Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 127

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 127
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 guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company plans to adopt ASU 2025-01 for the annual reporting period December 31, 2026 and interim periods for the quarterly reporting period March 31, 2027.The Company does not believe any other recently issued but not yet effective accounting pronouncements will have a material effect on its consolidated financial statements.

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Note 4: Revenue Recognition and Accounts Receivable

The Company’s disaggregated revenues are as follows:Year Ended December 31,20242023Temporary placement services$438,820,825 $396,739,483 Permanent placement and other services3,788,989 4,635,218 Total service revenues, net$442,609,814 $401,374,701 When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. Because all its revenues are from placement services, there are no differences in the nature, timing and uncertainty of the Company’s revenues and cash flows from its revenue generating activities. For the periods ended December 31, 2024 and December 31, 2023, revenues from the Company’s largest customer accounted for approximately 16% and 16% of consolidated revenues, respectively; no other customers accounted for more than 10% of the Company’s consolidated revenues in either period. Economic factors specific to this customer could impact the nature, timing and uncertainty of the Company’s revenues and cash flows.Contract assets consists of unbilled accounts receivable of $9,368,565 and $5,660,753 as of December 31, 2024 and December 31, 2023, respectively. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment upon receipt of invoice.Accounts receivable is as follows:December 31, 2024December 31, 2023Accounts receivable$66,800,444 $60,720,972 Allowance for doubtful accounts(2,726,107) (1,902,140)Accounts receivable, net$64,074,337 $58,818,832 The Company’s accounts receivable serves as collateral for the Revolver and the Term Note has a second lien after the Revolver.The Company recognized $957,031 and $1,526,985 of bad debt expense