Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 499

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 499
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 estimated the effective state -plus-federaltax rate at 28.11% The Cost of Equity (CAPM) Risk Free Rate We used the yield on the 10 -yearU.S. Treasury bond as a proxy for the risk -freerate. As of October 25, 2024, the yield on the 10 -yearU.S. Treasury bond was 4.25% Equity Risk Premium Using data available in the Kroll Cost of Capital Calculator, we estimated the equity risk premium at 5.0%. Beta To estimate the Parent’s beta, we used the median Vasicek -Adjustedbeta estimate of 1.13 obtained from the Kroll Cost of Capital Calculator. Risk Premium Over CAPM (Size Premium) Based upon its market capitalization, Parent would fall within decile 9 of the Kroll Cost of Capital Calculator size deciles. This implies an equity size premium of 1.99%. Cost of Equity Estimate (CAPM) Using the risk -freerate, equity risk premium, beta and size premium estimates above, we estimated the required return to equity at 11.89%.

| Value of Atlantic International Corp. Common Stock |

Annex B-18

The Weights of Debt and Equity, W d and W e Using the most current data available to us, the Parent’s 10 -Qfiling as of June 30, 2024, we estimated the market values of debt and equity to obtain their relative weights as a percentage of total capitalization. Using the data available to us, we estimated the weights of debt and equity at 25.4% and 74.6%, respectively. The tables below show the calculations.

| Capitalization (as of June 30, 2024)     |          | % of Total |
|:-----------------------------------------|---------:|:-----------|
| ($ in thousands, except per share value) |          |            |
| Debt:                                    |          |            |
| Revolver                                 |   40,163 |            |
| Merger Note – related party              |   35,000 |            |
| Credit Agreement                         |    1,950 |            |
| Promissory Note                          |    1,375 |            |
| Leases                                   |    2,769 |            |
| Total Debt                               |  $81,257 | 25.4%      |
| Equity:                                  |          |            |
| Number of Shares Outstanding             |   48,729