AIR T INC

The Company leases 53,000 square feet of an aircraft maintenance facility located in Kinston, North Carolina under an agreement that extends through January 2028, with the option to extend the lease for three additional five-year periods thereafter. The rental rate under the lease increases by increments for each of the five-year renewal periods.

The Company leases 21,000 square feet of hangar space at Rafael Hernández Airport in Puerto Rico. The lease expires on August 31, 2029.

GGS leases a 113,000 square foot production facility in Olathe, Kansas. The lease expires on August 31, 2029.

Contrail leases a 21,000 square foot facility in Verona, Wisconsin from a related party. See Note 14 “Related Party Matters” of Notes to Consolidated Financial Statements included under Part II, Item 8 of this report. The lease expires on July 17, 2026. On May 7, 2026, Contrail entered into an agreement to extend the current lease for an additional three years through June 30, 2029, with the option to extend the lease for two additional one-year periods thereafter.

CAM leases 4,000 square feet of office space located in Glendale, Colorado. The lease expires in August 2027.

Jet Yard leases 49 acres of land from Pinal County at the Pinal Air Park in Marana, Arizona. The lease expires in May 2046, though Jet Yard has an option to renew the lease for an additional 30-year period (though approximately 3 acres of the leased premises may be terminated by Pinal County upon 90 days’ notice). 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. On May 27, 2020, Pinal County and Jet Yard entered into the first amendment to the lease agreement in which Pinal County agreed to the terms of Jet Yard's ground hardening civil improvement project ("ground

hardening improvements") on areas under lease to improve its aircraft parking facilities. Starting in fiscal 2021, Jet Yard subleased the aforementioned lease along with the ground hardening improvements to Jet Yard Solutions.

DSI leases 12,000 square feet of space in a building located in Mississauga, Canada. The lease expires on July 31, 2028.

Worthington and AirCo lease 42,000 square feet of a facility in Eagan, Minnesota. The lease for this facility expires in April 2027. Worthington has a lease in Tulsa, Oklahoma, which is approximately 23,000 square feet and expires in January 2027.

WASI subleases 54,000 square feet of land and facilities located at Branson National Airport, Springfield, Missouri. The lease expires on January 30, 2028 with an option to renew for two additional and consecutive five year terms plus an additional and consecutive term ending on May 5, 2039.

Rex leases office space totaling 3,000 square meters in Mascot, New South Wales, Australia. The lease expires on June 30, 2026 with an option to renew for one additional two year term. In February 2026, Rex entered into a new lease for office space totaling 1,000 square meters in Mascot, New South Wales, Australia, commencing on June 1, 2026. The lease has a term of seven years, with an option to renew for one additional five-year term. Rex owns freehold land, buildings and training facilities at Wagga Wagga, New South Wales, which serve as the campus of AAPA’s Wagga Wagga academy and Rex’s heavy maintenance base, and owns freehold training facilities in Ballarat, Victoria, used by AAPA’s Ballarat campus. Rex also leases hangar, terminal, office and other operational space at airports across its network, including at Sydney and Adelaide airports, at prevailing market terms.

As of March 31, 2026, the Company leased hangar, maintenance and office space from third parties at a variety of other locations, at prevailing market terms.

• Legal liability may harm our business.
• Our business might suffer if we were to lose the services of certain key employees.
• A pandemic, epidemic or outbreak of a contagious disease in the markets in which we operate or that otherwise impacts our markets could adversely impact our business.
• Changes to U.S. tariff and import/export regulations may have a negative effect on our suppliers and/or service providers and, in turn, could have a material adverse impact on our financial condition.
• Our holding company structure may increase risks related to our operations.
• A small number of stockholders has the ability to control the Company.
• Although we do not expect to rely on the “controlled company” exemption, we do qualify as a “controlled company” within the meaning of the Nasdaq listing standards, and we do qualify for exemptions from certain corporate governance requirements.
• An increase in interest rates or in our borrowing margin would increase the cost of servicing our debt and could reduce our cash flow and negatively affect the results of our business operations.
• Our inability to maintain sufficient liquidity could limit our operational flexibility and also impact our ability to make payments on our obligations as they come due.
• Future cash flows from operations or through financings may not be sufficient to enable the Company to meet its obligations.
• A large proportion of our capital is invested in physical assets and securities that can be hard to sell, especially if market conditions are poor.
• To service our debt and meet our other cash needs, we will require a significant amount of cash, which may not be available.
• If our cash flows and capital resources are insufficient to fund our debt service obligations or meet covenant requirements, we may be forced to seek alternatives.
• Despite our substantial indebtedness, we may incur significantly more debt, and cash may not be available to meet our financial obligations when due or enable us to capitalize on investment opportunities when they arise.
• Our current financing arrangements require compliance with financial and other covenants and a failure to comply with such covenants could adversely affect our ability to operate.
• Future acquisitions and dispositions of businesses and investments are possible, changing the components of our assets and liabilities, and if unsuccessful or unfavorable, could reduce the value of the Company and its securities.
• We face numerous risks and uncertainties as we expand our business.
• Our business strategy includes acquisitions, and acquisitions entail numerous risks, including the risk of management diversion and increased costs and expenses, all of which could negatively affect the Company’s ability to operate profitably.
• Strategic ventures may increase risks applicable to our operations.
• Rapid business expansions or new business initiatives may increase risk.
• Our policies and procedures may not be effective in ensuring compliance with applicable law.
• Compliance with the regulatory requirements imposed on us as a public company results in significant costs that may have an adverse effect on our results.
• Deficiencies in our public company financial reporting and disclosures could adversely impact our reputation.
• The operating results of our segments may fluctuate, particularly our commercial aircraft, engines and parts segment.
• Our overnight air cargo segment is dependent on a significant customer.
• Our dry-lease agreements with FedEx subject us to operating risks.
• Because of our dependence on FedEx, we are subject to the risks that may affect FedEx’s operations.
• A material reduction in the aircraft we fly for FedEx could materially adversely affect our business and results of operations.
• Sales of deicing equipment can be affected by weather conditions.
• We are affected by the risks faced by commercial aircraft operators and MRO companies because they are our customers.
• Our engine values and lease rates, which are dependent on the status of the types of aircraft on which engines are installed, and other factors, could decline.
• Upon termination of a lease, we may be unable to enter into new leases or sell the airframe, engine or its parts on acceptable terms.
• Failures by lessees to meet their maintenance and recordkeeping obligations under our leases could adversely affect the value of our leased engines and aircraft which could affect our ability to re-lease the engines and aircraft in a timely manner following termination of the leases.
• We may experience losses and delays in connection with repossession of engines or aircraft when a lessee defaults.
• Our commercial aircraft, engines and parts segment and its customers operate in a highly regulated industry and changes in laws or regulations may adversely affect our ability to lease or sell our engines or aircraft.
• Our aircraft, engines and parts could cause damage resulting in liability claims.
• We have risks in managing our portfolio of aircraft and engines to meet customer needs.
• Liens on our engines or aircraft could exceed the value of such assets, which could negatively affect our ability to repossess, lease or sell a particular engine or aircraft.
• In certain countries, an engine affixed to an aircraft may become an addition to the aircraft and we may not be able to exercise our ownership rights over the engine.
• Higher or volatile fuel prices could affect the profitability of the aviation industry and our lessees’ ability to meet their lease payment obligations to us.
• Interruptions in the capital markets could impair our lessees’ ability to finance their operations, which could prevent the lessees from complying with payment obligations to us.
• Our lessees may fail to adequately insure our aircraft or engines which could subject us to additional costs.
• If our lessees fail to cooperate in returning our aircraft or engines following lease terminations, we may encounter obstacles and are likely to incur significant costs and expenses conducting repossessions.
• If our lessees fail to discharge aircraft liens for which they are responsible, we may be obligated to pay to discharge the liens.
• If our lessees encounter financial difficulties and we restructure or terminate our leases, we are likely to obtain less favorable lease terms.
• Withdrawal, suspension or revocation of governmental authorizations or approvals could negatively affect our business.
• Risks Related to Environmental, Social, and Governance Issues
• Climate change, related legislative and regulatory responses to climate change, and the transition to a lower carbon economy may adversely affect our business.
• We are subject to risks from natural disasters such as earthquakes and severe weather (the frequency and severity of which may be impacted by climate change), which may include more frequent or severe storms, extreme temperatures and ambient temperature increases, hurricanes, flooding, rising sea levels, shortages of water, droughts and wildfires, any of which could have a material adverse effect on our business, results of operations, and financial condition.
• Environmentally hazardous conditions could potentially adversely affect us.
• We are subject to increasing scrutiny from investors and others regarding our environmental, social, governance, or sustainability responsibilities, which could result in additional costs or risks and adversely impact our reputation, employee retention, and ability to raise capital from investors.
• The ranking of the Company’s obligations under the Junior Subordinated Debentures and the guarantee creates a risk that Air T Funding may not be able to pay amounts due to holders of the Trust Preferred Securities.
• The Company's option to extend the interest payment period could delay interest payments on the Trust Preferred Securities.
• Tax event redemption or investment company act redemption
• The Company may cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.
• There are limitations on direct actions against the Company and on rights under the guarantee.
• The covenants in the Indenture are limited.
• Holders of the Trust Preferred Securities will generally have limited voting rights.
• We may not be able to successfully integrate Rex into our operations, including our financial reporting processes, which could adversely affect our business, results of operations, and financial condition.
• Rex operates in a highly regulated industry, and failure to comply with applicable laws and regulations could materially adversely affect our business.
• Rex’s ability to return its Saab 340 fleet to service depends on the availability of engine overhaul capacity, parts, and skilled labor, and failure to achieve fleet reactivation milestones could result in non-compliance with the Rex Regional Commitments and adverse consequences under the Commonwealth Facilities.
• Rex derives an important portion of its revenues and network position from state government regulated route contracts and protected airport slots that are subject to periodic re-tender, renewal, or expiration, and the loss of these arrangements could adversely affect Rex’s business.
• The Rex Acquisition involves risks related to voluntary administration proceedings in Australia and the DOCA structure, including uncertainties regarding liabilities, claims, obligations, and potential adverse impacts on customer and counterparty acceptance of Rex’s business following the proceedings.
• Risks Related to Accounting and the Bargain Purchase Gain
• The recognition of a bargain purchase gain could increase scrutiny by investors and regulators, and could lead to disputes regarding valuations and assumptions.
• Risks Related to Foreign Operations, Currency, and Financing Exposure
• A significant portion of Rex’s revenues, expenses, assets, and liabilities may be denominated in Australian dollars, and fluctuations in exchange rates could adversely affect our reported results.
• We incurred and assumed significant obligations in connection with the Rex Acquisition, including obligations related to CFA Debt, and we may require additional liquidity to support Rex’s operations.