American Software Announces Tax Treatment of 2021 Distributions

Rhea-AI Summary

American Software, Inc. (NASDAQ: AMSWA) has announced that certain distributions for 2021 are deemed return of capital (non-dividend) distributions. This alters shareholders' tax basis in their shares. To assist with tax reporting, Form 8937 is available under the Investor Relations section on their website. Shareholders are advised to consult tax advisors for implications on their 2021 taxes.

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• Change in tax basis may complicate tax reporting for shareholders.

ATLANTA--(BUSINESS WIRE)-- American Software, Inc. (NASDAQ: AMSWA) has determined that certain 2021 distributions are considered to be return of capital (non-dividend) distributions.

This tax treatment will affect shareholders’ tax basis in their shares. To assist investors with tax reporting, Form 8937, Report of Organizational Actions Affecting Basis of Securities has been posted on the Investor section of the Company’s website under “Investor Relations.”

Shareholders should consult their tax advisors to determine how this change may affect their 2021 taxes.

About American Software, Inc.

Atlanta-based American Software, Inc. (NASDAQ: AMSWA), through its operating entities, delivers an innovative technical platform with AI-powered capabilities for supply chain management and advanced retail planning that is accelerating digital supply chain optimization from product concept to customer availability. Logility, Inc. is helping large enterprise companies transform their supply chain operations to gain a competitive advantage. Recognized for its high-touch approach to customer service, rapid implementations and industry-leading return on investment (ROI), Logility customers include Big Lots, Husqvarna Group, Parker Hannifin, Sonoco Products and Red Wing Shoe Company. Demand Management, Inc. delivers affordable, easy-to-use supply chain planning solutions designed to increase forecast accuracy, improve customer service and reduce inventory to maximize profits and lower costs. Demand Management serves customers such as Siemens Healthcare, AutomationDirect.com and Newfoundland Labrador Liquor Corporation. Customers of New Generation Computing, Inc. which are now serviced by Logility and Demand Management, include Brooks Brothers, Carter’s, Destination XL, Foot Locker, Jockey International, Lacoste and Spanx. The comprehensive American Software supply chain and retail planning portfolio delivered in the cloud includes advanced analytics, supply chain visibility, demand, inventory and replenishment planning, Sales and Operations Planning (S&OP), Integrated Business Planning (IBP), supply and inventory optimization, manufacturing planning and scheduling, retail merchandise and assortment planning and allocation, product lifecycle management (PLM), sourcing management, vendor quality and compliance, and product traceability. For more information about American Software, please visit www.amsoftware.com, call (404) 364-7615 or email kliu@amsoftware.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005107/en/

Vince C. Klinges

Chief Financial Officer

American Software, Inc

(404) 264-5477

Source: American Software, Inc.

FAQ

What is the impact of the 2021 distributions for AMSWA shareholders?

The 2021 distributions are classified as return of capital, affecting shareholders' tax basis in their shares.

Where can AMSWA investors find the necessary tax reporting form?

Form 8937 is posted on the Investor Relations section of American Software's website.

Should AMSWA shareholders consult anyone regarding tax implications?

Yes, shareholders are advised to consult their tax advisors regarding the impact on their 2021 taxes.