Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 61

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 number of factors including, but not limited to, current macroeconomic conditions such as inflation, economic growth, and interest rate movements, industry and market considerations, and overall financial performance of the Company. Based on the analysis of relevant events and circumstances, the Company concluded a triggering event had not occurred as of June 30, 2025.

Note 7: LeasesWe determine whether an arrangement is a lease at inception and whether such leases are operating or financing leases. For each lease agreement, the Company determines its lease term as the non-cancellable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. We use these options in determining our capitalized financing and right-of-use assets and lease liabilities.Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. To determine the discount rate to use in determining the present value of the lease payments, we use the rate implicit in the lease if determinable, otherwise we use our incremental borrowing rate.The Company maintains operating leases for corporate and field offices. The Company’s leases have initial terms ranging from one month to three years, some of which include the option to renew, and some of which include an early termination option. During the six months ended June 30, 2025, the Company extended certain of its leases for periods ranging from one to three years.

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The following table summarizes the weighted average remaining lease term and discount rate for operating leases as of June 30, 2025 and December 31, 2024:June 30,2025December 31,2024Weighted average remaining lease term for operating leases2.30 years2.07 yearsWeighted average discount rate for operating leases6.75%6.29%The following table summarizes the future minimum payments for operating leases as of June 30, 2025, due in each year ending December 31:YearMinimum Lease Payments Remainder of 2025$710,022 20261,057,434 2027561,937 2028165,370 202964,830 Thereafter47,067 Total lease payments2,606,660 Less: imputed interest(90,802)Present value of operating lease liabilities$2,515,858 

Note 8: DebtSome of the Company’s debt obligations consist of joint and several liabilities with the IDC Technologies Inc. (“IDC”) which are accounted for under ASC 405 – Debt (“ASC 405”).