Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 176

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 and administrative costs were 18.6% in the six months ended June 30, 2025 as compared to 14.1% in the six months ended June 30, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense, a full six months of expenses incurred as a result of the Merger compared to a partial month, partially offset by lower transaction costs related to the Merger in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended June 30, 2025 and 2024 was $1,232,750 and $1,249,054, respectively, a decrease of $16,304 or 1.3%, which was slightly lower on a year-over year basis primarily due to more of the Company’s computer software being fully depreciated at the end of 2024.

Depreciation and amortization expense for the six months ended June 30, 2025 and 2024 was $2,469,139 and $2,508,608, respectively, a decrease of $39,469 or 1.6%, which was slightly lower on a year-over year basis primarily due to more of the Company’s computer software being fully depreciated at the end of 2024.

Loss on Debt Extinguishment

Loss on debt extinguishment, for the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Loss on debt extinguishment$— $1,213,379 $— $1,213,379 

Loss on debt extinguishment during the three and six months ended June 30, 2024 relate to the Seventh Amendment and Forbearance Agreement to the Revolver being treated as a debt extinguishment after the Company’s analysis of Accounting Standards Codification (“ASC”) Topic 470 – Debt.

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Advisory Fees Paid in the Merger

Advisory fees paid in merger for the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Advisory fees paid in the merger