Form 4: AIR T Director Cabillot Reports Stock & Option Holdings

AIR T Inc. Director Raymond E. Cabillot filed a Form 4 detailing his direct and indirect common stock holdings, along with the acquisition of new stock options.

Summary

• Raymond E. Cabillot, a Director of AIR T Inc. (AIRT), filed a Form 4 disclosing his beneficial ownership.
• He directly holds 7,500 shares of AIR T Inc. common stock.
• Indirectly, he holds 55,793 shares through FS Special Opportunities I, LP, 394,090 shares through Farnam Street Partners, L.P., and 13,146 shares through Car of MN LLC.
• On August 11, 2025, he acquired 500 stock options with an exercise price of $30 and 500 stock options with an exercise price of $50.
• These newly acquired options become exercisable on August 6, 2026, and have an expiration date of August 6, 2045.
• The filing clarifies that the cumulative amount of options does not include presently unexercisable options granted in December 2020, with a total of 1,500 such options currently outstanding.
• The vesting of these unexercisable options is contingent upon the company's common stock trading at or above specific exercise prices for various price tranches, with annual testing dates on June 30.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of insider holdings and option grants, which is neutral in sentiment. It provides transparency but does not inherently indicate strong positive or negative news.

Positives

• Director Cabillot holds a significant number of shares, both directly and indirectly, indicating alignment with shareholder interests.
• The acquisition of new stock options suggests continued incentive alignment between the director and the company's future performance.

Risks

• The vesting of a significant portion of stock options (1,500 options granted in December 2020) is contingent on the company's common stock reaching specific price tranches.
• Failure to meet these stock price targets within 60 days preceding the annual June 30 testing dates will result in the immediate expiration of the associated options.

Future Outlook

The vesting of a significant portion of the Director's stock options is tied to future stock price performance, specifically reaching certain price tranches by annual June 30 testing dates. This indicates a forward-looking incentive structure for management, aligning their compensation with shareholder value creation.

Industry Context

This filing is a routine insider transaction report and does not provide broader industry context or trends.

Related Party Transactions

• Indirect beneficial ownership through FS Special Opportunities I, LP, Farnam Street Partners, L.P., and Car of MN LLC, which may represent entities where the reporting person has a controlling or significant interest.

Stakeholder Impact

• Shareholders: Provides transparency on the director's equity holdings and incentive alignment through stock options. The performance-based vesting of options aligns director interests with shareholder value creation.

Next Steps

• Monitoring the company's common stock price performance relative to the exercise prices for the unexercisable options, particularly around the annual June 30 testing dates.
• Referencing the Company's proxy statement filed July 3, 2025, for further details on the vesting conditions of the December 2020 options.

Key Dates

Keywords

AIR T INC, AIRT, Form 4, Insider Trading, Stock Options, Beneficial Ownership, Director Holdings, Equity Compensation, SEC Filing