Company: ATLN
Filing Date: 2025-07-08
Form Type: 424B3
Source: 0001213900-25-062079
Chunk: 13

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-07-08
Form: 424B3
Chunk 13
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10% of Lyneer’s revenues in either period. The client’s contract
with Lyneer consists of a master service agreement (“MSA”) for temporary employee services with various customer locations
entering into separate service annexes. None of the revenues from a specific location exceeded 5% of the aggregate revenue associated
with the client. The current term of the MSA expires in January 2026 and automatically renews for one-year subsequent terms. However,
the client may terminate the agreement for convenience at any time, subject to any accrued payment obligations. If this client were to
terminate its relationship with Lyneer, Lyneer would face a material decrease in revenues if it is unable to replace the client’s
lost revenues. This, in turn, would be expected to have a material adverse effect on Lyneer’s business and financial condition.

IDC, our principal stockholder, defaulted on the joint and several debt obligations of IDC and our Lyneer subsidiary which could result in a change of control of our company.

Our principal stockholder,
IDC owned approximately 43% of our issued and outstanding common stock. In order to secure the current joint and several debt obligations
of IDC and Lyneer until such time as such indebtedness can be restructured or repaid, we pledged to the lender under the Term Note our
equity ownership of Lyneer and IDC pledged to such lender its equity ownership in our Company. The Lender under the original ABL Revolver
foreclosed on IDC’s equity ownership of our Company. Any sales by the lender of IDC’s common stock of our Company, may have
an adverse effect on the market price of our common stock resulting in a diminution in the value of disputes or other developments related
to proprietary rights, including patents, litigation matters or our ability to obtain intellectual property protection for our technologies;

Lyneer has been in default under its principal credit facilities and outstanding promissory notes and any future defaults by Lyneer under its credit facilities could have a material adverse impact on Lyneer’s financial condition and long-term viability.

Lyneer has entered into several
debt facilities under which it is jointly and severally liable for repayment with IDC. Lyneer was not in compliance with all of its covenants
under its revolving credit facility until it was able to enter into a new credit facility on April 29, 2025.

Even if IDC pays in full
the term loan and the promissory notes payable to