11.	Financing Arrangements

Material financing arrangements for the Company and its subsidiaries are summarized as follows. AirCo, Contrail Aviation (“Contrail”) and Worthington are subsidiaries of the Company in the commercial jet engines and parts segment.

	6/30/2018			3/31/2018			Maturity Date

Revolver	$	5,603,713		$	-		November 30, 2019
Term Note A		9,500,000			9,750,000		January 1, 2028
Term Note B		4,750,000			4,875,000		January 1, 2028
Term Note D		1,657,600			1,674,400		January 1, 2028
Air T Debt		21,511,313			16,299,400

Revolver		4,686,000			5,000,000		February 21, 2019
Term Loan		1,705,775			2,404,775		March 26, 2019
AirCo Debt		6,391,775			7,404,775

Revolver		-			14,826,062		May 5, 2019
Term Loan		9,920,000			9,920,000		January 26, 2021
Contrail Debt		9,920,000			24,746,062

Term Loan		3,400,000			-		November 30, 2019
Worthington Debt		3,400,000			-

Total Debt		41,223,088			48,450,238

Less: Unamortized Debt Issuance Costs		(356,258	)		(365,288	)

Total Debt, net	$	40,866,830		$	48,084,950

Refer to the Company’s Form

10K

for the year ended

March 31, 2018

for a detailed explanation of existing debts. For the quarter ended

June 30, 2018,

the Company has entered the following debt obligations:

May 25, 2018,

the Company’s wholly-owned subsidiaries Worthington Acquisition, LLC, Worthington Aviation, LLC and Worthington MRO, LLC, as Borrowers, completed a loan transaction with Minnesota Bank & Trust (“MBT”) pursuant to which Borrowers obtained from MBT a new revolving loan in the amount of up to

$1,500,000

(the “Worthington Revolving Loan”) and new term loan in the amount of

$3,400,000

(the “Worthington Term Loan” and together with the Worthington Revolving Loan, the “Worthington Loans”). The entire loan proceeds were disbursed by MBT to the Borrowers on

May 25, 2018

and were used to reduce amounts previously advanced on the Company’s line of credit financing with MBT. Until the Worthington Term Loan is paid in full and certain other conditions met, the Company guaranteed up to

$3,000,000

of the Worthington Loans. The interest rate on Worthington Term Loan floats at a rate equal to the

one

-month LIBOR rate plus

2.5%

and the interest rate on the Worthington Revolving Loan floats at a rate equal to the

one

-month LIBOR rate plus

2.0%.

The Worthington Loans mature on

November 30, 2019,

at which time the entire unpaid balance of the Worthington Loans will be due and payable in full. In addition, the loan agreement contains affirmative and negative covenants and the loans are secured by a

first

lien on all of the assets of the Borrowers and a pledge of certain assets held by Stratus Aero Partners, LLC, a subsidiary of the Company. At

June 30, 2018,

borrowings have been made on the Worthington Revolving Loan and the outstanding balance on the Worthington Term Loan is

$3,400,000.

The Company assumes various financial obligations and commitments in the normal course of its operations and financing activities. Financial obligations are considered to represent known future cash payments that the Company is required to make under existing contractual arrangements such as debt and lease agreements.