Company: ATLN
Filing Date: 2025-06-23
Form Type: S-3
Source: 0001213900-25-056432
Chunk: 19

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-06-23
Form: S-3
Chunk 19
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,235,113, or 10.3%, during the year ended December 31, 2024, as compared to the prior fiscal year. This increase was was
predominately due to the higher revenues from Lyneer’s temporary placement services business due primarily to a strong sales initiative
by the Company. Permanent placement and other services decreased by $846,229, or 18.3%, due to lower permanent job demand as companies
cut back on hiring permanent positions.

Most of Lyneer’s contracts
do not obligate its customers to utilize a significant amount of Lyneer’s staffing services and may be cancelled on limited notice,
so Lyneer’s revenue is not guaranteed. Substantially all of Lyneer’s revenue is derived from multi-year contracts that are
terminable for convenience. Under Lyneer’s multi-year agreements, Lyneer contracts to provide customers with staffing services through
work or service orders at the customers’ request. Under these agreements, Lyneer’s customers often have little or no obligation
to request Lyneer’s staffing services. In addition, most of Lyneer’s contracts are cancellable on limited notice, even if
Lyneer is not in default under the contract. Lyneer may hire employees permanently to meet anticipated demand for services under these
agreements that may ultimately be delayed or cancelled. Lyneer could face a significant decline in revenues and its business, financial
condition or results of operations could be materially adversely affected if:

| ● | Lyneer sees a significant decline in the staffing services requested under its service agreements; or |

| ● | Lyneer’s customers cancel or defer a significant number of staffing requests; or Lyneer’s        
 existing customer agreements expire or lapse and it cannot replace them with similar agreements. |

Lyneer has client concentration and the loss of a significant client could adversely affect Lyneer’s business operations and operating results.

Lyneer has one client that
represented approximately 16% of Lyneer’s 2024 and 2023 revenues, respectively. No other customer accounted for more than 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