Item 8.01 Other Matters
Employee Retention Credit.
In early January 2022, Air T, Inc. ("the Company") intends to file an
application with the Internal Revenue Service for an Employee Retention Credit
in an amount approximating $9,000,000. The Employee Retention Credit, originally
included in the CARES Act in 2020 and subsequently modified by Congress, is a
refundable tax credit against certain employment taxes equal to 50-70% of the
qualified wages an eligible employer pays to its employees. The Company's
application will be made with respect to wages paid between the period January
1, 2001 and September 30, 2021. There is no assurance that the Company will
qualify for this credit or when, or in what amount, the application will be
approved.
Potential Acquisition
The Company is negotiating the purchase, with two principals of the underlying
business, of all of the shares of a Northern European company involved in the
global aviation data and information business. Details of the expected
transaction are not yet complete, but it is anticipated that the purchase price
will be approximately 12.5MM Euros, and the Company's interest in the entity
would approximate 70%.
Final definitive documents with respect to the potential transaction have not
been completed or executed and once executed would be subject to numerous
closing conditions and other terms and conditions customary for transactions of
this kind, including further due diligence review. While the parties project
signing a definitive agreement in early January 2022 and closing in late January
2022, there is no assurance definitive agreements will be finalized and signed
or that a closing will occur.
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