airt20161231

9,054,684

7,003,660

Income tax payable

11,312

Total Current Liabilities

6,706,927

6,842,874

Short-term debt

1,163,577

1,859,300

16,925,188

15,717,146

Long-term debt

18,358,742

4,835

Deferred income taxes

546,000

Other non-current liabilities

2,992,435

615,241

Total Liabilities

38,822,365

16,883,222

Redeemable non-controlling interest

1,127,019

Commitments and Contingencies (Notes 9 and 13)

Equity:

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

Common stock, $.25 par value; 4,000,000 shares authorized, 2,042,789 shares issued and outstanding at December 31, 2016, 2,372,527 shares issued and outstanding at March 31, 2016

510,696

593,131

Additional paid-in capital

4,260,030

4,947,665

Retained earnings

20,452,393

29,350,980

Accumulated other comprehensive income (loss), net

134,130

(117,898)

Total Air T, Inc. Stockholders' Equity

25,357,249

34,773,878

Non-controlling Interests

(3,278,584)

497,652

Total Equity

22,078,665

35,271,530

Total Liabilities and Equity

$ 62,028,049

$ 52,154,752

[1]	Derived from audited consolidated financial statements.

XML 15 R5.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Allowance for doubtful accounts	$ 437,000	$ 426,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized (in shares)	50,000	50,000
Common stock, par value (in dollars per share)	$ 0.25	$ 0.25
Common stock, authorized (in shares)	4,000,000	4,000,000
Common stock, issued (in shares)	2,042,789	2,372,527
Common stock, outstanding (in shares)	2,042,789	2,372,527

XML 16 R6.htm IDEA: XBRL DOCUMENT

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

9 Months Ended

Dec. 31, 2016

Dec. 31, 2015

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ (5,244,274)

$ 5,504,120

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

(Gain) loss on sale of marketable securities

(582,910)

6,837

(Gain) loss on sale of property and equipment

13,909

(50,837)

Change in accounts receivable and inventory reserves

1,409,575

(157,059)

Depreciation, amortization and impairment

2,755,071

667,595

Change in cash surrender value of life insurance

(164,632)

(120,159)

Warranty reserve.

(66,869)

(93,228)

Compensation expense related to stock options

31,000

Other-than-temporary impairment loss on investments

1,502,239

Change in operating assets and liabilities:

Accounts receivable

(1,350,470)

(3,576,456)

Notes receivable and other non-trade receivables

(669,943)

(137,634)

Inventories

(8,569,464)

383,383

Prepaid expenses and other

450,498

80,138

1,615,448

(565,144)

Income tax payable / receivable

(317,093)

152,974

(873,557)

897,266

Non-current liabilities

(580,110)

(34,310)

Total adjustments

(5,428,308)

(2,515,634)

Net cash (used in) provided by operating activities

(10,672,582)

2,988,486

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of marketable securities

(2,505,519)

(3,278,466)

Proceeds from sale of marketable securities

(5,781,001)

(54,958)

Net cash flow used in business combinations

(4,573,700)

78,000

Capital expenditures

(1,518,007)

(1,051,055)

Proceeds from sale of property and equipment

6,281

185,830

Net cash used in investing activities

(2,809,944)

(4,010,733)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from line of credit

52,462,391

14,472,273

Payment on line of credit

(34,103,649)

(19,291,273)

Proceeds from lease funding

7,428

Repurchase of common stock

(7,917,009)

Net cash provided by (used in) financing activities

9,741,175

(7,842,572)

Effect of foreign currency exchange rates on cash and cash equivalents

17,786

(12,985)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(3,723,565)

(8,877,804)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

5,345,455

^[1]

14,165,120

CASH AND CASH EQUIVALENTS AT END OF PERIOD

1,621,890

5,287,316

SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES:

Finished goods inventory transferred to equipment leased to customers

321,345

1,288,474

Change in fair value of marketable securities

(893,225)

171,220

SUPPLEMENTAL DISCLOSURE OF INVESTING ACTIVITIES:

Non-controlling interest in acquired business

1,072,161

1,713,000

Acquired business earnout contracts and payable

3,075,000

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest

158,100

56,546

Income taxes

1,028,457

1,966,881

Delphax [Member]

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment on line of credit

$ (700,558)

$ (3,031,000)

[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, 2015	2,372,527
Balance at Mar. 31, 2015	$ 593,131	$ 4,929,090	$ 24,407,915	$ (134,913)		$ 29,795,223
Non-controlling interest in acquired business					1,713,000	1,713,000
Net income (loss)			6,029,260		(525,140)	5,504,120
Net change from marketable securities, net of tax				109,230		109,230
Foreign currency translation loss				(7,000)	(11,000)	(18,000)
Funding on residual sharing agreements		7,428				7,428
Balance (in shares) at Dec. 31, 2015	2,372,527
Balance at Dec. 31, 2015	$ 593,131	4,936,518	30,437,175	(32,683)	1,176,860	37,111,001
Balance (in shares) at Mar. 31, 2016	2,372,527
Balance at Mar. 31, 2016	$ 593,131	4,947,665	29,350,980	(117,898)	497,652	35,271,530
Non-controlling interest in acquired business						1,072,161
Net income (loss)			(1,751,648)		(3,547,484)	(5,244,274)
Net change from marketable securities, net of tax				392,232		392,232
Foreign currency translation loss				(140,204)	(228,752)	(368,956)
Balance (in shares) at Dec. 31, 2016	2,042,789
Balance at Dec. 31, 2016	$ 510,696	4,260,030	20,452,393	134,130	(3,278,584)	22,078,665
Repurchase of common stock (in shares)	(329,738)
Repurchase of common stock	$ (82,435)	$ (687,635)	$ (7,146,939)			$ (7,917,009)

XML 18 R8.htm IDEA: XBRL DOCUMENT

Note 1 - Financial Statement Presentation

9 Months Ended

Dec. 31, 2016

Significant Accounting Policies [Text Block]

1.	Financial Statement Presentation

-K for the year ended

March

31,

2016.

The results of operations for the periods ended

December

are not necessarily indicative of the operating results for the full year.

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

New Accounting Pronouncements

May

2014,

a comprehensive new revenue recognition standard was issued that will supersede nearly all existing revenue recognition guidance. The new guidance introduces a

five

-step model under which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after

December

15,

2017,

including interim periods within that reporting period. Management is currently evaluating the new guidance, including possible transition alternatives, to determine the impact it will have on the Company’s consolidated financial statements.

July

2015,

a standard was issued that 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. It is effective for fiscal years beginning after

December

15,

2016

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

January

2016,

the Financial Accounting Standard Board (FASB) published Accounting Standards Update (ASU)

2016

Financial Instruments Overall: Recognition and Measurement of Financial Assets and Financial Liabilities that amends the guidance on the classification and measurement of financial instruments. ASU

2016

becomes effective for public business entities 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 of 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 No.

2016

02,

Leases. 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 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 new accounting guidance for simplifying the treatment of employee share-based payments. The primary objective is to improve areas of Generally Accepted Accounting Principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of information provided to users of financial statements. This accounting guidance will be effective for the Company beginning with its

2018

fiscal year. The Company is currently evaluating the impact of this new guidance.

June

2016,

a standard was issued that 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. The standard is effective for annual periods beginning after

December

15,

2019,

and interim periods therein. Early adoption is permitted for annual periods beginning after

December

15,

2018,

and interim periods therein. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements.

XML 19 R9.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions

9 Months Ended

Dec. 31, 2016

Business Combination Disclosure [Text Block]

2.	Acquisitions

Acquisition of Interests in Delphax

Pursuant to a Securities Purchase Agreement dated as of

October

2015

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

November

24,

2015

(the “Delphax 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 under, and cancellation of, a

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

October

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 initially bore interest at an annual rate of

8.5%,

with a default rate of interest at an annual rate of

10.5%.

Interest on the Senior Subordinated Note has accrued at the default rate of interest since

September

2016.

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

2015

by Delphax, Delphax Canada, the Company and the senior lender (the “Senior Lender”) that provided a revolving credit facility under an agreement with Delphax and Delphax Canada (the “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 are subordinated to the rights of the Senior Lender under the Senior Credit Agreement. As described in greater detail in Note

16,

January

2017

the Company acquired the rights and obligations of the Senior Lender under the Senior Credit Agreement, which was amended as of that date.

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 and approximately

31%

of the outstanding shares assuming conversion of the Series B Preferred Stock and the issuance of all the shares of Delphax common stock reserved for issuance under Delphax’s employee stock option plans.

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

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. As of

December

31,

2016,

two

designees of the Company continued to serve on the board of directors of Delphax, which had a total of

five

remaining members, as the Company had not exercised its right to elect

four

sevenths

of the members of the board of directors of Delphax.

The Warrant expires on

November

24,

2021.

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.

As a result of the above transactions, the Company determined that it had obtained control over Delphax and we consolidated Delphax in our consolidated financial statements beginning on

November

24,

2015.

The following table summarizes the fair values of Delphax assets and liabilities as of the Delphax Closing Date:

	November 24, 2015

ASSETS
Cash and cash equivalents	$	586,061
Accounts receivable		1,740,210
Inventories		3,972,802
Other current assets		693,590
Property and equipment		722,714
Intangible assets - trade name		120,000
Intangible assets - patents		1,090,000
Goodwill		375,408
Total assets	$	9,300,785

LIABILITIES
Accounts payable	$	1,663,199
Accrued expenses		1,949,522
Income tax payable		11,312
Debt		3,313,317
Other long-term liabilities		650,500
Total liabilities	$	7,587,850

Net Assets	$	1,712,935

The Company determined that it was reasonable to use the price it paid for its minority equity interest as the basis for estimating the total fair value of Delphax’s equity as of

November

24,

2015

acquisition date. The effect of the Company’s equity and debt investments of

$1,050,000

and

$2,500,000,

respectively, are not reflected in the above table. As such, the amounts presented reflect the fair values of Delphax’s assets and liabilities immediately prior to the Company’s investments. The net assets amount presented above is the estimated acquisition date fair value of the non-controlling interests in Delphax.

Delphax’s debt immediately prior to the acquisition included approximately

$508,000

due under the

-Day Senior Subordinated Note.

As further discussed in Note

10,

the Company recognized significant expenses in the

June

30,

2016

quarter associated with Delphax employee benefit costs and write-downs of Delphax inventories, long-lived tangible and intangible assets, and goodwill. The Company concluded that the charges were necessary to reflect changes in market conditions and business outlook during the

June

30,

2016

quarter and were not associated with conditions that existed as of the Delphax Closing Date. As such, these adjustments were not accounted for as “measurement period” adjustments in the accompanying condensed consolidated financial statements.

Acquisition of Interests in Contrail

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)

$4,033,368

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.

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 (x) the EBITDA generated with respect to such Earnout Period minus

$1,500,000,

and (y)

two

(2);

(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.

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 provisional 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		3,986,865
Total assets	$	8,415,755

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

Net Assets	$	5,105,528

December

31,

2016

condensed consolidated balance sheet. The Company estimates that the fair value of Contrail Aviation did not change by more than an inconsequential amount between

July

18,

2016,

September

30,

2016,

and

December

31,

2016.

Therefore, other than allocation of the Seller’s proportionate share of Contrail Aviation’s net earnings for the period since acquisition, the Company has not adjusted the redeemable non-controlling interest balance from the Contrail Closing Date amount.

Pro forma financial information is not presented as the results are not material to the Company’s consolidated financial statements.

Amortization expense associated with the acquired intangible assets totaled approximately

$60,000

for the

nine

months ended

December

31,

2016.

Other Acquisitions

October

2016,

a newly formed subsidiary of the Company, Global Aviation 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 no 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 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 (the “Asset Purchase Agreement”) signed on

October

31,

2016,

the Company’s Global Aviation Services, LLC subsidiary (“GAS”), acquired, effective as of

October

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.

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

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.

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

Amortization expense associated with the acquired intangible assets was approximately

$5,000

during the

nine

months ended

December

31,

2016.

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.

Pro forma financial information is not presented for the above acquisitions as the results are not material to the Company’s consolidated financial statements.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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+ Details

XML 20 R10.htm IDEA: XBRL DOCUMENT

Note 3 - Income Taxes

9 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

3.	Income Taxes

During the

nine

-month period ended

December

31,

2016,

the Company recorded income tax expense of

$152,000

which resulted in an overall effective tax rate of

24.17%

(not including the activity of Delphax) and -

2.99%

(including the activity of Delphax). For the

three

-month period ended

December

31,

2016,

the Company recorded income tax expense of

$149,000.

The Company records income taxes using an estimated annual effective tax rate for interim reporting. Under the annual effective tax rate method, jurisdictions with a projected loss where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate.

The individually largest factor contributing to the difference between the federal statutory rate of

34%

and the Company’s effective tax rate for the

three

and

nine

-month period ending

December

31,

2016

was the recognition of a valuation allowance against Delphax’s pretax loss in the period. The income tax provision for the periods differs from the federal statutory rate due also to the effect of state income taxes and the federal domestic production activities deduction. Additionally, the rates for the

three

and

nine

-month periods ended

December

31,

2016

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

831(b).

During the

nine

-month period ended

December

31,

2015,

the Company recorded income tax expense of

$2,867,000

which resulted in an overall effective tax rate of

34.25%.

For the

three

-month period ended

December

31,

2015,

the Company recorded income tax expense of

$1,499,000.

The estimated annual effective tax rate differed from the U. S. federal statutory rate primarily due to the benefit for the Section

831(b)

income exclusion for SAIC, the benefit for the federal domestic production activities deduction, and state income tax expense.

As described in Note

effective on

November

24,

2015,

Air T, Inc. purchased interests in Delphax. 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 their respective jurisdictions. With few exceptions, Delphax is no longer subject to examinations by income tax authorities for tax years before

2011.

Delphax maintains a

September

fiscal year.

September

30,

2015

was Delphax’s most recently ended fiscal prior to Air T, Inc.’s acquisition. For that fiscal year, Delphax and its subsidiaries had estimated foreign and domestic tax loss carryforwards of

$6.0

million and

$7.9

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

$4.5

million, which were 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

$325,000

were available to offset future income tax with no expiration date. Delphax has not yet filed income tax returns for its fiscal year ended

September

30,

2016.

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. Additionally, based on the anticipated liquidation of Delphax Canada,

$3.2

million of the previously disclosed foreign tax loss carryforwards,

$4.5

million of foreign research and development credit carryforwards, as well as other temporary differences such as fixed asset basis differences will likely go unutilized. See additional information regarding Delphax Canada in Note

10.

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

December

31,

2016

was approximately

$12,352,000.

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.

December

31,

2016.

The differences in question would lead to taxable or deductible amounts upon certain events, including a repatriation of foreign assets or a sale or liquidation of the respective entity. Determination of the amount of any unrecognized deferred income tax assets or liabilities on these differences is not practicable at this time due to the complexities of the hypothetical calculation.

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 of the acquisition date, there were no differences between the book and tax basis of the investment.

XML 21 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Net Earnings Per Share

9 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

4.	Net Earnings Per Share

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016			2015

Net earnings (loss) attributable to Air T, Inc. Stockholders	$	856,105	$	2,971,340	$	(1,751,648	)	$	6,029,260
Earnings (Loss) per share:
Basic	$	0.42	$	1.25	$	(0.81	)	$	2.54
Diluted	$	0.42	$	1.24	$	(0.81	)	$	2.52
Weighted average shares outstanding:
Basic		2,042,789		2,372,527		2,152,301			2,372,527
Diluted		2,047,637		2,396,999		2,152,301			2,396,645

The Company reported a net loss for the

nine

-month period ended

December

31,

2016.

As a result of the net loss, there is no potential dilutive effect of outstanding stock options for that period.

XML 22 R12.htm IDEA: XBRL DOCUMENT

Note 5 - Investment Securities Available for Sale

9 Months Ended

Dec. 31, 2016

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

5.	Investment Securities Available For Sale

Investments in available-for-sale marketable securities at

December

31,

2016

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

$6,073,000,

an aggregate cost basis of

$5,598,000,

gross unrealized gains aggregating

$614,000

and gross unrealized losses aggregating

$139,000.

Marketable securities at

March

31,

2016

consisted of investments with a fair value of

$9,656,000,

an aggregate cost basis of

$9,791,000,

gross unrealized gains aggregating

$422,000

and gross unrealized losses aggregating

$557,000.

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

months as of

December

31,

2016

had an aggregate fair value and unrealized loss of

$613,000

and

$139,000,

respectively. The corresponding amounts at

March

31,

2016

were

$5,903,000

and

$163,000.

As of

December

31,

2016,

none of the Company’s investments in securities has been in a continuous loss for more than

months. Securities that had been in a continuous unrealized loss position for more than

months as of

March

31,

2016,

had an aggregate fair value and unrealized loss of

$4,711,000

and

$395,000

respectively.

June

30,

2016

assessment, the Company concluded that it had suffered an other-than-temporary impairment in its investment in the common stock of Insignia Systems, Inc. (“Insignia”). In reaching this conclusion, management gave significant weight to the fact that, as of

June

30,

2016,

the Company’s investment in Insignia had been in a continuous unrealized loss position for well over

one

year and that the magnitude of the unrealized loss had increased sharply during the quarter ended

June

30,

2016.

While management believed that it was reasonably possible that the unrealized loss at

June

30,

2016

would reverse prior to the Company’s divestment of the security, management concluded that the weight of the evidence warranted the other-than-temporary impairment. Consistent with the applicable accounting guidance, the Company’s cost basis in the Insignia investment was lowered to

$3,604,000

June

30,

2016

to reflect the impairment charge. The fair value of the Company’s Insignia investment was

$4,034,000

as of

December

31,

2016,

reflecting an unrealized gain position of

$430,000.

As a result of the above-described Insignia other-than-temporary impairment assessment, the Company’s condensed consolidated statements of income (loss) for the

three

months ended

June

30,

2016

and the

nine

months ended

December

31,

2016

include a non-operating charge of

$1,502,000.

There was no other-than-temporary impairment charge for the corresponding prior year periods.

November

28,

2016,

Insignia announced that its Board of Directors had declared a special dividend of

$0.70

per share. On

December

13,

2016,

Insignia announced that the record date for the special dividend would be

January

2017.

That is, stockholders owning Insignia shares on

January

2017

would be entitled to receive the dividend. The Company’s accounting policy for such dividends is to recognize any related income on the record date, rather than on the declaration date. As such, the Company’s condensed consolidated statements of income (loss) for the

three

and

nine

months ended

December

31,

2016

do not reflect any amount associated with this Insignia special dividend. See Note

for discussion of related

fourth

fiscal quarter accounting considerations.

twelve

months, the investment was classified in non-current assets as of

March

31,

2016.

While the Company’s intention to hold the Insignia shares has not changed, the Company reclassified a portion of the investment to current assets in its

December

31,

2016

condensed consolidated balance sheet. The amount of this reclassification was equal to the dividend expected to be received in

January

2017.

The Company realized gains of

$583,000

and

$0,

respectively, from the sale of securities during the

nine

-month periods ended

December

31,

2016

and

December

31,

2015.

The marketable securities held by the Company as of

December

31,

2016,

and

March

31,

2016

are classified as available-for-sale securities.

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

fair value measurements.

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

XML 23 R13.htm IDEA: XBRL DOCUMENT

Note 6 - Inventories

9 Months Ended

Dec. 31, 2016

Inventory Disclosure [Text Block]

6.	Inventories

Inventories consisted of the following:

	December 31, 2016			March 31, 2016
Ground support service parts	$	2,498,473		$	1,566,694
Ground equipment manufacturing:
Raw materials		2,018,052			1,549,810
Work in process		1,692,322			408,213
Finished goods		9,396,326			4,328,812
Printing equipment and maintenance
Raw materials		2,326,857			3,319,939
Work in process		322,537			759,446
Finished goods		1,090,370			562,912
Commercial jet engines		3,580,930			-
Total inventories		22,925,867			12,495,826
Reserves		(1,979,147	)		(221,722	)

Total, net of reserves	$	20,946,720		$	12,274,104

During the quarter ended

June

30,

2016,

the Company recorded certain inventory reserves associated with Delphax. See additional information in Note

10.

XML 24 R14.htm IDEA: XBRL DOCUMENT

Note 7 - Stock-based Compensation

9 Months Ended

Dec. 31, 2016

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 no 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. These assumptions are judgmental.

options were granted or exercised under Air T, Inc.’s stock option plan during the

nine

-month periods ended

December

31,

2016

and

2015.

Likewise, there was

stock-based compensation expense in these periods. At

December

31,

2016,

there was

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

three

months and

nine

months ended

December

31,

2016,

zero

and

30,000

stock options expired, respectively.

options were granted or exercised during the

December

2016

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

not

recognize any stock-based compensation expense during the

December

2016

quarter.

A summary of Air T, Inc. stock option activity during the

nine

months ended

December

31,

2016

is presented below:

	Shares

Outstanding as of March 31, 2016		40,000
Activity during the nine months ended December 31, 2016
Granted		-
Exercised		-
Canceled (forfeited/expired)		(30,000	)
Outstanding as of December 31, 2016		10,000
Exerciseable as of December 31, 2016		10,000

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

XML 25 R15.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Repurchase

9 Months Ended

Dec. 31, 2016

Stock Repurchase [Text Block]

8.	Stock Repurchase

July

2016,

the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with Sardar Biglari, Biglari Capital Corp. and The Lion Fund II, L.P. (collectively, the “Biglari Group”), pursuant to which the Company purchased

329,738

shares of common stock, par value

$0.25

(the “Common Stock”), of the Company for

$24.01

per share (the “Per Share Purchase Price”), resulting in an aggregate purchase price of

$7,917,009.

The Per Share Purchase Price was equal, and determined by reference, to the volume-weighted average price of the Common Stock for the

thirty

(30)

trading days preceding the date of the Securities Purchase Agreement.

Pursuant to the terms of the Securities Purchase Agreement, for a period of

four

years following the date of the Securities Purchase Agreement, each member of the Biglari Group agreed to customary standstill restrictions (including customary provisions regarding matters submitted to shareholders and other governance matters), and the parties to the Securities Purchase Agreement agreed to abide by customary non-disparagement provisions in connection with the parties’ relationship with the Company.

The Common Stock was retired upon repurchase. The accompanying condensed consolidated statement of equity for the

nine

-month period ended

December

31,

2016

reflects the resultant respective reductions in common stock, additional paid-in capital, and retained earnings.

XML 26 R16.htm IDEA: XBRL DOCUMENT

Note 9 - Financing Arrangements

9 Months Ended

Dec. 31, 2016

Debt Disclosure [Text Block]

9.	Financing Arrangements

April

2015,

the Company replaced its existing

$7.0

million credit line with a senior secured revolving credit facility of

$20.0

million (the “Revolving Credit Facility”). The Revolving Credit Facility includes a

$500,000

sublimit for issuances of letters of credit. Under the Revolving Credit Facility, each of the Company and its wholly-owned operating subsidiaries

may

make borrowings. Borrowings under the Revolving Credit Facility bear interest (payable monthly) at an annual rate of

one

-month LIBOR plus a margin, which margin is based on a consolidated leverage ratio. At

December

31,

2016,

the annual interest rate on borrowings under the Revolving Credit Facility was LIBOR plus

1.50%.

In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of

0.15%.

Amounts applied to repay borrowings under the Revolving Credit Facility

may

be reborrowed, subject to the terms of the facility.

July

15,

2016,

the Company and its subsidiaries, Mountain Air Cargo, Inc., Global Ground Support, LLC, CSA Air, Inc., Global Aviation Services, LLC and Air T Global Leasing, LLC entered into a First Amendment dated as of

July

15,

2016,

(the “First Amendment”) with Branch Banking and Trust Company (“BB&T”) to amend the Credit Agreement (as amended, the “Credit Agreement”) governing the Revolving Credit Facility. The First Amendment modified the Credit Agreement to not require that Contrail Aviation Support, LLC and Delphax be joined as borrowers under the Credit Agreement, to permit the limited guaranty of certain indebtedness of Contrail Aviation Support, LLC, to revise certain covenants to address the treatment of Contrail Aviation Support, LLC and Delphax, and to effect conforming and other changes to defined terms. On

August

2016,

the Company and such subsidiaries entered into a Second Amendment dated as of

August

2016,

(the “Second Amendment”) with BB&T to further amend the Credit Agreement. The Second Amendment modified the Credit Agreement to increase the maximum amount available for borrowing under the Revolving Credit Facility from

$20.0

million to

$25.0

million, to extend the maturity of the Revolving Credit Facility from

April

2017

April

2018

and to adjust certain financial covenants.

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. As discussed in Note

10,

assets of Delphax can only be used to satisfy the obligations of Delphax. Furthermore, Delphax’s creditors do not have recourse to the assets of Air T, Inc. or its subsidiaries.

18.0

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

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 maximum consolidated leverage ratio of

3.5

1.0,

a minimum consolidated asset coverage ratio of

1.25

1.0

for the quarter ended

June

30,

2016

and the quarter ending

September

30,

2016,

1.50

1.0

for the quarters ending

December

31,

2016

and

March

31,

2017,

and

1.75

1.0

thereafter, and a covenant limiting the aggregate amount of assets the Company and its subsidiaries lease, or hold for leasing, to others to no more than

$5,000,000

at any time. The Company was not in compliance with the maximum consolidated leverage ratio covenant as of the

December

31,

2016

and

September

30,

2016

measurement dates. The lender has waived compliance with this covenant as of both of these measurement dates. The agreement governing the Credit Agreement 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 Corporation, and the occurrence of a material adverse effect upon the Company and the other borrowers as a whole.

As of

December

31,

2016,

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

$18.3

million. This balance is classified within long-term liabilities on the accompanying

December

31,

2016

condensed consolidated balance sheet.

borrowings under the Revolving Credit Facility were outstanding at

March

31,

2016.

October

31,

2016,

the Company and its subsidiaries, Mountain Air Cargo, Inc., Global Ground Support, LLC, CSA Air, Inc., Global Aviation Services, LLC, Air T Global Leasing, LLC, Global Aviation Partners LLC and Jet Yard, 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 to be located in Denver, North Carolina. Under the Construction Loan Agreement, the Company

may

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

December

31,

2016,

outstanding borrowings under the Construction Loan were

$77,000.

As of

December

31,

2016,

Delphax, through its Canadian subsidiary, Delphax Canada, maintained a debt facility pursuant to the Senior Credit Agreement consisting of a

$7.0

million revolving senior secured credit facility, subject to a borrowing base of North American accounts receivable and inventory. Because the Senior Credit Agreement prohibits the payment of cash dividends, at

December

31,

2016,

the facility has not been a source of liquidity to Air T, Inc. or any of its subsidiaries. Neither Air T nor any of its subsidiaries is a guarantor of Delphax’s obligations under the Senior Credit Agreement. The facility is secured by substantially all of Delphax’s North American assets, expires in

November

2018,

and is subject to certain financial covenants. The facility provided for interest based upon the prime rate plus a margin and an additional margin applicable during the pendency of a default (a total interest rate of

10.5%,

including the default margin, as of

December

31,

2016).

As of

December

31,

2016,

Delphax had aggregate borrowings of approximately

$1.2

million (approximately

$1.8

million at

March

31,

2016)

outstanding under the Senior Credit Agreement. As was the case at

March

31,

2016,

Delphax has advised that at

December

31,

2016

it was not in compliance with financial covenants under the Senior Credit Agreement. Due to Delphax’s noncompliance with financial covenants, at

December

31,

2016

the Senior Lender had the contractual right to cease permitting borrowings under the Senior Credit Agreement and to declare all amounts outstanding due and payable immediately. On

September

2016,

the Senior Lender gave Delphax notice of such default, applied the default interest margin, and communicated that it would be reducing the eligible inventory advance rate under the Senior Credit Agreement by

0.5%

per week for each week commencing

September

2016.

Delphax has been permitted to continue to make borrowings under the Senior Credit Agreement notwithstanding the defaults entitling the lender to terminate such access and demand immediate repayment of the full outstanding balance. As described in greater detail in Note

16,

January

2017

the Company acquired the rights and obligations of the Senior Lender under the Senior Credit Agreement, which was amended as of that date.

$12,000,000

or a borrowing base. The borrowing base is computed monthly and is equal to the sum of

75%

of the value of eligible inventory (up to a maximum of

$9,000,000)

and

80%

of outstanding eligible accounts receivable. The borrowing base at

December

31,

2016

was

$2.2

million. Borrowings under the Contrail Credit Agreement bear interest at a rate equal to

one

-month LIBOR plus

2.80%,

and mature in

January

2018.

first

-priority security interest in substantially all of the assets of Contrail Aviation and any such subsidiary guarantors, as applicable (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, real property, and proceeds of the foregoing). The obligations of Contrail Aviation under the Contrail Credit Agreement 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 Contrail Credit Agreement, plus costs of collection (the “BMO Limited Guaranty”).

1.75

1.0,

a maximum ratio of total liabilities to tangible net worth of

2.5

1.0,

and a

$10,000

limitation on annual operating lease payments.

51%

of the voting equity in Contrail Aviation.

December

31,

2016,

Contrail Aviation had

outstanding borrowings under the Contrail Credit Agreement. Contrail was in compliance with its bank covenants at

December

31,

2016.

XML 27 R17.htm IDEA: XBRL DOCUMENT

Note 10 - Variable Interest Entities

9 Months Ended

Dec. 31, 2016

Variable Interest Entity Disclosure [Text Block]

10.	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.

As described in Note

the Company acquired Delphax Series B Preferred Stock, loaned funds to Delphax, and acquired the Warrant. 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, particular weight was given to the Company’s current representation on Delphax’s board of directors and the provision which grants the Company control of such board beginning

June

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.

Refer to Note

for the fair values of the assets and liabilities of Delphax on the acquisition date.

The following table sets forth the carrying values of Delphax’s assets and liabilities as of

December

31,

2016,

and

March

31,

2016:

	December 31, 2016			March 31, 2016
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	95,357		$	249,528
Accounts receivable, net		2,000,183			1,433,494
Inventories		2,014,783			4,642,298
Other current assets		491,331			1,034,067
Total current assets		4,601,654			7,359,387
Property and equipment		33,474			625,684
Intangible assets		-			1,109,112
Goodwill		-			275,408
Other Assets		-			26,020
Total assets	$	4,635,128		$	9,395,611

LIABILITIES
Current liabilities:
Accounts payable	$	2,577,816		$	1,684,802
Income tax payable		11,312			11,312
Accrued expenses		3,562,787			1,926,340
Short-term debt		1,163,577			1,859,300
Total current liabilities		7,315,492			5,481,754
Long-term debt		2,748,471			2,581,107
Other long-term liabilities		-			606,358
Total liabilities	$	10,063,963		$	8,669,219

Net assets	$	(5,428,835	)	$	726,392

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

$248,000

and

$76,000

as of

December

31,

2016,

and

March

31,

2016,

respectively, of accrued interest due to the Company from Delphax Canada under the Senior Subordinated Note. This debt and accrued interest was eliminated for purposes of the Company’s accompanying

December

31,

2016

and

March

31,

2016

consolidated balance sheets.

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

Revenue and Expenses of Delphax

. Delphax’s revenues and expenses are included in the Company’s consolidated financial statements beginning

November

24,

2015.

Revenues and expenses prior to the date of initial consolidation are excluded. The following table sets forth the revenue and expenses of Delphax that, prior to intercompany eliminations, are included in the Company’s condensed consolidated statement of income (loss) for the

nine

months ended

December

31,

2016.

	For the Nine Months Ended December 31, 2016
	(Unaudited)

Operating revenues	$	7,648,724

Operating expenses:
Cost of sales		8,671,905
General and administrative		2,295,255
Research and development		858,480
Depreciation, amortization and impairment		1,713,322
		13,538,962
Operating loss		(5,890,238	)

Non-operating loss		103,966

Loss before income taxes		(5,786,272	)

Income taxes		-

Net loss	$	(5,786,272	)

As disclosed in the Company’s Form

-Q for 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.

There were no significant additions to inventory and severance reserves from

June

30,

2016

December

31,

2016.

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.

June

30,

2016,

a number of Delphax employees were either severed or furloughed. During the quarters ended

September

30,

2016

and

December

31,

2016,

Delphax significantly curtailed its production activities.

Based on all currently available relevant information including, among other considerations, the assessment of the outside advisory firm, the Company believes that Delphax or

one

of its creditors

may

initiate a formal receivership filing, which

may

result in an operating liquidation of Delphax Canada, Delphax’s primary, and sole manufacturing, subsidiary. While the potential and precise timing of such events cannot be predicted, the Company believes that it

may

commence during the

first

half of the Company’s

2018

fiscal year.

The following presents information on Delphax’s amortizable intangible assets and goodwill at

December

31,

2016

and

March

31,

2016:

	December 31, 2016			March 31, 2016
	(Unaudited)
Tradenames	$	120,000		$	120,000
Patents		1,090,000			1,090,000
Goodwill		375,000			375,000
		1,585,000			1,585,000
Less accumulated amortization and impairment		(1,585,000	)		(200,480	)
Intangible assets and goodwill, net	$	-		$	1,384,520

XML 28 R18.htm IDEA: XBRL DOCUMENT

Note 11 - Geographical Information

9 Months Ended

Dec. 31, 2016

Geographical Reporting Disclosure [Text Block]

11.	Geographical I nformation

Total property and equipment, net of accumulated depreciation, is located as follows as of

December

31,

2016,

and

March

31,

2016:

	December 31, 2016		March 31, 2016
	(Unaudited)
United States, the Company’s country of domicile	$	5,135,431	$	4,240,050
Foreign		33,474		337,724
Total property and equipment, net	$	5,168,905	$	4,577,774

Total revenue, based on customer location, is summarized in the following table for the

nine

-month periods ended

December

31,

2016

and

December

31,

2015:

	December 31, 2016		December 31, 2015
	(Unaudited)		(Unaudited)
United States, the Company’s country of domicile	$	96,223,786	$	108,883,473
Foreign		8,561,627		4,747,549
Total revenue	$	104,785,413	$	113,631,022

XML 29 R19.htm IDEA: XBRL DOCUMENT

Note 12 - Segment Information

9 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

12.	Segment Information

December

31,

2016,

the Company had

six

business segments. The overnight air cargo segment, comprised 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, comprised 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, comprised 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 comprised of Delphax and its subsidiaries. Delphax designs, manufactures and sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. See Note

for a discussion of market and business developments impacting Delphax. The Company’s leasing segment, comprised of the Company’s Air T Global Leasing, LLC subsidiary (“ATGL”), provides funding for equipment leasing transactions, which includes 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.

The commercial jet engines segment, comprised of Contrail Aviation and Jet Yard, engages in the business of acquiring surplus commercial jet engines and components and supplying surplus and aftermarket commercial jet engine components, as well as offering aircraft storage, parking and disassembly services. The segment commenced operations in

July

2016

upon Contrail Aviation’s acquisition of substantially all of the assets of Contrail Aviation Support, Inc.

Each business segment has separate management teams and infrastructures. We evaluate the performance of our business segments based on operating income.

March

2014,

the Company formed Space Age Insurance Company (“SAIC”), a captive insurance company licensed in Utah, and initially capitalized with

$250,000.

SAIC insures risks of the Company and its subsidiaries that were not previously insured by the Company’s insurance programs and underwrites

third

-party risk through certain reinsurance arrangements. Beginning with the

fourth

quarter of fiscal year

2016,

premiums paid to SAIC by the Company are allocated among the operating segments based on segment revenue and certain identified corporate expenses were allocated to the segments based on the relative benefit of those expenses to each segment. Amounts previously presented for the quarter and

nine

months ended

December

31,

2015

have been reclassified to conform to the current period allocation of these expenses

Segment data is summarized as follows:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2016			2015			2016			2015
Operating Revenues:
Overnight Air Cargo	$	17,099,640		$	18,674,458		$	50,888,019		$	48,949,401
Ground Equipment Sales:
Domestic		781,519			19,120,611			16,472,690			41,261,674
International		1,960,841			1,320,235			4,029,235			4,501,549
Total Ground Equipment Sales		2,742,360			20,440,846			20,501,925			45,763,223
Ground Support Services		7,579,661			6,559,110			21,417,854			17,974,239
Printing Equipment and Maintenance
Domestic		2,151,030			789,000			5,400,433			789,000
International		538,868			246,000			2,248,291			246,000
Total Printing Equipment and Maintenance		2,689,898			1,035,000			7,648,724			1,035,000
Commercial Jet Engines:
Domestic		1,558,983			-			2,009,171			-
International		1,439,182			-			2,284,101			-
Total Commercial Jet Engines		2,998,165			-			4,293,272			-
Leasing		37,547			5,718			501,062			5,718
Corporate		281,926			265,837			845,778			796,884
Intercompany		2,339,973			(362,396	)		(1,311,221	)		(893,443	)
Total	$	35,769,170		$	46,618,573		$	104,785,413		$	113,631,022

Operating Income (Loss):
Overnight Air Cargo	$	716,356		$	1,099,335		$	2,136,337		$	2,484,097
Ground Equipment Sales		(912,893	)		3,841,378			672,464			7,685,291
Ground Support Services		(41,199	)		(69,620	)		(391,968	)		(675,813	)
Printing Equipment and Maintenance		1,056,972			(883,000	)		(5,890,238	)		(883,000	)
Commercial Jet Engines		491,479			-			534,285			-
Leasing		226,011			(194	)		405,426			(194	)
Corporate		(453,577	)		(2,686	)		(1,917,110	)		(169,617	)
Intercompany		556,268			(95,096	)		38,478			(95,096	)
Total	$	1,639,417		$	3,890,117		$	(4,412,326	)	$	8,345,668

Capital Expenditures:
Overnight Air Cargo	$	43,542		$	6,618		$	79,582		$	82,607
Ground Equipment Sales		-			119,455			19,596			338,194
Ground Support Services		119,381			220,816			331,520			429,588
Printing Equipment and Maintenance		-			-			9,927			-
Commercial Jet Engines		50,154			-			50,154			-
Leasing		-			241,398			3,066,500			241,398
Corporate		393,890			190,733			1,027,228			200,666
Intercompany		-			(241,398	)		(3,066,500	)		(241,398	)
Total	$	606,967		$	537,622		$	1,518,007		$	1,051,055

Depreciation and Amortization:
Overnight Air Cargo	$	31,866		$	37,068		$	91,175		$	106,161
Ground Equipment Sales		359,021			165,401			453,941			364,465
Ground Support Services		103,600			60,993			274,309			149,560
Printing Equipment and Maintenance		(13,082	)		17,000			1,713,322			17,000
Commercial Jet Engines		38,221			-			66,627			-
Leasing		14,516			3,658			232,806			3,658
Corporate		49,390			13,817			116,175			28,214
Intercompany		(171,734	)		(1,463	)		(193,284	)		(1,463	)
Total	$	411,798		$	296,474		$	2,755,071		$	667,595

The elimination of intercompany revenues is related to the return during the

three

months ended

December

31,

2016

ten

commercial deicing units and a glycol recovery vehicle by ATGL to GGS and the sale of

two

élan printers by Delphax to ATGL during the

nine

months period ended

December

31,

2016,

along with the 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 entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

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Note 13 - Commitments and Contingencies

9 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

13.	Commitments and Contingencies

June

2016,

the Company acquired land and entered into an agreement to construct a new corporate headquarters facility in Denver, North Carolina for an aggregate amount of approximately

$2.0

million, with construction anticipated to be completed in fiscal year

2018.

This facility will replace the Company’s current headquarters which is leased from an entity owned by certain former officers and directors at an annual rental payment of approximately

$178,000.

There are currently no other commitments for significant capital expenditures.

As disclosed in Note

the Company has obligations under certain earn-out arrangements with the sellers of

two

acquired businesses.

As also disclosed in Note

Contrail Aviation has a put/call option arrangement with Contrail Aviation Support, Inc. for the member interests which Contrail Aviation Support, Inc. holds in Contrail Aviation. Contrail Aviation Support, Inc. is the former owner of the acquired Contrail business.

XML 31 R21.htm IDEA: XBRL DOCUMENT

Note 14 - Related Party Matters

9 Months Ended

Dec. 31, 2016

14.	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 us for

three

additional

two

-year option periods through

January

31,

2024.

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

Since

April

2015,

the Company’s leasing subsidiary has acquired interests in

two

equipment leases originated by Vantage Financial, LLC (“Vantage”) for aggregate payments to Vantage of approximately

$401,250.

The interests in the acquired leases entitle the Company’s leasing subsidiary to receive lease payments from the

third

parties leasing the equipment for a specified period. Pursuant to the agreements between the Company’s leasing subsidiary and Vantage, Vantage’s fees for servicing the equipment leases for the leasing subsidiary (approximately

$1,000)

were included in the acquisition payments. William R. Foudray, a director of the Company, is the Executive Vice President and a co-founder of Vantage. The amounts paid by the Company’s leasing subsidiary to Vantage to acquire these lease assets represent approximately

of Vantage’s outstanding lease assets at

December

31,

2016

and the servicing income represents less than

of Vantage’s annual revenues.

As described in Note

Contrail Aviation’s

December

31,

2016

balance sheet reflects an earnout liability to Contrail Aviation Support, Inc. of approximately

$2.9

million. Contrail Aviation Support, Inc. is wholly-owned by Joseph Kuhn, who is Contrail Aviation’s Chief Executive Officer and a related party of the Company.

In connection with the acquisition described in Note

on the Contrail Closing Date, Contrail Aviation entered into a lease for the premises formerly leased by Contrail Aviation Support, Inc. in the operation of the acquired Contrail business. The leased premises are owned by a limited liability company owned by Mr. Kuhn and another employee of Contrail Aviation. The lease has an initial term of

five

years and

may

be renewed by Contrail Aviation for an additional

five

-year period or terminated by Contrail Aviation after an initial

-month period upon payment of a termination fee equal to

six

times the then-current monthly rental amount. Monthly rent under the lease is initially

$13,081

and increases annually by

1.5%.

XML 32 R22.htm IDEA: XBRL DOCUMENT

Note 15 - Expiration of Rights Under Rights Agreement

9 Months Ended

Dec. 31, 2016

Expiration of Rights Under Rights Agreement [Text Block]

15.	Expiration of Rights under Rights Agreement

September

26,

2016,

a special committee of independent members of the Company’s Board of Directors, under authority delegated to such committee by the Board of Directors of the Company, resolved to amend the Rights Agreement (the “Rights Agreement”) dated as of

December

15,

2014

between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights Agent”), to accelerate the expiration of the Rights (as defined in the Rights Agreement) from

5:00

p.m., Eastern time, on

December

26,

2017

5:00

p.m., Eastern time, on

September

26,

2016.

Thereafter, on

September

26,

2016,

the Company and the Rights Agent entered into Amendment No.

(the “Amendment”) to the Rights Agreement to accelerate the expiration of the Rights from

5:00

p.m., Eastern time, on

December

26,

2017

5:00

p.m., Eastern time, on

September

26,

2016

(the “Final Expiration Time”). As a result of the Amendment, the Rights Agreement was effectively terminated on

September

26,

2016

and all of the Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired at the Final Expiration Time.

XML 33 R23.htm IDEA: XBRL DOCUMENT

Note 16 - Subsequent Events

9 Months Ended

Dec. 31, 2016

Subsequent Events [Text Block]

16.	Subsequent Events

Acquisition of Delphax Senior Credit Agreement

Pursuant to an Assignment and Acceptance Agreement dated

January

2017

between the Senior Lender and the Company, on

January

2017

the Company acquired all rights, and assumed all obligations, of the Senior Lender under the Senior Credit Agreement, including obligations, if any, to fund future borrowings under the Senior Credit Agreement. In connection with this transaction, the Company paid to the Senior Lender an amount equal to approximately

$1.26

million for the 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 Senior Credit Agreement to reduce the maximum amount of borrowings permitted to be outstanding under the 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 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 Senior Credit Agreement. On

January

2017,

the Company notified Delphax and Delphax Canada of certain “Events of Default” (as defined under the Senior Credit Agreement) existing under the Senior Credit Agreement and that the Company was reserving all rights to exercise remedies under the Senior Credit Agreement and that no delay in exercising any such remedy is to be construed as a waiver of any of its remedies.

January

2017,

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

January

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 no 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

2017,

the Company will 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.

Insignia Special D

ividend

As discussed in Note

Insignia’s Board of Directors announced on

November

28,

2016

a special dividend of

$0.70

per share. The Company received the cash dividend for owned shares on

January

2017.

The aggregate special dividend received by the Company was approximately

$1,200,000.

On the date of payment, the aggregate fair value of the Company’s Insignia investment declined by a materially similar amount. The Company is still in the process of finalizing its accounting treatment for this dividend, including consideration of the related decline in fair value the Insignia investment during the

fourth

fiscal quarter.

The net effect of the Insignia special dividend will be reflected in the Company’s

fourth

quarter consolidated statement of income (loss). Furthermore, because the further developments in the share price of Insignia during the quarter ended

March

31,

2017

cannot be predicted, there can be no certainty that there will not be other consolidated statement of income (loss) effects associated with the Company’s Insignia investment.

XML 34 R24.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements In May 2014, a comprehensive new revenue recognition standard was issued that will supersede nearly all existing revenue recognition guidance. The new guidance introduces a five -step model under which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Management is currently evaluating the new guidance, including possible transition alternatives, to determine the impact it will have on the Company’s consolidated financial statements. In July 2015, a standard was issued that 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. It is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The Company is evaluating the impact of adoption of this standard on its consolidated financial statements. In January 2016, the Financial Accounting Standard Board (FASB) published Accounting Standards Update (ASU) 2016 - 01 Financial Instruments Overall: Recognition and Measurement of Financial Assets and Financial Liabilities that amends the guidance on the classification and measurement of financial instruments. ASU 2016 - 01 becomes effective for public business entities 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 of 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 No. 2016 - 02, Leases. 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 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 new accounting guidance for simplifying the treatment of employee share-based payments. The primary objective is to improve areas of Generally Accepted Accounting Principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of information provided to users of financial statements. This accounting guidance will be effective for the Company beginning with its 2018 fiscal year. The Company is currently evaluating the impact of this new guidance. In June 2016, a standard was issued that 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. The standard is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements.

XML 35 R25.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions (Tables)

9 Months Ended

Dec. 31, 2016

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

	November 24, 2015

ASSETS
Cash and cash equivalents	$	586,061
Accounts receivable		1,740,210
Inventories		3,972,802
Other current assets		693,590
Property and equipment		722,714
Intangible assets - trade name		120,000
Intangible assets - patents		1,090,000
Goodwill		375,408
Total assets	$	9,300,785

LIABILITIES
Accounts payable	$	1,663,199
Accrued expenses		1,949,522
Income tax payable		11,312
Debt		3,313,317
Other long-term liabilities		650,500
Total liabilities	$	7,587,850

Net Assets	$	1,712,935

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		3,986,865
Total assets	$	8,415,755

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

Net Assets	$	5,105,528

XML 36 R26.htm IDEA: XBRL DOCUMENT

Note 4 - Net Earnings Per Share (Tables)

9 Months Ended

Dec. 31, 2016

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016			2015

Net earnings (loss) attributable to Air T, Inc. Stockholders	$	856,105	$	2,971,340	$	(1,751,648	)	$	6,029,260
Earnings (Loss) per share:
Basic	$	0.42	$	1.25	$	(0.81	)	$	2.54
Diluted	$	0.42	$	1.24	$	(0.81	)	$	2.52
Weighted average shares outstanding:
Basic		2,042,789		2,372,527		2,152,301			2,372,527
Diluted		2,047,637		2,396,999		2,152,301			2,396,645

XML 37 R27.htm IDEA: XBRL DOCUMENT

Note 6 - Inventories (Tables)

9 Months Ended

Dec. 31, 2016

Schedule of Inventory, Current [Table Text Block]

	December 31, 2016			March 31, 2016
Ground support service parts	$	2,498,473		$	1,566,694
Ground equipment manufacturing:
Raw materials		2,018,052			1,549,810
Work in process		1,692,322			408,213
Finished goods		9,396,326			4,328,812
Printing equipment and maintenance
Raw materials		2,326,857			3,319,939
Work in process		322,537			759,446
Finished goods		1,090,370			562,912
Commercial jet engines		3,580,930			-
Total inventories		22,925,867			12,495,826
Reserves		(1,979,147	)		(221,722	)

Total, net of reserves	$	20,946,720		$	12,274,104

XML 38 R28.htm IDEA: XBRL DOCUMENT

Note 7 - Stock-based Compensation (Tables)

9 Months Ended

Dec. 31, 2016

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Shares

Outstanding as of March 31, 2016		40,000
Activity during the nine months ended December 31, 2016
Granted		-
Exercised		-
Canceled (forfeited/expired)		(30,000	)
Outstanding as of December 31, 2016		10,000
Exerciseable as of December 31, 2016		10,000

XML 39 R29.htm IDEA: XBRL DOCUMENT

Note 10 - Variable Interest Entities (Tables) - Delphax [Member]

9 Months Ended

Dec. 31, 2016

Condensed Balance Sheet [Table Text Block]

	December 31, 2016			March 31, 2016
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	95,357		$	249,528
Accounts receivable, net		2,000,183			1,433,494
Inventories		2,014,783			4,642,298
Other current assets		491,331			1,034,067
Total current assets		4,601,654			7,359,387
Property and equipment		33,474			625,684
Intangible assets		-			1,109,112
Goodwill		-			275,408
Other Assets		-			26,020
Total assets	$	4,635,128		$	9,395,611

LIABILITIES
Current liabilities:
Accounts payable	$	2,577,816		$	1,684,802
Income tax payable		11,312			11,312
Accrued expenses		3,562,787			1,926,340
Short-term debt		1,163,577			1,859,300
Total current liabilities		7,315,492			5,481,754
Long-term debt		2,748,471			2,581,107
Other long-term liabilities		-			606,358
Total liabilities	$	10,063,963		$	8,669,219

Net assets	$	(5,428,835	)	$	726,392

Condensed Income Statement [Table Text Block]

	For the Nine Months Ended December 31, 2016
	(Unaudited)

Operating revenues	$	7,648,724

Operating expenses:
Cost of sales		8,671,905
General and administrative		2,295,255
Research and development		858,480
Depreciation, amortization and impairment		1,713,322
		13,538,962
Operating loss		(5,890,238	)

Non-operating loss		103,966

Loss before income taxes		(5,786,272	)

Income taxes		-

Net loss	$	(5,786,272	)

Schedule of Intangible Assets and Goodwill [Table Text Block]

	December 31, 2016			March 31, 2016
	(Unaudited)
Tradenames	$	120,000		$	120,000
Patents		1,090,000			1,090,000
Goodwill		375,000			375,000
		1,585,000			1,585,000
Less accumulated amortization and impairment		(1,585,000	)		(200,480	)
Intangible assets and goodwill, net	$	-		$	1,384,520

XML 40 R30.htm IDEA: XBRL DOCUMENT

Note 11 - Geographical Information (Tables)

9 Months Ended

Dec. 31, 2016

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

	December 31, 2016		March 31, 2016
	(Unaudited)
United States, the Company’s country of domicile	$	5,135,431	$	4,240,050
Foreign		33,474		337,724
Total property and equipment, net	$	5,168,905	$	4,577,774

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

	December 31, 2016		December 31, 2015
	(Unaudited)		(Unaudited)
United States, the Company’s country of domicile	$	96,223,786	$	108,883,473
Foreign		8,561,627		4,747,549
Total revenue	$	104,785,413	$	113,631,022

XML 41 R31.htm IDEA: XBRL DOCUMENT

Note 12 - Segment Information (Tables)

9 Months Ended

Dec. 31, 2016

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

	Three Months Ended December 31,						Nine Months Ended December 31,
	2016			2015			2016			2015
Operating Revenues:
Overnight Air Cargo	$	17,099,640		$	18,674,458		$	50,888,019		$	48,949,401
Ground Equipment Sales:
Domestic		781,519			19,120,611			16,472,690			41,261,674
International		1,960,841			1,320,235			4,029,235			4,501,549
Total Ground Equipment Sales		2,742,360			20,440,846			20,501,925			45,763,223
Ground Support Services		7,579,661			6,559,110			21,417,854			17,974,239
Printing Equipment and Maintenance
Domestic		2,151,030			789,000			5,400,433			789,000
International		538,868			246,000			2,248,291			246,000
Total Printing Equipment and Maintenance		2,689,898			1,035,000			7,648,724			1,035,000
Commercial Jet Engines:
Domestic		1,558,983			-			2,009,171			-
International		1,439,182			-			2,284,101			-
Total Commercial Jet Engines		2,998,165			-			4,293,272			-
Leasing		37,547			5,718			501,062			5,718
Corporate		281,926			265,837			845,778			796,884
Intercompany		2,339,973			(362,396	)		(1,311,221	)		(893,443	)
Total	$	35,769,170		$	46,618,573		$	104,785,413		$	113,631,022

Operating Income (Loss):
Overnight Air Cargo	$	716,356		$	1,099,335		$	2,136,337		$	2,484,097
Ground Equipment Sales		(912,893	)		3,841,378			672,464			7,685,291
Ground Support Services		(41,199	)		(69,620	)		(391,968	)		(675,813	)
Printing Equipment and Maintenance		1,056,972			(883,000	)		(5,890,238	)		(883,000	)
Commercial Jet Engines		491,479			-			534,285			-
Leasing		226,011			(194	)		405,426			(194	)
Corporate		(453,577	)		(2,686	)		(1,917,110	)		(169,617	)
Intercompany		556,268			(95,096	)		38,478			(95,096	)
Total	$	1,639,417		$	3,890,117		$	(4,412,326	)	$	8,345,668

Capital Expenditures:
Overnight Air Cargo	$	43,542		$	6,618		$	79,582		$	82,607
Ground Equipment Sales		-			119,455			19,596			338,194
Ground Support Services		119,381			220,816			331,520			429,588
Printing Equipment and Maintenance		-			-			9,927			-
Commercial Jet Engines		50,154			-			50,154			-
Leasing		-			241,398			3,066,500			241,398
Corporate		393,890			190,733			1,027,228			200,666
Intercompany		-			(241,398	)		(3,066,500	)		(241,398	)
Total	$	606,967		$	537,622		$	1,518,007		$	1,051,055

Depreciation and Amortization:
Overnight Air Cargo	$	31,866		$	37,068		$	91,175		$	106,161
Ground Equipment Sales		359,021			165,401			453,941			364,465
Ground Support Services		103,600			60,993			274,309			149,560
Printing Equipment and Maintenance		(13,082	)		17,000			1,713,322			17,000
Commercial Jet Engines		38,221			-			66,627			-
Leasing		14,516			3,658			232,806			3,658
Corporate		49,390			13,817			116,175			28,214
Intercompany		(171,734	)		(1,463	)		(193,284	)		(1,463	)
Total	$	411,798		$	296,474		$	2,755,071		$	667,595

XML 42 R32.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions (Details Textual)				9 Months Ended
Note 2 - Acquisitions (Details Textual)	Oct. 03, 2016 USD ($) a	Jul. 18, 2016 USD ($)	Nov. 24, 2015 USD ($) $ / shares shares	Dec. 31, 2016 USD ($)	Sep. 01, 2016	Mar. 31, 2016 USD ($)
Goodwill				$ 4,185,265		$ 275,408
Preferred Stock, Liquidation Preference Per Share \| $ / shares			$ 0
Preferred Stock, Dividend Rate, Percentage			0.00%
Deferred Tax Assets, Net of Valuation Allowance, Current				71,126		$ 291,000
Delphax [Member]
Payments to Acquire Businesses, Gross			$ 1,050,000
Business Combination, Warrants Acquired, Condition Under Which Warrants May Be Exercised for Cash, Number of Times the Aggregate Exercise Price			0.95
Business Combination, Warrants Acquired, Exercise for Cash, Measurement Period			20 days
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt			$ 3,313,317
Business Acquisition, Percentage of Voting Interests Acquired			38.00%
Goodwill			$ 375,408
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%
Business Combination, Shares Acquired, Percentage of the Shares of Acquired Entity's Common Stock that Would Be Outstanding Assuming Conversion and Issuance of All Shares Reserved for Issuance Under Employee Stock Option Plans			31.00%
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%
Contrail Aviation Inc. [Member]
Goodwill		$ 3,986,865
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member]
Payments to Acquire Businesses, Gross		$ 4,033,368
Business combination, Equity Interests in Acquiree, Percentage		21.00%
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
Amortization of Intangible Assets				60,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 1 [Member]
Business Combination, Contingent Consideration Arrangement, Earnout Payment		0
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 1 [Member] \| Maximum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		1,500,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 2 [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		$ 1,500,000
Business Combination, Contingent Consideration Arrangement, Earnout Payment Calculation, Multiplier		2
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 2 [Member] \| Maximum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		$ 2,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 2 [Member] \| Minimum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		1,500,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 3 [Member]
Business Combination, Contingent Consideration Arrangement, Earnout Payment		1,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 3 [Member] \| Maximum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		4,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 3 [Member] \| Minimum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		2,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 4 [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		1,500,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 4 [Member] \| Minimum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		4,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 5 [Member]
Business Combination, Contingent Consideration Arrangement, Earnout Payment		3,000,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| EBITDA Range 5 [Member] \| Minimum [Member]
Business Combination, Contingent Consideration Arrangements, EBITDA Threshold		$ 15,000,000
Jet Yard, LLC [Member] \| Global Aviation Partners LLC [Member]
Payments to Acquire Businesses, Gross	$ 15,000
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Jet Yard, LLC [Member] \| Global Aviation Partners LLC [Member] \| Lease Contract with Pinal Country, Arizona [Member]
Area of Total Facility \| a	48.5
Lessee Leasing Arrangements, Operating Leases, 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
Jet Yard, LLC [Member] \| Global Aviation Partners Llc and Global Aviation Service [Member]
Payments to Acquire Businesses, Gross	$ 400,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	100,000
Amortization of Intangible Assets				$ 5,000
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, 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
Goodwill	200,000
Business Combination, Consideration Transferred, Liabilities Incurred	0
Deferred Tax Assets, Net of Valuation Allowance, Current	$ 0
Five Year Senior Subordinated Promissory Note [Member] \| Delphax [Member]
Debt Instrument, Face Amount			$ 2,500,000
Debt Instrument, Interest Rate, Stated Percentage			8.50%		10.50%
Delphax 90-Day Senior Subordinated Note [Member] \| Delphax [Member]
Debt Instrument, Cancellation, Outstanding Principal Surrendered			$ 500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt			$ 508,000

XML 43 R33.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions - Fair Values of Delphax Assets and Liabilities as of the Delphax Closing Date (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016	Nov. 24, 2015
ASSETS
Goodwill	$ 4,185,265	$ 275,408
Delphax [Member]
ASSETS
Cash and cash equivalents			$ 586,061
Accounts receivable			1,740,210
Inventories			3,972,802
Other current assets			693,590
Property and equipment			722,714
Goodwill			375,408
Total assets			9,300,785
LIABILITIES
Accounts payable			1,663,199
Accrued expenses			1,949,522
Income tax payable			11,312
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt			3,313,317
Other long-term liabilities			650,500
Total liabilities			7,587,850
Net Assets			1,712,935
Delphax [Member] \| Trade Names [Member]
ASSETS
Intangible assets			120,000
Delphax [Member] \| Patents [Member]
ASSETS
Intangible assets			$ 1,090,000

XML 44 R34.htm IDEA: XBRL DOCUMENT

Note 2 - Acquisitions - Provisional Fair Values of Contrail Assets Acquired and Liabilities Assumed (Details) - USD ($)	Dec. 31, 2016	Jul. 18, 2016	Mar. 31, 2016
ASSETS
Goodwill	$ 4,185,265		$ 275,408
Contrail Aviation Inc. [Member]
ASSETS
Goodwill		$ 3,986,865
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member]
ASSETS
Accounts receivable		1,357,499
Inventories		2,118,475
Prepaid expenses		30,121
Property and equipment		33,095
Total assets		8,415,755
LIABILITIES
Accounts payable		366,575
Accrued expenses		43,652
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Earnout Liability		2,900,000
Total liabilities		3,310,227
Net Assets		5,105,528
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| Noncompete Agreements [Member]
ASSETS
Intangible assets - non-compete		69,700
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| Trade Names [Member]
ASSETS
Intangible assets - non-compete		322,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| Certification Marks [Member]
ASSETS
Intangible assets - non-compete		47,000
Contrail Aviation Inc. [Member] \| Contrail Aviation Support LLC. [Member] \| Customer Relationships [Member]
ASSETS
Intangible assets - non-compete		$ 451,000

XML 45 R35.htm IDEA: XBRL DOCUMENT

Note 3 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
Note 3 - Income Taxes (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Jul. 18, 2016	Nov. 24, 2015	Sep. 30, 2015
Income Tax Expense (Benefit)	$ 149,000	$ 1,499,000	$ 152,000	$ 2,867,000
Effective Income Tax Rate Reconciliation, Percent			24.17%	34.25%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%		34.00%
Deferred Tax Assets, Valuation Allowance	$ 12,352,000		$ 12,352,000			$ 11,661,000
Delphax [Member] \| Foreign Tax Authority [Member]
Operating Loss Carryforwards							$ 6,000,000
Tax Credit Carryforward, Amount	4,500,000		4,500,000
Delphax [Member] \| Domestic Tax Authority [Member]
Operating Loss Carryforwards							7,900,000
Tax Credit Carryforward, Amount	$ 3,200,000		$ 3,200,000
Delphax [Member] \| Domestic Tax Authority [Member] \| Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount							4,500,000
Delphax [Member] \| Domestic Tax Authority [Member] \| Alternative Minimum Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount							$ 325,000
Delphax [Member]
Effective Income Tax Rate Reconciliation, Percent			(2.99%)
Business Acquisition, Percentage of Voting Interests Acquired						38.00%
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%

XML 46 R36.htm IDEA: XBRL DOCUMENT

Note 4 - Net Earnings Per Share - Earnings Per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Net earnings (loss) attributable to Air T, Inc. Stockholders	$ 856,105	$ 2,971,340	$ (1,751,648)	$ 6,029,260
Earnings (Loss) Per Share:
Basic (in dollars per share)	$ 0.42	$ 1.25	$ (0.81)	$ 2.54
Diluted (in dollars per share)	$ 0.42	$ 1.24	$ (0.81)	$ 2.52
Weighted Average Shares Outstanding:
Basic (in shares)	2,042,789	2,372,527	2,152,301	2,372,527
Diluted (in shares)	2,047,637	2,396,999	2,152,301	2,396,645

XML 47 R37.htm IDEA: XBRL DOCUMENT

Note 5 - Investment Securities Available for Sale (Details Textual) - USD ($)		3 Months Ended				9 Months Ended		12 Months Ended
	Nov. 28, 2016	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Marketable Securities		$ 6,073,000				$ 6,073,000		$ 9,656,000
Available-for-sale Securities, Amortized Cost Basis		5,598,000				5,598,000		9,791,000
Available-for-sale Securities, Gross Unrealized Gain						614,000		422,000
Available-for-sale Securities, Gross Unrealized Loss						139,000		557,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value		613,000				613,000		5,903,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss						139,000		163,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		12				12		4,711,000
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss						12		$ 395,000
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net						1,502,239
Available-for-sale Securities, Gross Realized Gains						583,000	0
Insignia [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.70
Insignia [Member]
Available-for-sale Securities, Gross Unrealized Gain						430,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		4,034,000	$ 3,604,000			4,034,000
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net			$ 1,502,000		$ 0		$ 0
Investment Income, Dividend		$ 0				$ 0

XML 48 R38.htm IDEA: XBRL DOCUMENT

Note 6 - Inventories - Inventories (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Ground support service parts	$ 2,498,473	$ 1,566,694
Inventory Gross	22,925,867	12,495,826
Reserves	(1,979,147)	(221,722)
Total, net of reserves	20,946,720	12,274,104
Ground Equipment Manufacturing [Member]
Raw materials	2,018,052	1,549,810
Work in process	1,692,322	408,213
Finished goods	9,396,326	4,328,812
Printing Equipment and Maintenance [Member]
Raw materials	2,326,857	3,319,939
Work in process	322,537	759,446
Finished goods	1,090,370	562,912
Commercial Jet Engines Inventory [Member]
Inventory Gross	$ 3,580,930

XML 49 R39.htm IDEA: XBRL DOCUMENT

Note 7 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	0	30,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		0	0
Allocated Share-based Compensation Expense		$ 0	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
Delphax [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Allocated Share-based Compensation Expense	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0

XML 50 R40.htm IDEA: XBRL DOCUMENT

Note 7 - Stock Based Compensation - Summary of Stock Option Activity (Details)	9 Months Ended
	Dec. 31, 2016 shares	Dec. 31, 2015 shares
Outstanding (in shares)	40,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
Canceled (forfeited/expired) (in shares)	(30,000)
Outstanding (in shares)	10,000
Exerciseable (in shares)	10,000

XML 51 R41.htm IDEA: XBRL DOCUMENT

Note 8 - Stock Repurchase (Details Textual) - USD ($)		9 Months Ended
Note 8 - Stock Repurchase (Details Textual) - USD ($)	Jul. 01, 2016	Dec. 31, 2016	Mar. 31, 2016
Common Stock, Par or Stated Value Per Share		$ 0.25	$ 0.25
Stock Repurchased and Retired During Period, Value		$ 7,917,009
Securities Purchase Agreement [Member] \| Biglari Group [Member]
Stock Repurchased and Retired During Period, Shares	329,738
Common Stock, Par or Stated Value Per Share	$ 0.25
Treasury Stock Acquired, Average Cost Per Share	$ 24.01
Stock Repurchased and Retired During Period, Value	$ 7,917,009

XML 52 R42.htm IDEA: XBRL DOCUMENT

Note 9 - Financing Arrangements (Details Textual)		30 Months Ended
Note 9 - Financing Arrangements (Details Textual)	Jul. 18, 2016 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Oct. 31, 2016 USD ($)	Oct. 09, 2016 USD ($)	Jun. 30, 2016	Mar. 31, 2016 USD ($)	Apr. 01, 2015 USD ($)
Secured Long-term Debt, Noncurrent								$ 7,000,000
Construction Loan Agreement [Member] \| BB&T [Member]
Line of Credit Facility, Maximum Borrowing Capacity				$ 1,480,000
Long-term Line of Credit			$ 77,000
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity					$ 25,000,000			$ 20,000,000
Line of Credit Facility, Commitment Fee Percentage		0.15%
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			18,300,000				$ 0
Revolving Credit Facility [Member] \| Delphax [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 7,000,000
Long-term Line of Credit			1,200,000				$ 1,800,000
Debt Instrument, Interest Rate, Effective Percentage		10.50%
Revolving Credit Facility [Member] \| Contrail Aviation Support LLC. [Member]
Line of Credit Facility, Maximum Borrowing Capacity			2,200,000
Long-term Line of Credit			$ 0
Revolving Credit Facility [Member] \| BMO Harris Bank N.A. [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 12,000,000
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Eligible Inventory	75.00%
Line of Credit Facility, Maximum Borrowing Capacity, Maximum Value of Eligible Inventory Included in Borrowing Base	$ 9,000,000
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Outstanding Eligible Accounts Receivable	80.00%
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 1,600,000
Minimum Debt Service Coverage Ratio	1.75
Maximum Ratio of Total Liabilities to Tangible Net Worth	2.5
Annual Operating Lease Payments Limitation	$ 10,000
Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Derivative, Basis Spread on Variable Rate		1.50%
Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| BMO Harris Bank N.A. [Member]
Debt Instrument, Basis Spread on Variable Rate	2.80%
Revolving Credit Facility [Member] \| Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 500,000
Revolving Credit Facility [Member] \| Period of July 01, 2016 to September 30, 2016 [Member]
Minimum Asset Coverage Ratio		1.25
Revolving Credit Facility [Member] \| Period of April 01, 2016 to March 31, 2017 [Member]
Minimum Consolidated Tangible Net Worth		$ 18,000,000
Percentage of Consolidated Net Income		50.00%
Revolving Credit Facility [Member] \| Period of April 01, 2016 to June 30, 2016 [Member]
Minimum Asset Coverage Ratio						1.25
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

XML 53 R43.htm IDEA: XBRL DOCUMENT

Note 10 - Variable Interest Entities (Details Textual) - Delphax [Member] - USD ($)	3 Months Ended
	Jun. 30, 2016	Dec. 31, 2016	Mar. 31, 2016
Loan Due from Variable Interest Entity, Accrued Interest		$ 248,000	$ 76,000
Severance Costs	$ 5,610,000
Intangible Assets, Net (Including Goodwill)			$ 1,384,520

XML 54 R44.htm IDEA: XBRL DOCUMENT

Note 10 - Variable Interest Entities - Carrying Values of Assets and Liabilities of Delphax Included on the Company's Consolidated Balance Sheet (Details) - USD ($)

Dec. 31, 2016

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2015

Cash and cash equivalents

$ 1,621,890

$ 5,345,455

^[1]

$ 5,287,316

$ 14,165,120

Accounts receivable, net

15,239,948

12,303,128

Inventories

20,946,720

12,274,104

Other current assets

1,192,275

1,668,004

Total current assets

45,990,430

38,959,534

Property and equipment

5,168,905

4,577,774

Goodwill

4,185,265

275,408

Other assets

402,439

317,528

Total assets

62,028,049

52,154,752

9,054,684

7,003,660

Income tax payable

11,312

Total current liabilities

6,706,927

6,842,874

Short-term debt

1,163,577

1,859,300

16,925,188

15,717,146

Long-term debt

18,358,742

4,835

Other long-term liabilities

2,992,435

615,241

Total liabilities

38,822,365

16,883,222

Delphax [Member] | Reportable Legal Entities [Member]

Cash and cash equivalents

95,357

249,528

Accounts receivable, net

2,000,183

1,433,494

Inventories

2,014,783

4,642,298

Other current assets

491,331

1,034,067

Total current assets

4,601,654

7,359,387

Property and equipment

33,474

625,684

1,109,112

275,408

26,020

4,635,128

9,395,611

2,577,816

1,684,802

Income tax payable

11,312