Company: ATLN
Filing Date: 2025-06-23
Form Type: S-3
Source: 0001213900-25-056432
Chunk: 16

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-06-23
Form: S-3
Chunk 16
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 Lyneer and Lyneer is removed from all joint and several obligation,
there can be no assurance that all conditions subsequent will be satisfied and that Lyneer will be able to comply with all of its obligations
under such credit facilities. Any failure on the part of Lyneer to comply with its obligations under the credit facilities could result
in a default which would be expected to have a material adverse impact on Lyneer’s financial condition and its long-term viability.

Lyneer operates in an intensely competitive and rapidly changing business environment, and there is a substantial risk that its services could become obsolete or uncompetitive.

The markets for Lyneer’s
services are highly competitive. Lyneer’s markets are characterized by pressures to provide high levels of service, incorporate
new capabilities and technologies, accelerate job completion schedules and reduce prices. Furthermore, Lyneer faces competition from a
number of sources, including other executive search firms and professional search, staffing and consulting firms. Several of Lyneer competitors
have greater financial and marketing resources than Lyneer does. New and current competitors are aided by technology, and the market has
low barriers to entry and similarly such technologies have allowed employers to find workers without the help of traditional agencies.
Specifically, the increased use of the internet may attract technology-oriented companies to the professional staffing industry. Free
social networking sites such as LinkedIn and Facebook are also becoming a common way for recruiters and employees to connect without the
assistance of a staffing company.

Lyneer’s future success
depends largely upon its ability to anticipate and keep pace with those developments and advances. Current or future competitors could
develop alternative capabilities and technologies that are more effective, easier to use or more economical than Lyneer’s services.
In addition, Lyneer believes that, with continuing development and increased availability of information technology, the industries in
which Lyneer competes may attract new competitors. If Lyneer’s capabilities and technologies become obsolete or uncompetitive, its
related sales and revenue would decrease. Due to competition, Lyneer may experience reduced margins on its services, loss of market share,
and loss of customers. If Lyneer is not able to compete effectively with current or future competitors as a result of these and other
factors, Lyneer’s business, financial condition and results of operations could be materially adversely affected.

Lyneer’s debt instruments contain covenants that could limit its financing options and liquidity position, which would limit its ability to grow its business.