Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 109

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 109
---
 scheduled or required principal payments on the Revolver prior to its maturity date. The Company may prepay amounts owed under the Revolver at any time prior to its maturity date without penalty.As of March 31, 2025, and December 31, 2024, the Company has recognized liability balances on the Revolver of $28,739,104 and $42,508,379, respectively.On August 12, 2024 the Company entered into extended forbearance agreements with its lender, under which the lenders, waived all existing events of default as of the date of the agreements and agreed to forbear from exercising their rights and remedies with respect to such events of default under the Revolver and Term Note through September 30, 2024. The maximum aggregate principal amount of $60,000,000 will be reduced by $500,000 on each Thursday starting August 15, 2024 and continuing through and including September 26, 2024. The Initial Capital Raise milestone and the uplisting milestone dates were subsequently extended to September 30, 2025, or as agreed between the parties.On April 29, 2025, the Company closed on a new ABL lender, replacing the current Revolver, with a maturity date of April 29, 2028. The current lender has funded the shortfall of the IDC portion owed and IDC has entered into a term loan for $6,000,000, plus a $1,000,000 exit fee. The current Revolver’s lender has assumed IDC’s publicly owned stock of Atlantic International Corp as collateral and intends to sell these shares to pay down these amounts. See Note 18: Subsequent Events for further information.The Revolver contains certain customary financial and non-financial covenants.Total available borrowing capacity on the Revolver as of March 31, 2025 was $127,537.Term NoteOn August 31, 2021, the Company and IDC as co-borrowers entered into a Term Note in the amount of $30,300,000. The proceeds of this loan were primarily used to finance the acquisition of Lyneer by IDC in August 2021. The Term Note matures on February 28, 2026, at which time all outstanding balances are due and payable. There are no scheduled principal payments on the Term Note prior to its maturity date. The Term Note is subordinated to the Revolver and bears an initial stated rate of 14% per annum.As of March 31, 202