Company: ATLN
Filing Date: 2025-06-23
Form Type: S-3
Source: 0001213900-25-056432
Chunk: 22

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-06-23
Form: S-3
Chunk 22
---
, Lyneer’s clients will frequently enter nonexclusive arrangements with several
firms, which the client is generally able to terminate on short notice and without penalty. The nature of these arrangements further exacerbates
the difficulty in predicting Lyneer’s future results.

Lyneer may be unable to find sufficient candidates for its talent solutions business.

Lyneer’s talent solutions
services business consists of the placement of individuals seeking employment. There can be no assurance that candidates for employment
will continue to seek employment through Lyneer. Candidates generally seek contract or permanent positions through multiple sources, including
Lyneer and its competitors. Before the COVID-19 pandemic, unemployment in the U.S. was at historic lows and during the second half of
2021, as the economy recovered, competition for workers in a number of industries became intense. When unemployment levels are low, finding
sufficient eligible candidates to meet employers’ demands is more challenging. Although unemployment has risen in some areas in
which Lyneer operates, talent shortages have persisted in a number of disciplines and jurisdictions. Any shortage of candidates could
materially adversely affect Lyneer’s business or financial condition.

Lyneer’s growth of operations could strain its resources and cause its business to suffer.

While Lyneer plans to continue
growing its business organically through expansion, sales efforts, and strategic acquisitions, while maintaining tight controls on its
expenses and overhead, lean overhead functions combined with focused growth may place a strain on its management systems, infrastructure
and resources, resulting in internal control failures, missed opportunities, and staff attrition that could have a negative impact on
its business and results of operations.

<div align='center'>8</div>

Lyneer is dependent on its management personnel and employees, and a failure to attract and retain such personnel could harm its business.

Lyneer is engaged in the
services business. As such, its success or failure is highly dependent upon the performance of its management personnel and employees,
rather than upon tangible assets (of which Lyneer has few). There can be no assurance that Lyneer will be able to attract and retain the
personnel that are essential to its success.

Lyneer’s results of operations can be negatively impacted by variable costs.

Lyneer’s results of
operations can be negatively impacted by, among other things, changes in unemployment tax rates, changes in workers’ compensation
insurance rates and claims relating to audits, and write-offs of uncollectible customer receivables.

Ly