AIR T INC

7. Intangible Assets and Goodwill

Intangible assets as of June 30, 2026 and March 31, 2026 consisted of the following (in thousands):

Intangible assets obtained through the acquisition of Arena consisted of customer relationships for existing contracts and institutional investors and are included as part of customer relationships. Refer to Note 2 for additional information on the acquisition of Arena and related intangible assets.

As discussed in Note 9, the Company received a distribution of the rights to servicing agreements from CAM during the three months ended June 30, 2026. The fair value on distribution of the servicing agreements was $15.5 million and is included within customer relationships. The asset was deemed to have a useful life offive years. For purposes of determining the fair value of the identifiable intangible asset, the Company utilized a DCF approach, consistent with market practice and applicable accounting standards to estimate the fair value based on the absence of observable market inputs. The DCF values forecasted associated cash flows related to the servicing agreements that made up the asset management function at CAM. The fair value of the servicing agreements would have been materially different if there was a significant change to the cash flows associated with the servicing agreements and/or the discount rate applied to the cash flows for the servicing agreements of 14.5%.

The increase in customer relationships from March 31, 2026 to June 30, 2026 was primarily driven by the Arena acquisition and distribution from CAM. In addition, changes in foreign currency translation rates can result in changes to intangible asset balances displayed above.

Based on the intangible assets recorded at June 30, 2026 and assuming no subsequent additions to, or impairment of the underlying assets, and no changes in foreign currency exchange rates. the remaining estimated annual amortization expense is as follows (in thousands):

Amortization expense totaled $0.9 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively.

Goodwill for relevant segments and corporate and other, at original cost, consists of the following (in thousands):

The increase in the carrying amount of goodwill from March 31, 2026 to June 30, 2026 is primarily attributable to the Arena acquisition (as described in Note 2), as well as adjustments due to changes in foreign exchange rates. Subsequent to the acquisition of Arena, there was a purchase accounting adjustment for $0.3 million that reduced goodwill, There wasno impairment of goodwill during the three months ended June 30, 2026.