Item 1.01 Entry into a Material Definitive Agreement

On September 30, 2022, Air T, Inc. ("Company") executed a Promissory Note in favor of its twenty percent (20%) owned subsidiary Cadillac Castings, a Michigan corporation ("Holder"). The note is in the original principal amount of two million dollars ($2,000,000), bears interest at the rate of ten percent (10%) simple interest per annum and matures December 30, 2022. The note may be prepaid at any time without penalty. The note is subordinate and junior to any and all indebtedness of the Company to Minnesota Bank & Trust. The funds will be used for general corporate purposes. The foregoing summary of the terms of the note is qualified in its entirety by reference to the Promissory Note filed as Exhibit 10.1 filed herewith, which is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

© Edgar Online, source Glimpses