CAT US, a subsidiary of Mainland Aviation Technology Holdings, has entered into a settlement agreement with the U.S. Department of Justice.

Continental Aerospace Technologies, Inc., an indirect wholly-owned subsidiary of Continental Aviation Technologies Holdings, announced that it entered into a settlement agreement with the U.S. Department of Justice on July 31, 2026, regarding the Payroll Protection Program loan that CAT US obtained and subsequently received a waiver for under the U.S. Coronavirus Aid, Relief, and Economic Security Act. This settlement is to be kept confidential. On August 3, 2026, the Department of Justice informed CAT US that it did not oppose the company's disclosure of the settlement. Following the confirmation of the Department of Justices non-opposition, CAT US promptly notified the company to proceed with the disclosure. The settlement agreement requires a payment of $11,772,680, plus interest calculated at an annual rate of 4% from June 23, 2026, until the payment date. The agreement also contains provisions that release CAT US from any future civil liability or claims arising under the False Claims Act concerning the PPP loan. Neither the settlement amount nor CAT US's participation in the settlement negotiations constitutes or should be interpreted as an admission of liability or misconduct by CAT US. The company anticipates that CAT US will make the settlement payment as soon as possible in accordance with the Department of Justice's instructions.