Equity Method Investments

3 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

The Company’s investment in Insignia Systems, Inc. (“Insignia”) is accounted for under the equity method of accounting. The Company has elected a three-month lag upon adoption of the equity method. At June 30, 2019, the Company held approximately 3.5 million shares of Insignia’s common stock representing approximately 30% of the outstanding shares. For the quarter ended June 30, 2019, the Company recorded approximately $322,000 as its share of Insignia’s net loss for the three months ended March 31, 2019 along with a basis difference adjustment of approximately $24,000. In addition, due to the adverse financial results as reported in Insignia's Form 10Q for the quarter ended March 31, 2019, the Company determined that it has suffered from an other-than-temporary impairment in its investment in Insignia . As such, the Company recorded an impairment charge of $814,558 during the quarter ended June 30, 2019. After the impairment, the Company's net investment basis in Insignia is $4,001,106 as of June 30, 2019.

Summarized unaudited financial information for Insignia for the three months ended March 31, 2019 and March 31, 2018 is as follows:



	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Revenue	$	5,140,000		$	7,419,000
Gross Profit	774,000			2,746,000
Operating income (loss)	(1,337,000		)	232,000
Net income (loss)	(1,096,000		)	164,000
Net income (loss) attributable to Air T, Inc. stockholders	$	(322,000	)	$	5,000