Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 125

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 125
---
 share in our Initial Capital Raise, provided, however, that the number of shares of our common stock issuable upon conversion of the Merger Note will not exceed 19.99% of the number of our outstanding shares of common stock without shareholder approval if our common stock is then listed on a National Stock Exchange. An event of default under the Merger Note may result in an additional event of default under the Revolver and our other indebtedness for borrowed funds.On September 12, 2024 the Company entered into Amendment No 1 to the Convertible Promissory Note (“Amendment 1 to the Merger Note”) which extended the maturity date to the earlier of March 31, 2026 or the completion of at least a $40 million capital raise. Amendment 1 to the Merger Note was treated as a modification after the Company’s analysis according to ASC 470 and as such, the Company is deferring the $300,000 amendment fee and will amortize as an adjustment to interest expense over the remaining term using the effective interest method.On April 29, 2025, the Company and IDC entered into an Amended and Restated Convertible Promissory Note  which further extended the maturity date to the earlier of March 31, 2027 or the completion of at least a $40 million capital raise. Subsequent to the executed amendments of the Company’s debt obligations described herein, the future minimum principal payments on the Company’s outstanding debt are as follows: September 30, 2025Remainder of 2025$1,375,000 20261,950,000 202735,000,000 202838,363,904 2029— Thereafter— Total$76,688,904 Interest ExpenseThe Company recognized total interest expense of $2,094,177 and $1,472,564 during the three months ended September 30, 2025 and 2024, respectively and $5,402,959 and $10,494,818 during the nine months ended September 30, 

16

2025, and 2024. The Company incurred interest expense related to an agreement with a professional employer organization (“PEO”) which processes the payroll for the Company, related to the unpaid balance, at 1.5% per calendar month. Interest expense related to the PEO was $863,402 and $1,701,729 for the  three and nine month periods ended September 30, 2025