Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 280

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 280
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 corroborated by market data                                        |
| Level 3: |     | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. |

There were no Level 1or 2 assets or liabilities or Level 3 assets in any period. The Company’s Level 3 liabilities were its warrants issued to Jackson and contingent consideration in connection with acquisitions. The table below represents a rollforward of the Level 3 contingent consideration:

|                                |     | Contingent    
 Consideration |       |
|:-------------------------------|:----|:--------------|------:|
| Balance at January 1, 2022     |     | $             | 4,054 |
| Headway deferred consideration |     |               | 4,290 |
| Balance at December 31, 2022   |     | $             | 8,344 |
| Headway Earnout                |     |               |   710 |
| Balance at December 30, 2023   |     | $             | 9,054 |

Cash is considered to be highly liquid and easily tradable and therefore classified as Level 1 within our fair value hierarchy. ASC 825 -10-25, “Fair Value Option” expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is computed on the straight -linemethod over the estimated useful lives for each category as follows:

| Computers              |     | 3 – 5 years |
| Computer equipment     |     | 3 – 5 years |
| Network equipment      |     | 3 – 5 years |
| Software               |     | 3 – 5 years |
| Office equipment       |     | 3 – 7 years |
| Furniture and fixtures |     | 3 – 7 years |
| Leasehold improvements |     | 3 – 5 years |

Amortization of leasehold improvements is computed using the straight -linemethod over the shorter of the life of the lease or the estimated useful life of the assets. Maintenance and repairs are charged to expense as incurred. Major improvements are capitalized. At the time of retirement or disposition of property and equipment, the cost and accumulated depreciation are