Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 137

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 137
---
 and 2024, respectively. The Company’s effective tax rate for the nine months ended September 30, 2025 and 2024 was (0.1)% 

22

and 22.8%, respectively. The effective tax rate for the nine months ended September 30, 2025 differs from the statutory rate primarily as a result of having a full valuation allowance maintained against our deferred tax assets. The change in effective tax rates between the periods was primarily due to the establishment of a valuation allowance on the Company’s deferred tax assets, initially recorded during the fourth quarter of 2024.As of September 30, 2025, the Company maintained a valuation allowance against all of its deferred tax assets for which realization cannot be considered more likely than not at this time. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and past financial performance.

Note 17: Earnings per ShareThe following table summarizes the computation of basic and diluted net loss per share:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Numerator:Net loss$(10,820,344)$(7,049,629)$(32,282,698)$(66,828,192)Denominator:Weighted average common shares outstanding, basic and diluted55,119,78144,688,84554,553,94532,774,837Net loss per share, basic and diluted$(0.20)$(0.16)$(0.59)$(2.04)Excluded anti-dilutive shares7,080,0511,077,0915,529,9021,077,091

Note 18: Subsequent EventsThe Company has evaluated subsequent events through November 12, 2025, as detailed below.During October 2025, the Company entered into agreements to sell future receivables which allows for the factoring of $5,055,000 of receivables. The Company received cash proceeds of $4,000,000 less $80,000 in origination fees. On October 31, 2025, the Company’s Bylaws were amended by the Board to allow for a quorum of shareholders to be one-third of the shareholders eligible to vote. On November 7, 2025, the stockholders approved