Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 87

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 87
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 gross profit for the years ended December 31, 2024 and 2023 consisted of the following:

Year Ended December 31,20242023Service revenue, net$442,609,814 $401,374,701 Cost of revenue395,431,491 354,496,441 Gross profit$47,178,323 $46,878,260 

Cost of revenue for the years ended December 31, 2024 and 2023 was $395,431,491 and $354,496,441, respectively, an increase of $40,935,050 or 11.5%. The increase in cost of revenue was due primarily to higher service revenue, net driven primarily by higher temporary placement services revenue, net which increased $42,081,342 or 10.6%.

Gross profit for the years ended December 31, 2024 and 2023 was $47,178,323 and $46,878,260, respectively, an increase of $300,063 or 0.6%. As a percentage of service revenue, net, gross profit was 10.7% and 11.7% for the years ended December 31, 2024 and 2023, respectively, which decreased due to increasing labor costs and reduced permanent placements.

Total Operating Expenses

Total operating expenses for the years ended December 31, 2024 and 2023 consisted of the following:

Year Ended December 31,20242023Selling, general and administrative$64,021,052 $45,441,659 Change in fair value of contingent consideration liabilities— (150,093)Depreciation and amortization4,991,863 5,038,218 Total operating expenses$69,012,915 $50,329,784 

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 years ended December 31, 2024 and 2023 were $64,021,052 and $45,441,659, respectively, an increase of $18,579,393, or 40.9%, due primarily to higher transaction costs related to the Merger, stock compensation expense and bad debt expense of $957,031 and $1,526,985 during the years ended December 31, 2024 and 2023, respectively, partially offset by cost cutting