Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 68

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 68
---
’s analysis according to ASC 470 and as such, the Company is deferring the $300,000 amendment fee and will amortize as an adjustment to interest expense over the remaining term using the effective interest method.On April 29, 2025, the Company and IDC entered into an Amended and Restated Convertible Promissory Note  which further extended the maturity date to the earlier of March 31, 2027 or the completion of at least a $40 million capital raise. Subsequent to the executed amendments of the Company’s debt obligations described herein, the future minimum principal payments on the Company’s outstanding debt are as follows: June 30, 2025Remainder of 2025$1,375,000 20261,950,000 202735,000,000 202837,385,643 2029— Thereafter— Total$75,710,643 Interest ExpenseThe Company recognized total interest expense of $2,023,960 and $4,000,024 during the three months ended June 30, 2025 and 2024, respectively and $3,308,782 and $9,022,254 during the six months ended June 30, 2025, and 2024. The Company also incurred interest expense related to an agreement with a professional employer organization (“PEO”) who processes the payroll for the Company, related to the unpaid balance, at 1.5% per calendar month. Interest expense related to the PEO was $838,327 for each of the  three and six month periods ended June 30, 2025, and $0 for each of the three and six month periods ended June 30, 2024. $42,195 and $233,591 of deferred financing costs were recognized as a component of “interest expense” on the accompanying unaudited condensed consolidated statements of operations for the three months ended  June 30, 2025 and 2024, respectively and  $91,108 and $538,840 for the six months ended June 30, 2025 and 2024, respectively.

15

Note 9: Accrued Expenses and Other Current LiabilitiesAccrued expenses and other current liabilities consist of the following: June 30,2025December 31,2024Potential settlement offer for legacy stockholders$8,723,200 $11,101,671 Accrued wages and salaries27,066,957