Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 114

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 114
---
 March 31, 2025 and 2024, respectively.

15

Note 9: Accrued Expenses and Other Current LiabilitiesAccrued expenses and other current liabilities consist of the following: March 31,2025December 31,2024Potential settlement offer for legacy stockholders$8,742,400 $11,101,671 Accrued wages and salaries32,710,947 28,784,955 Accrued commissions and bonuses2,435,457 3,515,821 Accrued interest473,944 683,046 Income tax payable13,913 13,913 Accrued other expenses and current liabilities3,551,713 3,834,109 Total accrued expenses and other current liabilities$47,928,374 $47,933,515 Legacy Stockholder Dividend SettlementsThe Company has extended offers for settlement to stockholders as a result of the Company failing to declare and pay a declared dividend as described in the Company’s filings. The Company has issued 764,486 shares in partial satisfaction of this settlement as of the issuance date of the Company’s March 31, 2025 condensed consolidated unaudited financial statements at the September 10, 2024 closing stock price of $6.45, with an additional 1,000,701 shares pending issuance. On October 24, 2024 the Company entered into an Amended and Restated Settlement Agreement and General Release of Claims with regard to the Company’s failure to declare and pay a declared dividend as described in the Company’s filings and the Company’s former Chief Executive Officer agreed to provide consulting services to the Company. In full and final satisfaction of any and all obligations related to the dividend and consulting services, the Company agreed to the following:•$25,000 cash payment as an initial payment under the Consulting Agreement•Consulting fees will be paid at the sum of $7,500 per month, paid quarterly•757,833 shares will be issued as additional consideration for up to 10 hours of services a week. Any weekly hours in excess of those hours will be billed at a negotiated rate•230,027 shares will be issued as a Dividend settlementLegal Counsel Exchange AgreementOn December 5, 2024, the Company and its legal counsel entered into an exchange agreement whereby the Company shall issue to legal counsel 20,000 restricted shares of common stock in satisfaction of $101,400 of accounts payable to legal counsel at