Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 126

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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, respectively, and $0 for each of the three and nine month periods ended September 30, 2024. $39,163 and $6,522 of deferred financing costs were recognized as a component of “interest expense” on the accompanying unaudited condensed consolidated statements of operations for the three months ended  September 30, 2025 and 2024, respectively and  $130,271 and $545,362 for the nine months ended September 30, 2025 and 2024, respectively.

Note 9: Accrued Expenses and Other Current LiabilitiesAccrued expenses and other current liabilities consist of the following: September 30,2025December 31,2024Potential settlement offer for legacy stockholders$8,723,200 $11,101,671 Accrued wages and salaries2,945,967 2,463,693 Accrued commissions and bonuses2,368,377 3,515,821 Accrued interest782,937 683,046 Income tax payable13,913 13,913 Accrued other expenses and current liabilities4,768,247 3,834,109 Total accrued expenses and other current liabilities$19,602,641 $21,612,253 Legacy Stockholder Dividend SettlementsThe Company upon the Merger on June 18, 2024, put in escrow 4,704,098 shares at a closing price of $2.36 per share valued at $11,101,671, as a reserve for the potential settlement amounts of legacy SeqLL stockholders and was required to extend a settlement offer within 90 days from June 18, 2024. The Company extended offers for settlement to the legacy stockholders, as a result of the Company failing to declare and pay a declared dividend as described in the Company’s filings, to issue shares of Atlantic International Corp. stock at the September 10, 2024 closing stock price of $6.45. The Company has issued 773,944 shares in partial satisfaction of this settlement as of the issuance date of the Company’s September 30, 2025 condensed consolidated unaudited financial statements with an issuance stock price range of $2.03 - $6.20 per share, with an estimated 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