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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