Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 486

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 486
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 of the Company Common Stock. The discussion below provides the assumptions and inputs used in our analyses. For brevity, we omit the discussion related to each input, if that input is fully described above. Discounted Cash Flow Analysis Below, we provide the inputs used in our Discounted Cash Flow Analysis of the Parent: Income Tax Rate(s) Assumptions Parent is headquartered in the state of New Jersey and, therefore, is subject to the federal corporate tax rate of 21% and the state tax rate of 9%. The effective state -plus -federaltax rate is 28.11%. In the projected financial statement data provided to us by the management of the Company and prepared by the Parent, however, the corporate income tax burden was incorporated in the projections. Discount Rate Inputs The Cost of Debt We estimated the required return on debt at 10%. This estimate is based upon the current interest rate on the Parent’s outstanding promissory notes. The Marginal Tax Rate, t As noted above, we estimated the effective state -plus -federaltax rate at 28.11% The Cost of Equity (CAPM) Risk Free Rate We used the yield on the 10 -yearU.S. Treasury bond as a proxy for the risk -freerate. As of October 25, 2024, the yield on the 10 -yearU.S. Treasury bond was 4.25% Equity Risk Premium Using data available in the Kroll Cost of Capital Calculator, we estimated the equity risk premium at 5.0%. Beta To estimate the Parent’s beta, we used the median Vasicek -Adjustedbeta estimate of 1.13 obtained from the Kroll Cost of Capital Calculator. Risk Premium Over CAPM (Size Premium) Based upon its market capitalization, Parent would fall within decile 9 of the Kroll Cost of Capital Calculator size deciles. This implies an equity size premium of 1.99%. Cost of Equity Estimate (CAPM) Using the risk -freerate, equity risk premium, beta and size premium estimates above, we estimated the required return to equity at 11.89%.

| Value of Atlantic International Corp. Common Stock |

Annex B-18

The Weights of Debt and Equity, W d and W e Using the most current data available to us, the Parent’s 10 -Qfiling as of June 30, 2024, we estimated the market values of debt and equity to obtain their relative weights as a percentage of