Certain significant amounts included in the condensed consolidated balance sheets consisted of the following (in thousands):


	December 31,			September 30,
	2024			2024
Expendable parts and supplies, net:
Expendable parts and supplies	$	39,404		$	39,089
Less: expendable parts warranty		(5,574	)		(6,079	)
Less: obsolescence		(4,658	)		(4,738	)
	$	29,172		$	28,272
Property and equipment, net:
Aircraft and other flight equipment	$	319,831		$	591,421
Other equipment		9,788			9,503
Total property and equipment		329,619			600,924
Less: accumulated depreciation		(126,052	)		(174,573	)
	$	203,567		$	426,351
Other assets:
Investments in equity securities	$	300		$	300
Lease incentives		—			812
Contract asset		5,400			6,081
Other		1,129			516
	$	6,829		$	7,709
Other accrued expenses:
Accrued property taxes	$	4,722		$	4,650
Accrued interest		3,207			2,997
Accrued vacation		7,308			7,421
Accrued lodging		3,847			4,433
Accrued maintenance		1,911			2,493
Accrued employee benefits		1,528			1,075
Accrued fleet operating expense		3,118			2,751
Other		9,178			6,488
	$	34,819		$	32,308
Other noncurrent liabilities:
Warrant liabilities	$	25,225		$	25,225
Lease incentive obligations		—			1,050
Long-term employee benefits		537			485
Other		913			1,819
	$	26,675		$	28,579

The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation exist, the assets may be impaired and the carrying amount of the assets exceed their fair value. The assets are then tested for recoverability of carrying amount. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, the undiscounted net cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net book value of the assets exceeds their estimated fair value.

We group assets at the capacity purchase agreement, flight services agreement, and fleet-type level (i.e., the lowest level for which there are identifiable cash flows). If impairment indicators exist with respect to any of the asset groups, we estimate future cash flows based on projections of capacity purchase or flight services agreement, block hours, maintenance events, labor costs and other relevant factors.

During the three months ended December 31, 2024, the Company assessed whether any indicators of impairment existed in any of our long-lived asset groups and noted that impairment indicators existed i.) due to the removal of CRJ-900

aircraft from the United CPA and ii.) due to estimated proceeds on the expected sale of 10 E-175 aircraft being significantly less than the carrying value. The Company concluded that the net book value of our E-175 aircraft was impaired and recorded a $60.7 million impairment adjustment. The Company concluded that no impairment was necessary on its CRJ-900 aircraft.

During the three months ended December 31, 2024, the Company reevaluated the fair value of our held for sale assets and recorded a net impairment true-up adjustment of $3.5 million. The Company additionally reclassified two CRJ-900 airframes to held for sale during the period and recorded an impairment loss of $1.5 million. No other indicators of impairment were present during the quarter and no further steps were determined to be necessary.

The Company’s assumptions about future conditions relevant to the assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will update its analyses accordingly.

Depreciation of property and equipment totaled $8.0 million and $13.3 million for the three months ended December 31, 2024 and December 31, 2023, respectively.