Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 156

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 156
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 as one of the premier workforce solutions partners in the United States.

At Atlantic, management understands that finding the perfect candidate starts before the job requisition even comes in. The Company employs the strategy of proactive recruitment to build a pipeline of pre-vetted candidates for order fulfillment. Atlantic’s client mix consists of both small- and medium-size businesses, and large national and multinational client relationships. Client relationships with small- and medium-size businesses are based on a local or regional relationship, and tend to rely less on longer-term contracts, and the competitors for this business are primarily locally owned businesses. Comprising over 60% of the Company’s revenue base, the large national and multinational clients, on the other hand, will frequently enter into non-exclusive arrangements with several firms, with the ultimate choice among them being left to local managers. As a result, employment services firms with a large network of offices compete most effectively for this business, which generally has agreed-upon pricing or mark-up on services performed.

Results of Operations

The following discussion summarizes the key factors Atlantic’s management team believes are necessary for an understanding of Atlantic’s financial statements.

Comparison of the Three Months Ended March 31, 2025 and 2024:

Certain related party and non-related party financial statement line-item amounts have been aggregated for purposes of analysis below, which is consistent with management’s evaluation of its business results.

The following table summarizes our results of operations for the periods presented:

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Table of Contents    

 Three Months EndedMarch 31,Change  20252024Amount Percent Service revenue, net$102,808,807 $100,623,212 $2,185,595 2.2 %Cost of revenue91,622,685 90,157,830 1,464,855 1.6 %Gross profit11,186,122 10,465,382 720,740 6.9 %Selling, general and administrative19,399,479 10,341,037 9,058,442 87.6 %Depreciation and amortization1,236,389 1,259,554 (23,165)(1.8)%Loss from operations(9,449,746)(1,135,209)(8,314,537)+Interest expense1,284,822 5,022,230 (3,737,408)(74.4)%Net loss before provision for income taxes(10,734,568)(6,157