Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 85

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 85
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 partners in the United States.

At Atlantic, management understands that finding the perfect candidate starts before the job requisition even comes in. The Company employs the strategy of proactive recruitment to build a pipeline of pre-vetted candidates for order fulfillment. Atlantic’s client mix consists of both small- and medium-size businesses, and large national and multinational client relationships. Client relationships with small- and medium-size businesses are based on a local or regional relationship, and tend to rely less on longer-term contracts, and the competitors for this business are primarily locally owned businesses. Comprising over 60% of the Company’s revenue base, the large national and multinational clients, on the other hand, will frequently enter into non-exclusive arrangements with several firms, with the ultimate choice among them being left to local managers. As a result, employment services firms with a large network of offices compete most effectively for this business, which generally has agreed-upon pricing or mark-up on services performed.

Results of Operations

The following discussion summarizes the key factors Atlantic’s management team believes are necessary for an understanding of Atlantic’s financial statements.

Comparison of the Years Ended December 31, 2024 and 2023:

Certain related party and non-related party financial statement line-item amounts have been aggregated for purposes of analysis below, which is consistent with management’s evaluation of its business results.

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Table of Contents

The following table summarizes our results of operations for the periods presented:

Year Ended December 31,Change 20242023Amount Percent Service revenue, net$442,609,814 $401,374,701 $41,235,113 10.3 %Cost of revenue395,431,491 354,496,441 40,935,050 11.5 %Gross profit47,178,323 46,878,260 300,063 0.6 %Selling, general and administrative64,021,052 45,441,659 18,579,393 40.9 %Change in fair value of contingent consideration liabilities— (150,093)150,093 (100.0)%Depreciation and amortization4,991,863 5,038,218 (46,355)(0.9)%(Loss) income from operations(21,834,592)(3,451,524)(18,383,068)+Loss on debt extinguishment1,213,379 189,951 1,023,428 +Advisory fees paid