Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 204

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 204
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 comprehensive income. (b)Changes in goodwill and intangible assets in connection with the Acquisition (c)Does not give effect to any stock compensation awards as bonuses 3.Determination of any deferred tax effects as a result of the Acquisition or other pro forma adjustments. 4. Reflects transaction bonus amounts to be incurred for the executive management team. Note 4. Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations The pro forma basic and diluted loss per share amounts presented in the unaudited pro forma condensed combined statements of operations are based upon the number of new shares of our common stock outstanding, assuming the Acquisition occurred on January 1, 2023. The following pro forma adjustments are based on preliminary estimates, which may change significantly as additional information is obtained and additional analyses are performed. The pro forma transaction adjustments included in the unaudited pro forma combined statement of operations are as follows: 5.Represents elimination of interest expense incurred on various debt obligations that are being extinguished at the closing of the Acquisition. 6.Represents interest expense to be incurred on outstanding debt post -Acquisition. 7.Reflects the elimination of Staffing 360 Solutions discontinued operations. 8.Reflects changes in amortization of intangible assets. 9.Reduction in Selling, General and Administrative costs due to costs incurred for 2024 transactions. 10.An estimated effective tax rate of 26% was used to account for the tax loss/benefit, representing the estimated tax rate of our company following the consummation of the Merger. 11.Reflects the effect of the IRC Section 754 election taken to adjust the partnership basis for the consideration transferred in the transaction. An estimated effective tax rate of 26% was used to account for the tax loss/benefit, representing the estimated tax rate of our company following the consummation of the Merger. An IRC Section 382 analysis has not yet been performed with respect to the potential limitation of tax attributes of the Merger for Atlantic International and its subsidiaries, nominations or any and our company. This will be performed with the closing of the Merger. 121

COMPARISON OF STOCKHOLDERS’ RIGHTS If the Merger is completed, Staffing 360 stockholders will receive Atlantic International common stock. At the effective time of the Merger, the Atlantic International Charter will be the combined company charter. At the effective time of the Merger, the Atlantic International Bylaws will be the combined company’s bylaws