007
Total assets	$	1,953,192		$	5,459,558

LIABILITIES
Current liabilities:
Accounts payable	$	2,152,573		$	2,482,578
Income tax payable		11,312			11,312
Accrued expenses		3,114,145			3,627,162
Short-term debt		3,033,436			4,714,257
Total current liabilities		8,311,466			10,835,309

Net Assets	$	(6,358,274	)	$	(5,375,751	)

The short-term debt

is comprised of amounts due from Delphax to Air T, Inc. Those amounts have been eliminated in consolidation. As of

September 30, 2017,

the outstanding principal amount of the Senior Subordinated Note was approximately

$2,375,000

(

$2,500,000

as of

March 31, 2017)

and the outstanding borrowings under the Delphax Senior Credit Agreement were

(

$1,541,000

as of

March 31, 2017).

Short-term debt as reflected in the above table includes approximately

$658,000

and

$388,000

of accrued interest, due to the Company from Delphax Canada and Delphax Technologies, Inc. under the Senior Subordinated Note as of

September 30, 2017

and

March 31, 2017,

respectively. Short term debt as of

March 31, 2017

also includes approximately

$112,000

of accrued interest, due to the Company from Delphax Canada and Delphax Technologies, Inc. under the Delphax Senior Credit Agreement. As a result of the foreclosure completed by the Company on

August 10, 2017,

the amount secured by the Delphax Senior Credit Agreement was satisfied.

The assets of Delphax can only be used to satisfy the obligations of Delphax.

January 6, 2017,

the Company acquired all rights, and assumed all obligations, of

the Senior Lender under the Delphax Senior Credit Agreement with Delphax and Delphax Canada providing for a

$7.0

million revolving senior secured credit facility, subject to a borrowing base of North American accounts receivable and inventory, including obligations, if any, to fund future borrowings under the Delphax Senior Credit Agreement. In connection with this transaction, the Company paid to the Senior Lender an amount equal to the approximately

$1.26

million outstanding borrowing balance, plus accrued and unpaid interest and fees. Also in connection with this transaction, the Company, Delphax and Delphax Canada entered into an amendment to the Delphax Senior Credit Agreement to reduce the maximum amount of borrowings permitted to be outstanding under the Delphax Senior Credit Agreement from

$7.0

million to

$2.5

million, to revise the borrowing base to include in the borrowing base

100%

of purchase orders from customers for products up to

$500,000,

to provide that the interest rate on all borrowings outstanding until all loans under the Delphax Senior Credit Agreement are repaid in full will be a default rate equal to

2.5%

per month to be paid monthly, and to provide for the payment to the Company from Delphax Canada and Delphax of fees equal to

$25,000

upon execution of the amendment and of

$50,000

upon repayment in full of all loans under the Delphax Senior Credit Agreement. On

January 6, 2017,

the Company notified Delphax and Delphax Canada of certain “Events of Default” (as defined under the Delphax Senior Credit Agreement) existing under the Delphax Senior Credit Agreement and that the Company was reserving all rights to exercise remedies under the Delphax Senior Credit Agreement and that

delay in exercising any such remedy is to be construed as a waiver of any of its remedies. Also, on

January 6, 2017,

the Company and Delphax Canada entered into a Forbearance and Amendment Agreement dated as of

January 6, 2017,

which amended the Senior Subordinated Note to increase the default rate of interest from an annual rate of

10.5%

to an annual rate of

18%,

to be in effect until all amounts under the Senior Subordinated Note are paid in full, and which provides that so long as

Event of Default (as defined in the Senior Subordinated Note) occurs under the Senior Subordinated Note, other than Events of Default that existed as of

January 6, 2017,

the Company agreed to forbear from exercising its remedies under the Senior Subordinated Note until

May 31, 2017

and further provided for the payment by Delphax Canada to the Company of a forbearance fee equal to approximately

$141,000.

Notwithstanding the existence of events of default, during the

first

six

calendar months of

2017,

the Company permitted additional borrowings under the Delphax Senior Credit Agreement to, among other things, fund a final production run by Delphax Canada of consumable products for its legacy printing systems, which production run was primarily completed over that period. Delphax Canada was Delphax's sole manufacturing subsidiary.

During

the quarter ended

June 30, 2016,

Delphax was informed by its largest customer that the customer had decided to accelerate its plans for removing Delphax legacy printing systems from production and that Delphax should, as a consequence, expect the future volume of legacy product orders from the customer to decline markedly from prior forecasts. Furthermore, the future timeframe over which orders could be expected from this customer was being sharply curtailed. In addition to this specific customer communication, Delphax also experienced a broad-based decline in legacy product customer demand during the

first

quarter. Sales of Delphax’s new élan printer system also had

not

materialized to expectations.

The adverse business developments during the quarter ended

June 30, 2016

and the significantly deteriorated outlook for future orders of legacy and élan product caused the Company to reevaluate the recoverability of Delphax

’s assets, both tangible and intangible. Based on this reevaluation, which involved material estimation and subjectivity (including with respect to the recovery on assets in an operating liquidation), the Company concluded that a significant increase to inventory reserves was necessary. In addition, the Company concluded that Delphax related intangible assets, both amortizable assets and goodwill, should be fully impaired. The Company also recorded a partial impairment of Delphax related long-lived tangible assets. Furthermore, there was an assessment regarding whether, at

June 30, 2016,

future severance actions under existing Delphax employee benefit plans were both probable and estimable. This assessment led to the Company establishing an estimated accrual for future severance actions. The effects of these various adjustments, which aggregated to approximately

$5,610,000,

were reflected in the operating results of Delphax for the quarter ended

June 30, 2016.

The Company concluded that Delphax related intangible assets, both amortizable assets and goodwill, should be fully impaired. The Company recorded goodwill of approximately

$375,000

in connection with its investment in Delphax. The Company estimated a subsequent impairment of this goodwill during the fiscal year ended

March 31, 2016

$100,000

and an additional impairment of

$275,000

during the quarter ended

June 30, 2016.

These impairment losses are reflected on the consolidated statement of income (loss) within the “depreciation, amortization and impairment” line item.

Intangible assets of Delphax had a net book value of approximately

$1.4

million as of

March 31, 2016.

During the quarter ended

June 30, 2016,

the Company recognized an impairment charge which resulted in the remaining net book of Delphax intangible assets being fully written off.

The Company estimated and recorded a tradename and patent impairment charge related to Delphax in the amount of approximately

$1,385,000

during the quarter ended

June 30, 2016.

An impairment charge in the amount of

$50,000

was recorded during the fiscal year

2016.

These impairment losses are reflected on the consolidated statement of income (loss) within the “depreciation, amortization and impairment” line item.

’s business outlook and alternative courses of action. During the quarter ended

June 30, 2016,

a number of Delphax employees were either severed or furloughed. For most of fiscal year

2017,

Delphax’s operations were maintained at a significantly curtailed level.

In light of continuing events of default under the Delphax Senior Credit Agreement and the conclusion of fina

l production run by Delphax Canada of consumable products for Delphax’s legacy printing systems, on

July 13, 2017,

the Company delivered a demand for payment and Notice of Intention to Enforce Security to Delphax Canada. On

August 10, 2017,

the Company foreclosed on all personal property and rights to undertakings of Delphax Canada. The Company foreclosed as a secured creditor with respect to amounts owed to it by Delphax Canada under the Delphax Senior Credit Agreement. The Company provided notice of its intent to foreclose to Delphax Canada and its secured creditors and shareholder on

July 26, 2017.

The outstanding amount owed to the Company by Delphax Canada under the Delphax Senior Credit Agreement on

July 26, 2017

was approximately

$1,510,000.

The Company also submitted an application to the Ontario Superior Court of Justice in Bankruptcy and Insolvency (the "Ontario Court") seeking that Delphax Canada be adjudged bankrupt. On

August 8, 2017,

the Ontario Court issued an order adjudging Delphax Canada to be bankrupt. The recipients of the foreclosure notice did

not

object to the foreclosure or redeem. As a result, the foreclosure was completed on

August 10, 2017,

and the Company accepted the personal property and rights to undertakings of Delphax Canada in satisfaction of the amount secured by the Delphax Senior Credit Agreement.

With its being adjudged bankrupt on

August 8, 2017,

Delphax Canada ceased to have capacity to deal with its property. The property of Delphax Canada vested in the trustee in bankruptcy of Delphax Canada subject to the rights of secured creditors. The Company

’s rights under Delphax Senior Credit Agreement permitted it to foreclose upon the personal property and rights of undertakings of Delphax Canada. Since the Company foreclosed on Delphax Canada’s assets within very close time proximity to the commencement of bankruptcy proceedings and because the bankruptcy and foreclosure were undertaken in contemplation of

one

another, the Company treated these as

one

single financial reporting event. In accordance with applicable accounting guidance, the Company considered whether Delphax Canada was still a business post-bankruptcy and foreclosure of the assets by the Company and concluded that Delphax Canada

longer constituted a business as it is defined by accounting principles generally accepted in the United States of America and, accordingly, derecognition of Delphax Canada’s liabilities will occur when Delphax Canada is legally released as the primary obligor with respect to the liabilities in the bankruptcy proceedings. As of

September 30, 2017,

the bankruptcy proceedings were ongoing in accordance with Canadian law and, therefore, Delphax Canada was still the primary obligor of its liabilities.

The intercompany balances under the Delphax Senior

Subordinated Note as of

September 30, 2017

are eliminated in the presentation of the condensed consolidated financial statements. The effect of interest expense arising under the Senior Subordinated Note and, from

January 6, 2017

August 10, 2017,

under the Delphax Senior Credit Agreement, and other intercompany transactions, are reflected in the attribution of Delphax net income or loss to non-controlling interests because Delphax is a variable interest entity.

Delphax

’s revenues and expenses are included in our consolidated financial statements beginning

November 24, 2015

through

September 30, 2017.

Revenues and expenses prior to the date of initial consolidation were excluded. We have determined that the attribution of Delphax net income or loss should be based on consideration of all of Air T’s investments in Delphax and Delphax Canada. The Warrant provides that in the event that dividends are paid on the common stock of Delphax, the holder of the Warrant is entitled to participate in such dividends on a ratable basis as if the Warrant had been fully exercised and the shares of Series B Preferred Stock acquired upon such exercise had been converted into shares of Delphax common stock. This provision would have entitled Air T, Inc. to approximately

67%

of any Delphax dividends paid, with the remaining

33%

paid to the non-controlling interests. We concluded that this was a substantive distribution right which should be considered in the attribution of Delphax net income or loss to non-controlling interests. We furthermore concluded that our investment in the debt of Delphax should be considered in attribution. Specifically, Delphax’s net losses are attributed

first

to our Series B Preferred Stock and Warrant investments and to the non-controlling interest (

67%/33%

) until such amounts are reduced to zero. Additional losses are then fully attributed to our debt investments until they too are reduced to zero. This sequencing reflects the relative priority of debt to equity. Any further losses are then attributed to Air T and the non-controlling interests based on the initial

67%/33%

share. Delphax net income is attributed using a backwards-tracing approach with respect to previous losses.

As a result of the application of the above-described attribution methodology

, for the

six

months ended

September 30, 2017,

the attribution of Delphax net income to non-controlling interests was

and for the

six

months ended

September 30, 2016,

the attribution of Delphax net loss to non-controlling interests was

33%.

The following table sets forth the revenue and expenses of Delphax

, prior to intercompany eliminations, that are included in the Company’s condensed consolidated statements of income (loss) for the

six

months ended

September 30, 2017

and

2016.

	Six Months Ended September 30,
	2017			2016
	(Unaudited)			(Unaudited)

Operating Revenues	$	4,434,303		$	4,958,826

Operating Expenses:
Cost of sales		2,583,807			7,723,898
General and administrative		1,001,896			1,704,852
Research and development		195,653			750,882
Depreciation, amortization and impairment		8,007			1,726,404
		3,789,363			11,906,036
Operating Income (Loss)		644,940			(6,947,210	)

Non-operating Income (Expenses), net		(188,000	)		(45,147	)

Income (Loss) Before Income Taxes		456,940			(6,992,357	)

Income Taxes		-			-

Net Income (Loss)	$	456,940		$	(6,992,357	)

Non-operating

income (expense), net, includes interest expense of approximately

$440,000

associated with the Senior Subordinated Note and the Delphax Senior Credit Agreement for the

six

months ended

September 30, 2017

and approximately

$116,000

associated with the Senior Subordinated Note for the

six

months ended

September 30, 2016.

This interest expense was eliminated for purposes of net income (loss) presented in the Company’s accompanying consolidated statements of income (loss) and comprehensive income (loss) for the

six

months ended

September 30, 2017

and

2016,

though the effect of intercompany interest under the Senior Subordinated note and the Delphax Senior Credit Agreement is reflected in the attribution of Delphax net income or losses attributed to non-controlling interests.

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Note 10 - Geographical Information

6 Months Ended

Sep. 30, 2017

Geographical Reporting Disclosure [Text Block]

10.	Geographical information

Total property and equipment, net of accumulated depreciation, located in the United States,

(the Company's country of domicile), and that held outside the United States are summarized in the following table as of

September 30, 2017

and

March 31, 2017:

	September 30, 2017		March 31, 2017
United States, the Company ’s country of domicile	$	5,772,340	$	5,323,471
Foreign		6,902,723		1,017
Total property and equipment, net	$	12,675,063	$	5,324,488

Total revenue, in and outside the United States is summarized in the following table for

the

six

-month periods ended

September 30, 2017

and

September 30, 2016:

	September 30, 2017		September 30, 2016
United States, the Company ’s country of domicile	$	85,319,178	$	64,393,507
Foreign		11,239,685		4,622,736
Total revenue	$	96,558,863	$	69,016,243

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Note 11 - Segment Information

6 Months Ended

Sep. 30, 2017

Segment Reporting Disclosure [Text Block]

11.	Segment Information

The Company has

six

business segments. The overnight air cargo segment, composed of the Company

’s Mountain Air Cargo, Inc. (“MAC”) and CSA Air, Inc. (“CSA”) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment, composed of the Company’s Global Ground Support, LLC (“GGS”) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the U.S. military and industrial customers. The ground support services segment, composed of the Company’s Global Aviation Services, LLC (“GAS”) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. The printing equipment and maintenance segment is composed of Delphax and its subsidiaries, which was consolidated for financial accounting purposes beginning

November 24, 2015.

Delphax sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. The equipment is sold through Delphax and its subsidiaries located in the United Kingdom and France. In

July 2016,

the Company’s majority owned subsidiary, Contrail Aviation Support, LLC (“Contrail Aviation”), acquired the principal assets of a business based in Verona, Wisconsin engaged in acquiring surplus commercial jet engines or components and supplying surplus and aftermarket commercial jet engine component. In

October 2016,

the Company, through a wholly-owned subsidiary, acquired

100%

of the outstanding equity interests of Jet Yard, LLC (“Jet Yard”) to provide commercial aircraft storage, storage maintenance and aircraft disassembly/part-out services at facilities leased at the Pinal Air Park in Marana, Arizona. In

May 2017,

our newly formed subsidiaries AirCo, LLC and AirCo Services, LLC (collectively “AirCo”), acquired the inventory and principal assets of a business based in Wichita, Kansas that distributes and sells airplane and aviation parts. Contrail Aviation, Jet Yard and AirCo comprise the commercial jet engines and parts segment of the Company’s operations. This segment, formerly referred to as the commercial jet engines segment, was renamed to reflect its broader product and service offerings. The Company’s leasing segment, comprised of the Company’s Air T Global Leasing, LLC (“ATGL”) subsidiary, provides funding for equipment leasing transactions, which

may

include transactions for the leasing of equipment manufactured by GGS and Delphax and transactions initiated by

third

parties unrelated to equipment manufactured by the Company or any of its subsidiaries. ATGL commenced operations during the quarter ended

December 31, 2015.

March 2014,

the Company formed Space Age Insurance Company (“SAIC”), a captive insurance company licensed in Utah. SAIC insures risks of the Company and its subsidiaries that were

not

previously insured by the various Company insurance programs (including the risk of loss of key customers and contacts, administrative actions and regulatory changes); and

may

from time to time underwrite

third

-party risk through certain reinsurance arrangements.

Each business segment has separate management teams and infrastructures that offer different products and services. We evaluate the performance of our business segments based on opera

ting income. For the quarters ended

September 30, 2017

and

2016,

the premiums paid to SAIC by the Company were allocated among the operating segments based on segment revenue and certain identified corporate expense were allocated to the segments based on the relative benefit of those expenses to each segment.

Segment data is summarized as follows:

	Three Months Ended September 30,						Six Months Ended September 30,
	2017			2016			2017			2016
Operating Revenues:
Overnight Air Cargo	$	18,081,073		$	17,151,214		$	34,823,248		$	33,788,379
Ground Equipment Sales:
Domestic		15,046,892			10,305,102			20,323,258			15,691,171
International		469,217			783,775			1,142,507			2,068,394
Total Ground Equipment Sales		15,516,109			11,088,877			21,465,765			17,759,565
Ground Support Services		8,801,326			7,038,151			17,914,399			13,838,193
Printing Equipment and Maintenance:
Domestic		280,328			1,016,697			1,724,310			3,249,403
International		1,022,594			732,041			2,709,993			1,709,423
Total Printing Equipment and Maintenance		1,302,922			1,748,738			4,434,303			4,958,826
Commercial Jet Engines and Parts:
Domestic		2,275,190			450,188			10,466,075			450,188
International		2,851,729			844,919			7,387,185			844,919
Total Commercial Jet Engines and Parts		5,126,919			1,295,107			17,853,260			1,295,107
Leasing		34,816			221,745			70,563			463,515
Corporate		290,533			281,926			581,065			563,852
Intercompany		(292,208	)		(302,768	)		(583,740	)		(3,651,194	)
Total	$	48,861,490		$	38,522,990		$	96,558,863		$	69,016,243

Operating Income (Loss):
Overnight Air Cargo	$	896,506		$	440,804		$	1,713,172		$	1,419,981
Ground Equipment Sales		1,165,430			1,243,037			1,331,224			1,585,357
Ground Support Services		276,113			(240,717	)		632,937			(350,769	)
Printing Equipment and Maintenance		(482,222	)		(11,851	)		441,814			(6,947,210	)
Commercial Jet Engines and Parts		(48,760	)		42,806			762,180			42,806
Leasing		4,671			72,157			11,569			179,415
Corporate		(1,385,863	)		(531,696	)		(2,255,779	)		(1,463,533	)
Intercompany		49,783			7,199			51,109			(517,790	)
Total	$	475,658		$	1,021,739		$	2,688,226		$	(6,051,743	)

Capital Expenditures:
Overnight Air Cargo	$	20,346		$	36,040		$	20,346		$	36,040
Ground Equipment Sales		2,258			-			2,258			19,596
Ground Support Services		117,919			110,728			143,284			212,139
Printing Equipment and Maintenance		8,491			-			8,491			9,927
Commercial Jet Engines and Parts		7,078,004			-			7,082,981			-
Corporate		542,202			244,703			1,001,855			633,338
Leasing		-			-			-			3,066,500
Intercompany		-			-			-			(3,066,500	)
Total	$	7,769,220		$	391,471		$	8,259,215		$	911,040

Depreciation, amortization and impairment:
Overnight Air Cargo	$	30,128		$	30,100		$	61,144		$	59,309
Ground Equipment Sales		117,499			47,326			250,379			94,920
Ground Support Services		113,625			87,273			225,256			170,709
Printing Equipment and Maintenance		3,316			45,803			8,007			1,726,404
Commercial Jet Engines and Parts		151,338			28,406			197,114			28,406
Leasing		14,810			85,921			29,622			218,290
Corporate		100,146			36,042			159,493			66,785
Intercompany		(1,324	)		(7,199	)		(2,650	)		(21,550	)
Total	$	529,538		$	353,672		$	928,365		$	2,343,273

The elimination of intercompany revenues is related t

o the sale during the

six

months ended

September 30, 2016

ten

commercial deicing units by GGS to ATGL and

two

élan printers by Delphax to ATGL and premiums paid to SAIC, and the elimination of intercompany operating income for such period reflects the margins on the sales of those assets, elimination of excess depreciation and amortization related to the margin on those assets, and the premiums paid to SAIC. The sales of the deicing units and élan printers did

not

reoccur during the

six

months ended

September 30, 2017.

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Note 12 - Commitments and Contingencies

6 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Text Block]

12.	Commitments and Contingencies

The Company is involved in variou

s legal actions and claims arising in the ordinary course of business. Management believes that these matters, if adversely decided, would

not

have a material adverse effect on the Company's results of operations or financial position.

July 2016,

pursuant to the Asset Purchase Agreement, Contrail Aviation agreed to pay as contingent additional deferred consideration up to a maximum of

$1,500,000

per year and

$3,000,000

in the aggregate (collectively, the “Earnout Payments” and each, an “Earnout Payment”), calculated as follows:

(i) if Contrail Aviation generates EBITDA (as defined in the Asset Purchase Agreement) in any Earnout Period (as defined below) less than

$1,500,000,

Earnout Payment will be payable with respect to such Earnout Period;

(ii) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$1,500,000,

but less than

$2,000,000,

the Earnout Payment for each such Earnout Period will be an amount equal to the product of (

) the EBITDA generated with respect to such Earnout Period minus

$1,500,000,

and (y)

two

(

);

(iii) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$2,000,000,

but less than

$4,000,000,

the Earnout Payment for each such Earnout Period will be equal to

$1,000,000;

(iv) if Contrail Aviation generates EBITDA in any Earnout Period equal to or in excess of

$4,000,000,

the Earnout Payment for each such Earnout Period will be equal to

$1,500,000;

and

(v) if, following the

fifth

Earnout Period, Contrail Aviation has generated EBITDA equal to or in excess of

$15,000,000

in the aggregate during all Earnout Periods, but the Seller has received or is owed less than

$3,000,000

in aggregate Earnout Payments pursuant to clauses (i) through (iv), above, Contrail Aviation will make an additional Earnout Payment to the Seller in an amount equal to the difference between

$3,000,000

and the aggregate Earnout Payments already received or payable pursuant to clauses (i) through (iv), above.

As used in the Asset Purchase Agreement, “Earnout Period” means each of the

first

five twelve

-full-calendar-month periods following the c

losing of the acquisition. The Company has estimated its liability with respect to the Earnout Payment of

$2,900,000

which amount is included in the “Other non-current liabilities” in the consolidated balance sheet at both

September 30, 2017

and

March 31, 2017,

except for the portion denoted as payable below which has been reclassified to a current liability at

September 30, 2017.

As a result of EBITDA of Contrail Aviation being approximately

$2.1

million for the

first

Earnout Period, the Earnout Payment with respect to the Earnout Period is

$1,000,000,

which amount was paid in

October 2017.

fifth

’s equity membership interests in Contrail Aviation at a price to be agreed upon, or failing such an agreement to be determined pursuant to

third

-party appraisals in a process specified in the Operating Agreement.

As discussed in Note

Contrail Aviation entered into the Loan Agreement with Old National Bank on

May 5, 2017.

Contrail Aviation

’s obligations under the Loan Agreement are guaranteed by the Company, with such guaranty limited in amount to a maximum of

$1,600,000

plus interest on such amount at the rate of interest in effect under the Loan Agreement, plus costs of collection.

October 31, 2016,

GAS acquired, effective as of

October 1, 2016,

substantially all of the assets of D&D GSE Support, Inc. (“D&D”) which was in the business of marketing, selling and providing aviation repair, equipment, parts, and maintenance sales services and products at the Fort Lauderdale airport. The total amount paid at closing in connection with this acquisition was

$400,000,

with an additional

$100,000

paid

days after closing and an additional

$100,000

payable in equal monthly installments of

$16,667

commencing on

November 1, 2016.

Earn-out payments of up to

$100,000

may

also be payable based on specified performance for the

twelve

-month period ending

September 30, 2017.

Based on actual revenue earned by D&D through

September 2017,

the earnout payment with respect to the purchase agreement was

$100,000

which amount was paid in

October 2017.

A newly organized subsidiary of Air T leases

12,206

square feet of space in a building located in Mississauga, Ontario. The lease commenced on

August 1, 2017

and terminates on

July 31, 2020.

Annual rent under the lease escalates annually, with annual rent of approximately

$94,600

(CDN) for the

first

year and approximately

$97,000

(CDN) in the

third

year. The subsidiary

’s obligations under the lease have been guaranteed by Air T. The lease of production facilities in Mississauga, Ontario by Delphax Canada has been terminated effective upon removal of the property foreclosed upon by Air T.

The Company currently expects that

none

of Delphax Canada

’s unsecured creditors will receive payment in connection with the ongoing bankruptcy proceedings. This is because the Company’s priority claims under the Delphax Senior Credit Agreement permitted it to foreclose upon all of Delphax Canada’s personal property and rights of undertakings. Unsecured creditors of Delphax Canada

may

attempt to advance claims against the Company, whether as direct claims or alleging successor liability in light of the foreclosure. The Company does

not

believe that any such claims will be successfully advanced and therefore expects

significant adverse effect on the Company’s financial position or results of operations as a result of such possible claims.

The Company has various operating lease commitments for office equipment and its office and maintenance facilities.

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Note 13 - Related Party Matters

6 Months Ended

Sep. 30, 2017

13 .	Related Party Matters

Since

1979

the Company has leased the Little Mountain Airport in Maiden, North Carolina from a corporation whose stock is owned in part by former officers and directors of the Company and an estate of which certain former directors are beneficiaries. The facility consists of approximately

acres with

one

3,000

-foot paved runway, approximately

20,000

square feet of hangar space and approximately

12,300

square feet of office space. The operations of Air T, MAC and ATGL are headquartered at this facility. The lease for this facility provides for monthly rent of

$14,862

and expires on

January 31, 2018,

though the lease

may

be renewed by the Company for

three

additional

two

-year option periods through

January 31, 2024.

The Company does

not

intend to renew the lease for this facility as operations conducted at this facility were relocated to a newly constructed, owned facility on

July 31, 2017.

The lease agreement provides that the Company shall be responsible for maintenance of the leased facilities and for utilities, taxes and insurance.

21,000

square feet of warehouse and office space. The Company paid aggregate rental payments of

$111,189

to Cohen Kuhn Properties, LLC pursuant to such lease during the period from

July 18, 2016

through

March 31, 2017.

The lease for this facility expires on

June 30, 2021,

though the Company has the option to renew the lease for a period of

five

years on the same terms. The lease agreement provides that the Company shall be responsible for maintenance of the leased facilities and for utilities, taxes and insurance. The Company believes that the terms of such leases are

less favorable to the Company than would be available from an independent

third

party.

See Note

for a discussion of the pending transactions between a newly formed subsidiary of the Company and Gary S. Kohler, a director of the Company, and Blue Clay Capital Management, LLC, a company owned solely by Mr. Kohler.

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Note 14 - Subsequent Events

6 Months Ended

Sep. 30, 2017

Subsequent Events [Text Block]

14.	Subsequent Events

October 27, 2017

Airco

LLC, a wholly-owned subsidiary of Airco, LLC, closed a loan in the amount of

$3,441,000

from Minnesota Bank & Trust in order to finance, in part, the purchase of a

737

800

third

parties. Airco

LLC is a special purpose entity formed for the purpose of this transaction.

The loan contains affirmative and negative covenants and is secured by a security interest in all of Airco

LLC’s assets, a collateral assignment of the purchase agreement for the plane, assignments of the disassembly contract and the consignment agreement, and bailee agreements with Jet Yard, LLC and Airco, LLC. Airco, LLC is a wholly-owned subsidiary of Stratus Aero Partners LLC.

November 3, 2017,

a newly-formed, wholly-owned subsidiary

of the Company entered into an agreement with Blue Clay Capital Management, LLC (“Blue Clay Capital”), an investment management firm based in Minneapolis, Minnesota, pursuant to which such subsidiary is to acquire the assets of, and assume certain liabilities of, Blue Clay Capital in return for payment to Blue Clay Capital of

$1.00,

subject to adjustment for Blue Clay Capital’s net working capital as of the closing date. Gary S. Kohler, a director of the Company, is the sole owner of Blue Clay Capital. In connection with such acquisition transaction, a subsidiary of the Company is to replace Blue Clay Capital as the managing general partner of certain investment funds currently managed by Blue Clay Capital, Mr. Kohler is to enter into an employment agreement with such subsidiary to serve as its Chief Investment Officer in return for an annual salary of

$50,000

plus variable compensation based on the management and incentive fees to be paid to the subsidiary by certain of these investment funds and eligibility to participate in discretionary annual bonuses and David Woodis, President of Blue Clay Capital, is to enter into an employment agreement with such subsidiary to serve as its Chief Operating Officer and Chief Financial Officer in return for an annual salary of

$125,000

plus revenue sharing and eligibility to participate in discretionary annual bonuses. Completion of these transactions is subject to certain conditions, including the consent of limited partners of these investment funds to the extent required by the agreements governing these funds.

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Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncement s In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014 - 09, Revenue from Contracts with Customers (Topic 606 ) . ASU 2014 - 09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014 - 09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014 - 09 is effective for annual reporting periods beginning after December 15, 2017 ( our fiscal year 2019 ), including interim reporting periods within that reporting year, with earlier adoption permitted for reporting periods beginning after December 15, 2016. ASU 2014 - 09 may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities would recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity, and disclose all line items in the year of adoption as if they were prepared under the old revenue guidance. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. Because our evaluation is not complete, we have not yet quantified and, accordingly, are not able to make a reasonable estimate of the impact of the new revenue standard on our consolidated financial statements at this time. We anticipate completing our evaluation during the third or fourth quarter of fiscal year 2018. In July 2015, the FASB issued ASU 2 015 - 11, Simplifying the Measurement of Inventory (Topic 330 ) . This standard amends existing guidance to simplify the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendment in ASU 2015 - 11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015 - 11 to be material to the Company's consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015 - 17, Balance Sheet Classification of Deferred Taxes (Topic 740 ) . This standard eliminates the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Under this new guidance, entities will be required to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016 with earlier adoption permitted. We adopted this amendment with the quarter ended June 30, 2017. In Janua ry 2016, the FASB issued ASU 2016 - 01, Recognition and Measurement of Financial Assets and Financial Liabilities , that amends the guidance on the classification and measurement of financial instruments (Subtopic 825 - 10 ). ASU 2016 - 01 becomes effective in fiscal years beginning after December 15, 2017, including interim periods therein. ASU 2016 - 01 removes equity securities from the scope of Accounting Standards Codification (“ASC”) Topic 320 and creates ASC Topic 321, Investments – Equity Securities . Under the new guidance, all equity securities with readily determinable fair values are measured at fair value on the statement of financial position, with changes in fair value recorded through earnings. The update eliminates the option to record changes in the fair value of equity securities through other comprehensive income. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. The Company currently has investments in available for sale securities and the fair value changes of such securities are, other than in the case of possible other-than-temporary impairments, currently reflected in other comprehensive income. Provided that the Company continues to hold available for sale securities after adoption of the amended guidance, earnings are likely to become more volatile. In February 2016, the FASB issued ASU 2016 - 02, Leases (Topic 842 ) . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as either sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company is evaluating the impact of the adoption of the standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016 - 09, Compensation – Stock Compensation (Topic 718 ): Improvements to Employee Share-Based Payment Accounting , which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016 - 09 is effective for annual reporting periods beginning after December 15, 2016 and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. This accounting guidance became effective for the Company beginning with the June 30, 2017 quarter. In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments—Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments . This standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is currently evaluating the impact of the adoption of the standard on its consolidated financial statements and disclosures. In August 2016, the FASB issued ASU 2016 - 15, Statement of Cash Flows (Topic 230 ): Classification of Certain Cash Receipts and Cash Payments . ASU 2016 - 15 clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The update requires retrospective application to all periods presented but may be applied prospectively if retrospective application is impracticable. The Company is currently evaluating the impact of the adoption of the standard on its consolidated financial statements and disclosures. In November 2016, the FASB issued ASU 2016 - 18, Statement of Cash Flows (Topic 230 ): Restricted Cash . ASU 2016 - 18 requires that the statement of cash flows explain the changes in the combined total of restricted and unrestricted cash balance. Amounts generally described as restricted cash or restricted cash equivalents will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Further, the ASU requires a reconciliation of balances from the statement of cash flows to the balance sheet in situations in which the balance sheet includes more than one line item of cash, cash equivalents, and restricted cash. Companies will also be disclosing the nature of the restrictions. ASU 2016 - 18 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the standard on its consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017 - 01, Clarifying the Definition of a Business (Topic 805 ) . This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years that begin after December 15, 2017 and is to be applied prospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017 - 04, Intangibles – Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment . This ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step Two from the goodwill impairment test. Step Two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this standard, an entity will recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The standard is effective for any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements. In May 2017, the FASB issued ASU 2017 - 09, Compensation – Stock Compensation (Topic 718 ): Scope of Modification Accounting , which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. This update is effective for all entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements. The Company has not yet concluded how the new standard will impact the consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact o n the Company’s financial position, results of operations or cash flows.

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Note 2 - Acquisitions (Tables)

6 Months Ended

Sep. 30, 2017

Acquired Inventory and Principal Business Assets, and Assumed Specified Liabilities, of Aircraft Instrument and Radio Company, Incorporated, and Aircraft Instrument and Radio Services, Inc. [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	May 2, 2017

Assets acquired and liabilities assumed at fair value:
Accounts receivables	$	748,936
Inventories		3,100,000
Property and equipment		26,748
Accounts payable		(313,117	)
Accrued expenses		(382,687	)
Net assets acquired	$	3,179,880

Net assets acquired		3,179,880
Consideration paid		2,400,000
Bargain purchase gain	$	779,880

Contrail Aviation Inc. [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	July 18, 2016

ASSETS
Accounts receivable	$	1,357,499
Inventories		2,118,475
Prepaid expenses		30,121
Property and equipment		33,095
Intangible assets - non-compete		69,700
Intangible assets - tradename		322,000
Intangible assets - certification		47,000
Intangible assets - customer relationship		451,000
Goodwill		4,227,205
Total assets	$	8,656,095

LIABILITIES
Accounts payable	$	366,575
Accrued expenses		43,652
Earnout liability		2,900,000
Total liabilities	$	3,310,227


Net Assets	$	5,345,868

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Note 4 - Net Earnings Per Share (Tables)

6 Months Ended

Sep. 30, 2017

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended September 30,				Six Months Ended September 30,
	2017		2016		2017		2016

Net income (loss) attributable to Air T, Inc. Stockholders	$	421,701	$	1,084,102	$	1,390,090	$	(4,667,369	)
Income (Loss) Per Share:
Basic	$	0.21	$	0.53	$	0.68	$	(2.11	)
Diluted	$	0.21	$	0.53	$	0.68	$	(2.11	)
Weighted Average Shares Outstanding:
Basic		2,042,789		2,042,789		2,042,789		2,207,658
Diluted		2,046,945		2,047,976		2,047,305		2,207,658

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Note 6 - Inventories (Tables)

6 Months Ended

Sep. 30, 2017

Schedule of Inventory, Current [Table Text Block]

	September 30, 2017			March 31, 2017
Ground support service parts	$	2,661,735		$	2,447,395
Ground equipment manufacturing:
Raw materials		3,587,397			1,452,201
Work in process		1,822,043			832,635
Finished goods		3,739,160			10,001,193
Printing equipment and maintenance
Raw materials		2,700,219			3,325,142
Work in process		-			324,949
Finished goods		790,344			790,345
Commercial jet engines and parts		5,263,691			3,407,339
Total inventories		20,564,589			22,581,199
Reserves		(2,432,855	)		(2,802,356	)

Total, net of reserves	$	18,131,734		$	19,778,843

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Note 9 - Variable Interest Entities (Tables) - Delphax [Member]

6 Months Ended

Sep. 30, 2017

Condensed Balance Sheet [Table Text Block]

	September 30, 2017			March 31, 2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	449,077		$	328,327
Accounts receivable, net		884,289			2,036,221
Inventories		188,410			1,941,729
Other current assets		431,416			1,145,274
Total current assets		1,953,192			5,451,551
Property and equipment		-			8,007
Total assets	$	1,953,192		$	5,459,558

LIABILITIES
Current liabilities:
Accounts payable	$	2,152,573		$	2,482,578
Income tax payable		11,312			11,312
Accrued expenses		3,114,145			3,627,162
Short-term debt		3,033,436			4,714,257
Total current liabilities		8,311,466			10,835,309

Net Assets	$	(6,358,274	)	$	(5,375,751	)

Condensed Income Statement [Table Text Block]

	Six Months Ended September 30,
	2017			2016
	(Unaudited)			(Unaudited)

Operating Revenues	$	4,434,303		$	4,958,826

Operating Expenses:
Cost of sales		2,583,807			7,723,898
General and administrative		1,001,896			1,704,852
Research and development		195,653			750,882
Depreciation, amortization and impairment		8,007			1,726,404
		3,789,363			11,906,036
Operating Income (Loss)		644,940			(6,947,210	)

Non-operating Income (Expenses), net		(188,000	)		(45,147	)

Income (Loss) Before Income Taxes		456,940			(6,992,357	)

Income Taxes		-			-

Net Income (Loss)	$	456,940		$	(6,992,357	)

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Note 10 - Geographical Information (Tables)

6 Months Ended

Sep. 30, 2017

Long-lived Assets by Geographic Areas [Table Text Block]

	September 30, 2017		March 31, 2017
United States, the Company ’s country of domicile	$	5,772,340	$	5,323,471
Foreign		6,902,723		1,017
Total property and equipment, net	$	12,675,063	$	5,324,488

Revenue from External Customers by Geographic Areas [Table Text Block]

	September 30, 2017		September 30, 2016
United States, the Company ’s country of domicile	$	85,319,178	$	64,393,507
Foreign		11,239,685		4,622,736
Total revenue	$	96,558,863	$	69,016,243

XML 38 R28.htm IDEA: XBRL DOCUMENT

Note 11 - Segment Information (Tables)

6 Months Ended

Sep. 30, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended September 30,						Six Months Ended September 30,
	2017			2016			2017			2016
Operating Revenues:
Overnight Air Cargo	$	18,081,073		$	17,151,214		$	34,823,248		$	33,788,379
Ground Equipment Sales:
Domestic		15,046,892			10,305,102			20,323,258			15,691,171
International		469,217			783,775			1,142,507			2,068,394
Total Ground Equipment Sales		15,516,109			11,088,877			21,465,765			17,759,565
Ground Support Services		8,801,326			7,038,151			17,914,399			13,838,193
Printing Equipment and Maintenance:
Domestic		280,328			1,016,697			1,724,310			3,249,403
International		1,022,594			732,041			2,709,993			1,709,423
Total Printing Equipment and Maintenance		1,302,922			1,748,738			4,434,303			4,958,826
Commercial Jet Engines and Parts:
Domestic		2,275,190			450,188			10,466,075			450,188
International		2,851,729			844,919			7,387,185			844,919
Total Commercial Jet Engines and Parts		5,126,919			1,295,107			17,853,260			1,295,107
Leasing		34,816			221,745			70,563			463,515
Corporate		290,533			281,926			581,065			563,852
Intercompany		(292,208	)		(302,768	)		(583,740	)		(3,651,194	)
Total	$	48,861,490		$	38,522,990		$	96,558,863		$	69,016,243

Operating Income (Loss):
Overnight Air Cargo	$	896,506		$	440,804		$	1,713,172		$	1,419,981
Ground Equipment Sales		1,165,430			1,243,037			1,331,224			1,585,357
Ground Support Services		276,113			(240,717	)		632,937			(350,769	)
Printing Equipment and Maintenance		(482,222	)		(11,851	)		441,814			(6,947,210	)
Commercial Jet Engines and Parts		(48,760	)		42,806			762,180			42,806
Leasing		4,671			72,157			11,569			179,415
Corporate		(1,385,863	)		(531,696	)		(2,255,779	)		(1,463,533	)
Intercompany		49,783			7,199			51,109			(517,790	)
Total	$	475,658		$	1,021,739		$	2,688,226		$	(6,051,743	)

Capital Expenditures:
Overnight Air Cargo	$	20,346		$	36,040		$	20,346		$	36,040
Ground Equipment Sales		2,258			-			2,258			19,596
Ground Support Services		117,919			110,728			143,284			212,139
Printing Equipment and Maintenance		8,491			-			8,491			9,927
Commercial Jet Engines and Parts		7,078,004			-			7,082,981			-
Corporate		542,202			244,703			1,001,855			633,338
Leasing		-			-			-			3,066,500
Intercompany		-			-			-			(3,066,500	)
Total	$	7,769,220		$	391,471		$	8,259,215		$	911,040

Depreciation, amortization and impairment:
Overnight Air Cargo	$	30,128		$	30,100		$	61,144		$	59,309
Ground Equipment Sales		117,499			47,326			250,379			94,920
Ground Support Services		113,625			87,273			225,256			170,709
Printing Equipment and Maintenance		3,316			45,803			8,007			1,726,404
Commercial Jet Engines and Parts		151,338			28,406			197,114			28,406
Leasing		14,810			85,921			29,622			218,290
Corporate		100,146			36,042			159,493			66,785
Intercompany		(1,324	)		(7,199	)		(2,650	)		(21,550	)
Total	$	529,538		$	353,672		$	928,365		$	2,343,273

XML 39 R29.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions (Details Textual)

1 Months Ended

3 Months Ended

6 Months Ended

14 Months Ended

Jun. 07, 2017

USD ($)

May 02, 2017

USD ($)

Oct. 31, 2016

USD ($)

Oct. 03, 2016

USD ($)

Jul. 18, 2016

USD ($)

May 31, 2017

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Sep. 30, 2017

USD ($)

Mar. 31, 2017

USD ($)

^[1]

Deferred Income Tax Expense (Benefit)

$ (501,880)

Business Combination, Bargain Purchase, Gain Recognized, Amount, Net

501,880

Contrail Aviation Inc. [Member]

4,417,605

$ 4,417,605

Business Combination, Contingent Consideration Arrangement, EBITDA During Earnout Period

2,100,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment Respect Earnout Period

1,000,000

Contrail Aviation Inc. [Member] | Other Noncurrent Liabilities [Member]

$ 4,227,205

Business Combination, Contingent Consideration Arrangement, Earnout Payment

2,900,000

Jet Yard, LLC [Member]

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member]

Business combination, Equity Interests in Acquiree, Percentage

$ 4,033,367

21.00%

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents

$ 904,000

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value High, Per Year

1,500,000

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

3,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 1 [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

1,500,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 1 [Member] | Maximum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

1,500,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 2 [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

1,500,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment

$ 1,500,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment Calculation, Multiplier

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 2 [Member] | Minimum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

$ 1,500,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 2 [Member] | Maximum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

2,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 3 [Member]

Business Combination, Contingent Consideration Arrangement, Earnout Payment

1,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 3 [Member] | Minimum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

2,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 3 [Member] | Maximum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

4,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 4 [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

1,500,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment

1,500,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 4 [Member] | Minimum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

4,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 5 [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

15,000,000

Business Combination, Contingent Consideration Arrangement, Earnout Payment

3,000,000

Contrail Aviation Support LLC. [Member] | Contrail Aviation Inc. [Member] | EBITDA Range 5 [Member] | Minimum [Member]

Business Combination, Contingent Consideration Arrangements, EBITDA Threshold

$ 15,000,000

AirCo [Member] | Acquired Inventory and Principal Business Assets, and Assumed Specified Liabilities, of Aircraft Instrument and Radio Company, Incorporated, and Aircraft Instrument and Radio Services, Inc. [Member]

Deferred Income Tax Expense (Benefit)

$ 2,400,000

278,000

Business Combination, Bargain Purchase, Gain Recognized, Amount, Net

502,000

Deferred Tax Liabilities, Net

$ 278,000

Stratus Aero Partners LLC [Member] | Jet Yard, LLC [Member]

Business Acquisition, Percentage of Voting Interests Acquired

$ 15,000

100.00%

Stratus Aero Partners LLC [Member] | Jet Yard, LLC [Member] | Lease Contract with Pinal Country, Arizona [Member]

Area of Total Facility | a

48.5

Lessee, Operating Lease, Renewal Term

30 years

Area of Lease Facility | a

2.6

Operating Lease, Lessee, Initial Annual Rent, Amount

$ 27,000

Operating Lease, Lessee, Annual Rent, After Annual Increments, Amount

$ 152,000

Operating Lease, Lessee, Annual Rent, Increase Percentage

5.00%

Operating Lease, Lessee, Annual Rent Increase, Incremental Period

3 years

Global Aviation Services, LLC [Member] | D&D GSE Support, Inc. [Member]

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

$ 400,000

100,000

Payments to Acquire Business, Additional Payment After Closing, Amount

100,000

Payments to Acquire Business, Final Payment, Payable

100,000

Payments to Acquire Business, Final Payment, Payable, Monthly Installments, Amount

16,667

Business Combination, Consideration Transferred

700,000

Business Combination, Consideration Transferred, Liabilities Incurred

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets

200,000

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill

300,000

SAIC [Member] | TFS Partners [Member]

$ 200,000

Payments to Acquire Equity Method Investments

$ 500,000

Equity Method Investment, Ownership Percentage

40.00%

TFS Partners [Member] | Fence Store LLC [Member]

Equity Method Investment, Ownership Percentage

60.00%

Global Aviation Partners Llc and Global Aviation Service [Member] | Jet Yard, LLC [Member]

Deferred Tax Assets, Net of Valuation Allowance, Current

$ 0

[1]	Derived from audited consolidated financial statements

XML 40 R30.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions - Assets Acquired and Liabilities Assumed by Contrail Aviation (Details) - USD ($)

Sep. 30, 2017

Mar. 31, 2017

^[1]

Jul. 18, 2016

ASSETS

Contrail Aviation Inc. [Member]

$ 4,417,605

ASSETS

Contrail Aviation Inc. [Member] | Contrail Aviation Support LLC. [Member]

$ 4,227,205

ASSETS

1,357,499

2,118,475

Prepaid expenses

30,121

Property and equipment

33,095

Total assets

8,656,095

LIABILITIES

366,575

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Earnout Liability

43,652

2,900,000

Total liabilities

3,310,227

Net Assets

5,345,868

Contrail Aviation Inc. [Member] | Contrail Aviation Support LLC. [Member] | Noncompete Agreements [Member]

ASSETS

Contrail Aviation Inc. [Member] | Contrail Aviation Support LLC. [Member] | Trade Names [Member]

69,700

ASSETS

Contrail Aviation Inc. [Member] | Contrail Aviation Support LLC. [Member] | Certification Marks [Member]

322,000

ASSETS

Contrail Aviation Inc. [Member] | Contrail Aviation Support LLC. [Member] | Customer Relationships [Member]

47,000

ASSETS

Ground support service parts

$ 451,000

[1]	Derived from audited consolidated financial statements

XML 41 R31.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions - Assets Acquired and Liabilities Assumed by AirCo (Details) - USD ($)		6 Months Ended
	May 02, 2017	Sep. 30, 2017	Sep. 30, 2016
Consideration paid		$ 2,900,000	$ 4,033,367
AirCo [Member] \| Acquired Inventory and Principal Business Assets, and Assumed Specified Liabilities, of Aircraft Instrument and Radio Company, Incorporated, and Aircraft Instrument and Radio Services, Inc. [Member]
Accounts receivable	$ 748,936
Inventories	3,100,000
Property and equipment	26,748
Accounts payable	(313,117)
Accrued expenses	(382,687)
Net Assets	3,179,880
Consideration paid	2,400,000
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 779,880

XML 42 R32.htm IDEA: XBRL DOCUMENT

Note 3 - Income Taxes (Details Textual)				1 Months Ended	3 Months Ended		6 Months Ended
Note 3 - Income Taxes (Details Textual)	May 02, 2017 USD ($)	Jul. 18, 2016 USD ($)	Nov. 24, 2015 USD ($)	May 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Income Tax Expense (Benefit)					$ 281,000	$ 375,000	$ 655,000	$ 3,000
Effective Income Tax Rate Reconciliation, Percent							27.70%	0.10%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent							34.00%
Estimated Future Liquidation Loss on Tax Attributes					2,900,000		$ 2,900,000
Deferred Tax Assets, Valuation Allowance			$ 11,661,000		13,791,000	12,770,000	13,791,000	$ 12,770,000
Deferred Income Tax Expense (Benefit)							(501,880)
Business Combination, Bargain Purchase, Gain Recognized, Amount, Net							$ 501,880
Delphax [Member] \| Foreign Tax Authority [Member]
Operating Loss Carryforwards						6,300,000		6,300,000
Delphax [Member] \| Domestic Tax Authority [Member]
Operating Loss Carryforwards						13,200,000		13,200,000
Delphax [Member] \| Domestic Tax Authority [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount						4,300,000		4,300,000
Delphax [Member] \| Domestic Tax Authority [Member] \| Alternative Minimum Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount						311,000		311,000
Delphax Canada [Member] \| Foreign Tax Authority [Member]
Operating Loss Carryforwards						4,000,000		4,000,000
Tax Credit Carryforward, Amount						$ 4,300,000		$ 4,300,000
Canada, France, and United Kingdom [Member]
Number of Foreign Subsidiaries					3		3
Delphax [Member]
Business Acquisition, Percentage of Voting Interests Acquired			38.00%
Payments to Acquire Businesses, Gross			$ 1,050,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member]
Business combination, Equity Interests in Acquiree, Percentage		21.00%
Business Combination, Equity Interest in Acquiree, Deemed to be Acquired, Percentage		79.00%
Payments to Acquire Businesses, Gross		$ 4,033,367
Acquired Inventory and Principal Business Assets, and Assumed Specified Liabilities, of Aircraft Instrument and Radio Company, Incorporated, and Aircraft Instrument and Radio Services, Inc. [Member] \| AirCo [Member]
Payments to Acquire Businesses, Gross	$ 2,400,000			$ 2,400,000
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 779,880
Deferred Tax Liabilities, Net					$ 278,000		$ 278,000
Deferred Income Tax Expense (Benefit)							278,000
Business Combination, Bargain Purchase, Gain Recognized, Amount, Net							$ 502,000

XML 43 R33.htm IDEA: XBRL DOCUMENT

Note 4 - Net Earnings Per Share - Earnings Per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss) attributable to Air T, Inc. Stockholders	$ 421,701	$ 1,084,102	$ 1,390,090	$ (4,667,369)
Earnings (Loss) Per Share:
Basic (in dollars per share)	$ 0.21	$ 0.53	$ 0.68	$ (2.11)
Diluted (in dollars per share)	$ 0.21	$ 0.53	$ 0.68	$ (2.11)
Weighted Average Shares Outstanding:
Basic (in shares)	2,042,789	2,042,789	2,042,789	2,207,658
Diluted (in shares)	2,046,945	2,047,976	2,047,305	2,207,658

XML 44 R34.htm IDEA: XBRL DOCUMENT

Note 5 - Marketable Securities (Details Textual) - USD ($) $ / shares in Units, shares in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 06, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017	Jun. 30, 2016	Jun. 29, 2016
Marketable Securities			$ 4,594,000	$ 4,177,000		$ 4,594,000
Available-for-sale Securities, Amortized Cost Basis			4,331,000	4,294,000		4,331,000
Available-for-sale Securities, Gross Unrealized Gain				170,000		279,000
Available-for-sale Securities, Gross Unrealized Loss				287,000		16,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value				1,518,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss				$ 286,000
Available-for-sale Securities, Number of Shares				1,820
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net				$ 771,173	$ 1,502,239
Insignia [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.70
Insignia [Member]
Available-for-sale Securities, Amortized Cost Basis		$ 1,724,000	2,463,000			$ 2,463,000	$ 3,604,000	$ 5,106,000
Available-for-sale Securities, Ownership Percentage				15.00%
Available-for-sale Securities, Acquired During Period, Amortized Cost Basis		32,000
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net		$ 3,414,000
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities			$ 112,000

XML 45 R35.htm IDEA: XBRL DOCUMENT

Note 6 - Inventories - Inventories (Details) - USD ($)

Sep. 30, 2017

Mar. 31, 2017

$ 2,661,735

$ 2,447,395

Inventory Gross

20,564,589

22,581,199

Reserves

(2,432,855)

(2,802,356)

Total, net of reserves

18,131,734

19,778,843

^[1]

Ground Equipment Manufacturing [Member]

Raw materials

3,587,397

1,452,201

Work in process

1,822,043

832,635

Finished goods

3,739,160

10,001,193

Printing Equipment and Maintenance [Member]

Raw materials

2,700,219

3,325,142

Work in process

324,949

Finished goods

790,344

790,345

Commercial Jet Engines Inventory [Member]

Inventory Gross

$ 5,263,691

$ 3,407,339

[1]	Derived from audited consolidated financial statements

XML 46 R36.htm IDEA: XBRL DOCUMENT

Note 7 - Stock Based Compensation (Details Textual) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0	0	0
Allocated Share-based Compensation Expense	$ 0	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 0		$ 0
Delphax [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Allocated Share-based Compensation Expense			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0

XML 47 R37.htm IDEA: XBRL DOCUMENT

Note 8 - Financing Arrangements (Details Textual)

6 Months Ended

Jun. 28, 2017

May 05, 2017

USD ($)

May 02, 2017

USD ($)

Sep. 30, 2017

USD ($)

Oct. 27, 2017

USD ($)

Mar. 31, 2017

USD ($)

Oct. 31, 2016

USD ($)

Minnesota Bank and Trust [Member] | AirCo [Member] | Subsequent Event [Member]

$ 1,625,000

$ 25,000

^[1]

LIBOR Rate

1.24%

Debt Instrument, Face Amount

$ 3,441,000

Term Loan [Member]

Debt Instrument, Periodic Payment, Principal

$ 2,400,000

$ 1,600,000

$ 200,000

Debt Instrument, Basis Spread on Variable Rate

0.25%

Construction Loan Agreement [Member] | BB&T [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 1,480,000

Long-term Line of Credit

1,474,000

Revolving Credit Facility [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 25,000,000

Line of Credit Facility, Commitment Fee Percentage

0.15%

Debt Instrument, Interest Rate, Increase (Decrease)

0.25%

Minimum Consolidated Tangible Net Worth

$ 18,000,000

Minimum Fixed Charge Coverage Ratio

1.35

Maximum Leverage Ratio

3.5

Maximum Amount of Assets the Company and It's Subsidiaries Lease or Hold for Leasing Required by the Financial Covenants for the Credit Agreement

$ 5,000,000

Long-term Line of Credit

$ 13,900,000

$ 17,900,000

Revolving Credit Facility [Member] | Period of April 01, 2016 to March 31, 2017 [Member]

Percentage of Consolidated Net Income

50.00%

Revolving Credit Facility [Member] | Period of October 01, 2016 to December 31, 2016 [Member]

Minimum Asset Coverage Ratio

1.5

Revolving Credit Facility [Member] | After March 31, 2017 [Member]

Minimum Asset Coverage Ratio

1.75

Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument, Basis Spread on Variable Rate

2.25%

Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]

Derivative, Basis Spread on Variable Rate

1.50%

Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]

Derivative, Basis Spread on Variable Rate

2.00%

Revolving Credit Facility [Member] | Letter of Credit [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 500,000

Contrail Loan Agreement's, Revolving Line of Credit [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 15,000,000

Long-term Line of Credit

4,913,000

Line of Credit Facility, Remaining Borrowing Capacity

$ 10,100,000

Guarantor Obligations, Maximum Exposure, Undiscounted

$ 1,600,000

Minimum Cash Flow Coverage Ratio

Minimum Tangible Net Worth

$ 3,500,000

Minimum Debt Service Coverage Ratio

1.1

Contrail Loan Agreement's, Revolving Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument, Basis Spread on Variable Rate

3.00%

[1]	Derived from audited consolidated financial statements

XML 48 R38.htm IDEA: XBRL DOCUMENT

Note 9 - Variable Interest Entities (Details Textual)

3 Months Ended

6 Months Ended

12 Months Ended

Jan. 06, 2017

USD ($)

Nov. 24, 2015

USD ($)

$ / shares

Jun. 30, 2016

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Mar. 31, 2016

USD ($)

Jul. 26, 2017

USD ($)

Mar. 31, 2017

USD ($)

Jan. 05, 2017

USD ($)

Nov. 24, 2016

USD ($)

$ 1,625,000

$ 25,000

^[1]

$ 4,417,605

4,417,605

^[1]

Percentage of Consolidated Subsidiaries Dividends Attributable to Parent

67.00%

Percentage of Consolidated Subsidiaries Dividends Attributable to Noncontrolling Interests

33.00%

Net Income (Loss) Attributable to Noncontrolling Interest, Percentage

0.00%

33.00%

Goodwill, Impairment Loss

$ 375,000

$ 275,000

$ 100,000

Delphax [Member] | Trade Names and Patents [Member]

Impairment of Intangible Assets, Finite-lived

1,385,000

50,000

Line of Credit Facility, Maximum Borrowing Capacity

$ 2,500,000

$ 7,000,000

Repayments of Long-term Lines of Credit

$ 1,260,000

Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Purchase Orders from Customers

100.00%

Line of Credit Facility, Maximum Borrowing Capacity, Maximum Value of Purchase Orders Included in Borrowing Base

$ 500,000

Line of Credit Facility, Interest Rate at Period End

2.50%

Delphax [Member] | Delphax Canada [Member]

Financing Receivable, Net

$ 1,510,000

Upon Execution of the Amendment [Member] | Delphax [Member]

Line of Credit Facility, Commitment Fee Amount

$ 25,000

Upon Repayment in Full of All Loans Under the Senior Credit Agreement [Member] | Delphax [Member]

Line of Credit Facility, Commitment Fee Amount

$ 50,000

Intangible Assets, Net (Including Goodwill)

Severance Costs

$ 5,610,000

$ 1,400,000

Delphax [Member] | Senior Subordinated Note [Member]

Delphax [Member] | Senior Subordinated Note [Member] | Short-term Debt [Member]

$ 2,375,000

2,500,000

Interest Payable, Current

658,000

388,000

Delphax [Member] | Delphax Senior Credit Agreement [Member]

Delphax [Member] | Delphax Senior Debt [Member]

1,541,000

Delphax [Member] | Senior Subordinated Note and Delphax Senior Debt Credit Agreement [Member] | Nonoperating Income (Expense) [Member]

$ 112,000

Interest Expense

$ 440,000

$ 116,000

Business Combination, Warrants Acquired, Condition Under Which Warrants May Be Exercised for Cash, Number of Times the Aggregate Exercise Price

$ 1,050,000

0.95

Business Combination, Warrants Acquired, Exercise for Cash, Measurement Period

20 years

Delphax [Member] | Series B Preferred Stock of Delphax [Member]

Business Combination, Shares Acquired | shares

43,000

Business Combination, Warrants Acquired, Number of Securities Called by Warrants | shares

95,600

Business Combination, Warrants Acquired, Exercise Price Per Share | $ / shares

$ 33.4728

Convertible Preferred Stock, Shares Issued upon Conversion | shares

100

Business Combination,Shares Acquired, Percentage, of the Shares of Acquired Entity's Common Stock That Would Be Outstanding Assuming Conversion

38.00%

Percentage of Preferred Stock Initially Purchasable under Warrant Permitted to Acquire

50.00%

Shares of Preferred Stock Acquired in Connection With the Exercise of the Warrant as a Percentage of the Number of Preferred Shares Initially Purchasable under the Warrant

50.00%

Five Year Senior Subordinated Promissory Note [Member] | Delphax [Member]

Debt Instrument, Face Amount

$ 2,500,000

Debt Instrument, Interest Rate, Stated Percentage

8.50%

Delphax 90-Day Senior Subordinated Note [Member] | Delphax [Member]

Debt Instrument, Cancellation, Outstanding Principal Surrendered

$ 500,000

Senior Notes [Member] | Delphax Canada [Member]

Debt Instrument, Interest Rate, Stated Percentage

18.00%

10.50%

Line of Credit Facility, Forbearance Fee Amount

$ 141,000

[1]	Derived from audited consolidated financial statements

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Note 9 - Variable Interest Entities - Carrying Values of Assets and Liabilities of Delphax Included on the Company's Consolidated Balance Sheet (Details) - USD ($)

Sep. 30, 2017

Mar. 31, 2017

Sep. 30, 2016

Mar. 31, 2016

$ 1,358,919

^[1]

$ 2,763,365

^[1]

$ 2,191,740

$ 5,345,455

Accounts receivable, net

^[1]

20,000,483

18,923,787

18,131,734

19,778,843

^[1]

Other current assets

1,306,757

1,672,475

^[1]

Total current assets

47,007,900

48,859,078

^[1]

Property and equipment

12,675,063

5,324,488

^[1]

Total assets

70,463,941

65,335,189

^[1]

12,003,439

11,571,156

^[1]

9,206,625

8,672,815

^[1]

Total current liabilities

1,625,000

25,000

^[1]

22,835,064

20,268,971

^[1]

Delphax [Member] | Reportable Legal Entities [Member]

449,077

328,327

Accounts receivable, net

884,289

2,036,221

188,410

1,941,729

Other current assets

431,416

1,145,274

Total current assets

1,953,192

5,451,551

Property and equipment

8,007

Total assets

1,953,192

5,459,558

2,152,573

2,482,578

Income tax payable

11,312

3,114,145

3,627,162