Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 292

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 292
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ARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FISCAL YEARS ENDED DECEMBER 30, 2023 AND DECEMBER 31, 2022
(All amounts in thousands)

NOTE 7 —GOODWILL

|                                 |     |   | December 30, 
         2023 |     |   | December 31, 
         2022 |   |
|:--------------------------------|:----|:--|-------------:|:----|:--|-------------:|:--|
| Beginning balance, gross        |     | $ |       19,891 |     | $ |       31,478 |   |
| Acquisition                     |     |   |            — |     |   |        7,808 |   |
| Accumulated disposition         |     |   |            — |     |   |       (1,577 | ) |
| Accumulated impairment losses   |     |   |            — |     |   |      (16,073 | ) |
| Currency translation adjustment |     |   |            — |     |   |       (1,745 | ) |
| Ending balance, net             |     | $ |       19,891 |     | $ |       19,891 |   |

|                            |     |   | December 30, 
         2023 |     |   | December 31, 
         2022 |
|:---------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Professional Staffing – US |     | $ |       14,031 |     | $ |       14,031 |
| Commercial Staffing – US   |     |   |        5,860 |     |   |        5,860 |
| Ending balance, net        |     | $ |       19,891 |     | $ |       19,891 |

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. ASC 350, requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. During the fourth quarter of 2021 the Company identified a triggering event in response the COVID-19 pandemic. In accordance with ASC 350 the Company tested its