Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 352

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 352
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STAFFING 360 SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share, per share and stated value per share)
(UNAUDITED) NOTE 6 — GOODWILL (cont.)

|                            |     |   | September 28, 
          2024 |     |   | December 30, 
         2023 |
|:---------------------------|:----|:--|--------------:|:----|:--|-------------:|
| Professional Staffing – US |     | $ |        14,031 |     | $ |       14,031 |
| Commercial Staffing – US   |     |   |         5,860 |     |   |        5,860 |
| Ending balance, net        |     | $ |        19,891 |     | $ |       19,891 |

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. ASC 350, requires that goodwill be tested for impairment at the operating segment level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. ASC 280-10-50-11 states that operating segments often exhibit similar long-term financial performance if they have similar economic characteristics. During the quarter ended September 28, 2024, management concluded the Company has two operating segments for goodwill impairment analysis under ASC 350 such as commercial and professional. Accordingly, goodwill will no longer be tested at the unit level for the five reporting units and will be tested for impairment at the operating segment level.

NOTE 7 —DEBT

|                                                       |     |   | September 28, 
          2024 |   |     |   | December 30, 
         2023 |   |
|:------------------------------------------------------|:----|:--|--------------:|:--|:----|:--|-------------:|:--|
| Jackson Investment Group – related party              |     | $ |        10,116 |   |     | $ |       10,116 |   |
| Redeemable Series H Preferred Stock                   |     |   |         9,700 |   |     |   |        9,000 |   |
| Total Debt, Gross                                     |