Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 57

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 57
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 statement / prospectus to international business being adversely affected, negatively impacted or harmed will include an adverse effect on, or a negative impact or harm to, the business, reputation, financial condition, results of operations, revenue and future prospects. References in under this section, “Risks Relating to Atlantic International’s Business” to the “Company,” “we,” “our,” or “us,” generally refer to Atlantic International. References to the “Lyneer Merger” relate to the merger and other transactions contemplated by the Lyneer Merger Agreement consummated on June 4, 2024. Our ability to use our federal net operating loss carryforwards and certain other tax attributes may be limited . As of December 31, 2023, we had federal net operating loss carryforwards of approximately $21,893,488. The available net operating loss carryforwards, if not utilized by us to offset taxable income in subsequent taxable periods, will begin to expire in 2034, except for certain net operating losses that can be carried forward indefinitely. Under the Internal Revenue Code and the Treasury Regulations promulgated thereunder, certain ownership changes could limit a corporation’s ability to utilize its net operating loss carryforwards and other tax attributes to offset its federal taxable income in subsequent taxable periods. An “ownership change” (generally a 50% change in equity ownership over a three -yearperiod) under Section 382 of the Code could limit our ability to utilize our net operating loss carryforwards to offset, post -change, our U.S. federal taxable income. Section 382 of the Code imposes an annual limitation on the amount of post -ownershipchange federal taxable income a corporation may offset with pre -ownershipchange net operating loss carryforwards. We believe the Merger may have caused an ownership change of our company that could limit our ability to utilize our pre -Mergernet operating loss carryforwards, and as a result, increase our federal income tax liability in subsequent taxable periods. Our principal stockholder owns approximately 43% of our outstanding share of majority of our common stock, under a pledge agreement which is in default and its interests may conflict with yours in the future. All of IDC’s shares have been pledged to Lyneer’s lenders under a loan agreement which is in default. IDC has agreed on the terms of a forbearance agreement and is in the process of formalizing the agreement with its lenders. Each share of our common stock initially entitles its holder to one vote on