Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 136

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 which is expected to be recognized over a weighted-average remaining service period of less than one year.Stock OptionsStock options to purchase the Company’s common stock are granted to employees and directors, upon approval by the Board of Directors, with an exercise price equal to the fair market value of the stock on the date of grant. Options generally become exercisable in four years, in equal installments beginning one year from the date of grant, and generally expire five years from the date of grant. The fair value of the Company’s stock options is estimated on the date of grant using the Black-Scholes option-pricing model. The grant date fair value of the stock options granted during the nine months ended September 30, 2025 was $2.37.The following table summarizes the Company’s stock option activity:Stock OptionsWeighted Average Exercise Price Per ShareAggregate Intrinsic ValueOutstanding at December 31, 2024—$— $— Granted1,000,000$2.67 Outstanding at September 30, 20251,000,000$2.67 $380,000 Exercisable at September 30, 2025—$— $— Vested or expected to vest at September 30, 20251,000,000$2.67 $380,000 As of September 30, 2025, there was $2,171,313 of unrecognized stock-based compensation related to stock options outstanding and the average remaining contractual life on outstanding options was 4.67 years.Stock-based compensation expense included in the accompanying consolidated statements of operations was:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Stock-based compensation expense $6,709,761 $285,483 $19,019,485 $4,791,549 

Stock Issuance

On September 3, 2025, the Company issued 150,000  shares of the Company’s common stock outside of the Incentive Plan, as a settlement for prior services performed at a per share price of $3.40.  

Note 16: Income TaxesFor the three months ended September 30, 2025 and 2024, the Company recorded an income tax (expense)/benefit of $(9,144) and $1,220,072, respectively and $(28,379) and $19,732,646 for the nine months ended September 30, 2025