Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 144

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 144
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Accrued expenses and other current liabilities consist of the following:December 31,2024December 31,2023Potential settlement offer for legacy stockholders$11,101,671 $— Accrued wages and salaries28,784,955 5,372,929 Accrued commissions and bonuses3,515,821 549,313 Accrued interest683,046 3,001,362 Income tax payable13,913 — Earnout due to sellers – current portion— 3,474,954 Accrued other expenses and current liabilities5,925,144 3,645,537 Total accrued expenses and other current liabilities$50,024,550 $16,044,095 Legacy Stockholder Dividend SettlementsThe Company has extended offers for settlement to stockholders as a result of the Company failing to declare and pay a declared dividend as described in the Company’s filings. The Company has issued 764,486 shares in partial satisfaction of this settlement as of the issuance date of the Company’s December 31, 2024 financial statements at the September 10, 2024 closing stock price of $6.45. See Note 21: Subsequent Events for further discussion on these settlements.On October 24, 2024 the Company entered into an Amended and Restated Settlement Agreement and General Release of Claims with regard to the Company’s failing to declare and pay a declared dividend as described in the Company’s filings and the shareholder agreed to provide consulting services to the Company. In full and final satisfaction of any and all obligations related to the dividend and consulting services, the Company agreed to the following:•$25,000 cash payment as an initial payment under the Consulting Agreement•Consulting fees will be paid at the sum of $7,500 per month, paid quarterly•757,833 shares will be issued as additional consideration for up to 10 hours of services a week. Any weekly hours in excess of those hours will be billed at a negotiated rate•230,027 shares will be issued as a Dividend settlementLegal Counsel Exchange AgreementOn December 5, 2024, the Company and its legal counsel entered into an exchange agreement whereby the Company shall issue to legal counsel 20,000 restricted shares of common stock in satisfaction of $101,400 of accounts payable to legal counsel at the closing price of $5.07 per share. These shares were transferred to legal counsel on February 12, 2025.

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