Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 203

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 203
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4, have been derived from and should be read in conjunction with: •Management’s discussion and analysis included in the most recent filing; •the unaudited financial statements of the Company as of September30, 2024 and the related notes; •the unaudited financial statements of S360 as of September28, 2024; •the audited financial statements of the Company as of December31, 2023; •the audited financial statements of S360 as of December30, 2023 The unaudited pro forma condensed combined financial statements and accompanying notes as of December 31, 2023, have been derived from and should be read in conjunction with: •the audited financial statements of the Company as of December31, 2023 •the audited financial statements of S360 as of December30, 2023 Note 2. Accounting Policies Upon consummation of the Acquisition, management will perform a comprehensive review of the combined entities’ accounting policies. As a result of the review, management may identify differences between the accounting policies of the entities that, when conformed, could have a material impact on the financial statements of the Company following the Acquisition. Based on its initial analysis, management did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information. As a result, the unaudited pro forma condensed combined financial information does not assume any differences in accounting policies. 120 Note 3. Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet The following pro forma adjustments are based on preliminary estimates, which may change significantly as additional information is obtained and additional analyses are performed: 1.Reflects transactions not associated with the Acquisition: (a)Reflects the conversion of S360 loan into a new series of preferred stock. $5million of the earnout liability previously recorded will be converted into Series H preferred stock. S360 has reflected an extinguishment for both debt instruments and the conversion of all currently outstanding Series H preferred shares for pro forma purposes using the price per share of S360 stock at September30, 2024 to calculate a value to the preferred shares exchanged resulting from an induced conversion of the debt in order to complete the Acquisition. 2.Reflects the pro forma transaction adjustments included in the unaudited pro forma condensed combined financial information related to the Acquisition and recapitalization: (a)Adjustment to eliminate our accumulated deficit, additional paid in capital, common stock, preferred stock, and accumulated other