Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 105

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 20252024Temporary placement services$101,826,339 $99,672,902 Permanent placement and other services982,468 950,310 Total service revenues, net$102,808,807 $100,623,212 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 three months ended March 31, 2025 and March 31, 2024, revenues from the Company’s largest customer accounted for approximately 13% and 15% 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 asset consists of unbilled accounts receivable of $9,776,021 and $9,368,565 as of March 31, 2025 and December 31, 2024, respectively. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment upon receipt of invoice.Accounts receivable is as follows: March 31,2025December 31,2024Accounts receivable$48,832,661 $66,800,444 Allowance for doubtful accounts(2,726,107)(2,726,107)Accounts receivable, net$46,106,554 $64,074,337 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 no bad debt expense during the periods ended March 31, 2025 and March 31, 2024, respectively

None of the Company’s customers accounted for more than 10% of the Company’s accounts receivable as of March 31, 2025 and December 31, 2024. 

10

Note 5: Property and EquipmentProperty and equipment consisted of the following: March 31,2025December 31,2024Estimated Useful LifeComputer equipment and software$815,996 $803,917 3 yearsOffice equipment94,876 94,876 5 yearsFurniture and fixtures169,258 169,258 7 yearsLeasehold improvements18,420 18,420