Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 80

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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000,000$2.67 $380,000 As of September 30, 2025, there was $2,171,313 of unrecognized stock-based compensation related to stock options outstanding and the average remaining contractual life on outstanding options was 4.67 years.Stock-based compensation expense included in the accompanying consolidated statements of operations was:Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Stock-based compensation expense $6,709,761 $285,483 $19,019,485 $4,791,549 

Stock Issuance

On September 3, 2025, the Company issued 150,000  shares of the Company’s common stock outside of the Incentive Plan, as a settlement for prior services performed at a per share price of $3.40.  

Note 16: Income TaxesFor the three months ended September 30, 2025 and 2024, the Company recorded an income tax (expense)/benefit of $(9,144) and $1,220,072, respectively and $(28,379) and $19,732,646 for the nine months ended September 30, 2025 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