Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 144

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 incurred as a result of the Merger compared to a  three and a half months, partially offset by lower transaction costs related to the Merger. As a percentage of service revenue, net, selling, general and administrative costs were 18.4% in the nine months ended September 30, 2025 as compared to 14.7% in the nine months ended September 30, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense, a full nine months of expenses incurred as a result of the Merger compared to three and a half months, partially offset by lower transaction costs related to the Merger in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended September 30, 2025 and 2024 was $1,230,307 and $1,245,557, respectively, a decrease of $15,250 or 1.2%, which was slightly lower on a year-over year basis primarily due to more of the Company’s computer software being fully depreciated at the end of 2024.

Depreciation and amortization expense for the nine months ended September 30, 2025 and 2024 was $3,699,446 and $3,754,165, respectively, a decrease of $54,719 or 1.5%, which was slightly lower on a year-over year basis primarily due to more of the Company’s computer software being fully depreciated at the end of 2024.

Loss on Debt Extinguishment

Loss on debt extinguishment, for the three and nine months ended September 30, 2025 and 2024 were as follows:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Loss on debt extinguishment$— $— $— $1,213,379 

Loss on debt extinguishment during the nine months ended September 30, 2024 relates to the Seventh Amendment and Forbearance Agreement to the previous Revolver being treated as a debt extinguishment after the Company’s analysis of Accounting Standards Codification (“ASC”) Topic 470 – Debt. See Note 8: Debt for further information. 

27

Advisory Fees Paid in the Merger

Advisory fees incurred in connection