Equity Method Investments

9 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in Insignia Systems, Inc. (“Insignia”) is accounted for under the equity method of accounting. The Company has elected a three-month lag upon adoption of the equity method. At December 31, 2019, the Company held approximately 3.5 million shares of Insignia’s common stock representing approximately 29% of the outstanding shares. For the quarter ended December 31, 2019, the Company recorded a loss of $284,975 as its share of Insignia’s net loss for the three months ended September 30, 2019 along with a basis difference adjustment of $24,032. In addition, due to the adverse financial results as reported in Insignia's Form 10-Qs for the quarters ended June 30 and September 30, 2019 in addition to consideration of analyst reports and other qualitative factors, the Company determined that it has suffered from an other-than-temporary impairment in its investment in Insignia. As such, the Company recorded an impairment charge of $1,094,890 during the quarter ended December 31, 2019, totaling impairment charges of 2,304,779 for the nine months ended December 31, 2019. After the impairment, the Company's net investment basis in Insignia is $2,035,650 as of December 31, 2019.

Summarized unaudited financial information for Insignia for the nine months ended September 30, 2019 and 2018 is as follows (in thousands):


	Nine Months Ended September 30, 2019		Nine Months Ended September 30, 2018
Revenue	$	15,636	$	25,119
Gross Profit	3,165		9,314
Operating income (loss)	(3,091)		1,331
Net income (loss)	(2,562)		993
Net income (loss) attributable to Air T, Inc. stockholders	$	(749)	$	203