Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 329

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 329
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 |         (228 | ) |     | $ |         (178 | ) |

F-43

STAFFING 360 SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FISCAL YEARS ENDED DECEMBER 30, 2023 AND DECEMBER 31, 2022
(All amounts in thousands) NOTE 18 — INCOME TAXES (cont.)

During Fiscal 2023 and Fiscal 2022, the Company has federal net operating losses (“NOLs”) of $ and $. Of the $ in federal NOL carryforwards, $ will begin to expire in 2029 and $ can be carried forward indefinitely, subject to an 80% taxable income limitation in the year of utilization and $ that will expire due to the previous Section 382 limitations and Uncertain Tax Position taken in 2016. As of November 15, 2018, the Company had a change in ownership under Section 382. As such, the Company reduced the Federal NOLs available by $. In 2021, the Company had two additional changes in ownership on February 12, 2021 and November 1, 2021, the Company had a change in ownership under Section 382 which limits the amount of useable NOLs going forward. As per the Section 382 analysis, the Company’s Federal NOL available as of January 1, 2022, will not be subject to limitation. On May 17, 2022, the Company acquired % of Headway Workforce Solutions Inc. and Subsidiaries via a stock sale. Headway Workforce Solutions Inc. and Subsidiaries’ NOLs will be subject to a Section 382 limitation due to an ownership change. The Company has not identified subsequent 382 Limitations as of December 31, 2022. As of December 30, 2023 and December 31, 2022, the Company has state operating losses of $ and $ that begin to expire in 2028, and foreign NOLs totaling $ and $ with an indefinite life. As of December 30, 2023 and December 31, 2022, the Company also has capital loss carryforward of $ and $, respectively, which, if unused, will begin to expire in 2023 and a general business credit carryforward of $ and $, respectively.

Effective for the year ended December 28, 201