Note 9 - Equity Method Investments

9 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

9. Equity Method Investments

The Company’s investment in Insignia Systems, Inc. (“Insignia”) is accounted for under the equity method of accounting. The Company has elected a

three

-month lag upon adoption of the equity method. At

December 31, 2018,

the Company held approximately

3.5

million shares of Insignia’s common stock representing approximately

30%

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

$5,065,000.

For the quarter ended

December 31, 2018,

the Company recorded approximately

$190,000

as its share of Insignia’s net income for the

three

months ended

September 30, 2018

along with a basis difference adjustment of approximately

$24,000.

 Summarized unaudited financial information for the

nine

months ended September

30,

2018

and September

30,

2017

are as follows:

	Nine Months Ended		Nine Months Ended
	September 30, 2018		September 30, 2017
Revenue	$	25,119,000	$	18,339,000
Gross Profit		9,314,000		4,870,000
Operating income (loss)		1,331,000		(1,861,000	)
Net income (loss)		993,000		(1,274,000	)
Net income attributable to Air T, Inc. stockholders	$	202,664	$	-

The Company’s investment in The Fence Store LLC (“TFS”) is also accounted for under the equity method of accounting. The Company’s net investment basis is approximately

$601,000

at

December 31, 2018.

For the quarter ended

December 31, 2018,

the Company recorded approximately

$35,000

as its share of TFS’s net income. Summarized unaudited financial information for the

nine

months ended December

31,

2018

and December

31,

2017

are as follows:

	Nine Months Ended		Nine Months Ended
	December 31, 2018		12/31/2017*
Revenue	$	7,893,896	$	6,498,938
Gross Profit		2,831,958		2,455,015
Operating income		768,724		778,628
Net income		690,449		493,883
Net income attributable to Air T, Inc. stockholders	$	168,006	$	119,363

* Amounts represent results since The Fence Store's inception in

May, 2017