Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 78

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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,830 Gross profit$11,186,122 $10,465,382 

23

Cost of revenue for the three months ended March 31, 2025 and 2024 was $91,622,685 and $90,157,830, respectively, an increase of $1,464,855 or 1.6%. The increase in cost of revenue was due primarily to higher service revenue, net driven primarily by higher temporary placement services revenue, which increased $2,153,437 or 2.2%. Gross profit for the three months ended March 31, 2025 and 2024 was $11,186,122 and $10,465,382, respectively, an increase of $720,740 or 6.9%. As a percentage of service revenue, net, gross profit was 10.9% and 10.4% for the three months ended March 31, 2025 and 2024, respectively, which increased due to the Company’s initiative to sell higher margin accounts.

Total Operating Expenses

Total operating expenses for the three months ended March 31, 2025 and 2024 consisted of the following:

 Three Months EndedMarch 31, 20252024Selling, general and administrative$19,399,479 $10,341,037 Depreciation and amortization1,236,389 1,259,554 Total operating expenses$20,635,868 $11,600,591 

The changes in each financial statement line item for the respective periods are described below.

Selling, General and Administrative Costs

Selling, general and administrative expenses for the three months ended March 31, 2025 and 2024 were $19,399,479 and $10,341,037, respectively, an increase of $9,058,442, or 87.6%, due primarily to stock compensation expense and higher transaction costs related to the Merger. As a percentage of service revenue, net, selling, general and administrative costs were 18.9% in the three months ended March 31, 2025 as compared to 10.3% in the three months ended March 31, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense and higher transaction costs related to the Merger  in the three months ended March 31, 2025 compared to the three