Note 8 - Equity Method Investments

3 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

8. Equity Method Investments

On

January 16, 2018,

the Company purchased approximately

1,133,000

shares of Insignia (NASDAQ: ISIG) at a price of

$1.25

per share for a total cost of approximately

$1.4

million. After this purchase, the Company owned approximately

26%

of Insignia’s total common stock and the Company adopted the equity method of accounting. Insignia Systems, Inc. markets in-store advertising products, programs and services to retailers and consumer packaged goods manufacturers. As a result, as of

January 16, 2018,

the Company adopted the equity method to account for this investment because of its ability to exercise significant influence, but

not

control, over the operating and financial policies of Insignia. Air T has elected a

three

-month lag upon adoption of the equity method. At

June 30, 2018,

the Company held approximately

3.5

million shares of Insignia’s common stock representing approximately

29%

of the outstanding shares for a total net investment basis of approximately

$4,801,000.

For the quarter ended

June 30, 2018,

the Company recorded approximately

$25,000

of its share of Insignia’s net income for the

three

months ended

March 31, 2018

along with a basis difference adjustment of approximately

$20,000.

As discussed previously, the Company’s investment in The Fence Store LLC is accounted for under the equity method of accounting. The Company’s net investment basis is approximately

$437,000

at

June 30, 2018.