Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 143

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 143
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 |               |   |     |                        |           4.9 | % |     |   |          18.7 | % |

____________ (1) Acquisition, capital raising, and other non -recurring expenses primarily relate to capital raising expenses, acquisition and integration expenses, and legal expenses incurred in relation to matters outside the ordinary course of business. (2) Other non -cash charges primarily relate to staff option and share compensation expense, expense for shares issued to directors for board services, and consideration paid for consulting services. Operating Leverage.This measure is calculated by dividing the growth in Adjusted EBITDA by the growth in adjusted gross profit, on a trailing 12 -monthbasis. We use this KPI because we believe it provides a measure of our efficiency for converting incremental gross profit into Adjusted EBITDA.

|                                        |     |   | September 28, 
          2024 |   |     |   | September 30, 
          2023 |   |
|:---------------------------------------|:----|:--|--------------:|:--|:----|:--|--------------:|:--|
| Gross Profit – TTM (Current Period)    |     | $ |        23,639 |   |     | $ |        33,526 |   |
| Gross Profit – TTM (Prior Period)      |     |   |        33,526 |   |     |   |        32,793 |   |
| Gross Profit – Growth (Decline)        |     | $ |        (9,887 | ) |     | $ |           733 |   |
| Adjusted EBITDA – TTM (Current Period) |     | $ |         1,153 |   |     | $ |         6,271 |   |
| Adjusted EBITDA – TTM (Prior Period)   |     |   |         6,271 |   |     |   |         2,180 |   |
| Adjusted EBITDA – Growth (Decline)     |     | $ |        (5,118 | ) |     | $ |         4,091 |   |
| Operating Leverage                     |     |   |          51.8 | % |     |   |         558.2 | % |

72

Leverage Ratio.Calculated as total debt, net, gross of any original issue discount, divided by pro forma adjusted EBITDA