Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 164

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 164
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165)21.0 %$(4,447,861.00)21.0 %Change in valuation allowance39,869,545 (30.6)%— — %State income taxes, net of federal benefit(9,791,363)7.5 %(1,193,651)5.6 %Permanent differences3,006,784 (2.3)%670,483 (3.1)%Federal and state refunds— — %(708,073)3.3 %Other(384,699)0.3 %(249,169)1.2 %Effective tax rate$5,379,102 (4.1)%$(5,928,271)28.0 %Deferred tax assets and liabilities reflect the net tax effects of net operating loss and tax credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows:December 31, 2024December 31, 2023Deferred tax assets:Federal net operating loss carryforwards$20,983,881 $— State net operating loss carryforwards8,434,775 — Compensation1,035,288 — Allowance for doubtful accounts802,744 525,675 Interest expense limitation9,499,927 5,993,430 Other61,539 77,042 Accrued expenses539,784 241,815 Lease liability626,289 — Property and equipment164,064 112,294 Total deferred tax assets42,148,291 6,950,256 Valuation allowance(40,178,754)— Net total deferred tax assets$1,969,537 $6,950,256 Deferred tax liabilities:Right of use asset$(608,927)$— Intangible assets(1,360,610)(1,707,646)Total deferred tax liabilities$(1,969,537)$(1,707,646)Net deferred tax assets$— $5,242,610 As of December 31, 2024, the Company had federal net operating loss carryforwards of approximately $99,923,243 and state net operating loss carryforwards of approximately $130,767,950, which are available to reduce future taxable income. The net operating loss