Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 106

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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Lesser of lease term or asset lifeTotal$1,098,550 $1,086,471 Less: accumulated depreciation and amortization(816,907)(778,851)Property and equipment, net$281,643 $307,620 Total depreciation expense of $38,056 and $61,220 was recorded during the three months ended March 31, 2025 and 2024, respectively and is included in “depreciation and amortization” in the accompanying consolidated condensed statements of operations.

Note 6: Intangible AssetsIntangible assets consisted of the following:March 31, 2025December 31, 2024Gross Carrying AmountAccumulated Amortization Net Carrying AmountGross Carrying AmountAccumulated Amortization Net Carrying AmountCustomer Relationships$35,000,000 $(8,367,777)$26,632,223 $35,000,000 $(7,784,444)$27,215,556 Trade Name12,400,000 (8,835,000)3,565,000 12,400,000 (8,220,000)4,180,000 Total intangible assets$47,400,000 $(17,202,777)$30,197,223 $47,400,000 $(16,004,444)$31,395,556 Total amortization expense of $1,198,333 was recorded during each of the three months ended March 31, 2025 and 2024. The Company continuously monitors for events and circumstances that could indicate that it is more likely than not that its finite lived intangible assets and other long-lived assets are impaired or not recoverable (a triggering event), requiring an interim impairment test. During the three months ended March 31, 2025, the Company considered a 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 March 31, 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