Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 162

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 162
---
ed RSUs with a grant date fair value of $2.36.The following table summarizes the Company’s restricted stock activity consisting of RSUs: Non-vestedSharesOutstanding WeightedAverage GrantDate Fair Valueper ShareOutstanding at December 31, 2023—$— Granted10,065,397$4.49 Vested(9,823,465)$4.54 Unvested at December 31, 2024241,932$2.36 Of the shares granted, 4,771,255 shares are for compensation for transaction costs related to the Merger incurred by a third party on behalf of the Company. An assumption agreement was entered into on June 18, 2024, whereby the Company agreed to assume those obligations and issue equity of Atlantic to satisfy these obligations in full.The vesting date fair value of RSUs that vested in 2024 and 2023 was $4.54 and $0, respectively. The weighted average grant date fair value per share of awards granted in 2024 and 2023 was $4.49 and $0, respectively.Stock-based compensation expense included in the accompanying consolidated statements of operations was:Year Ended December 31, 20242023Stock-based compensation expense$45,202,329 $— As of December 31, 2024, there was $532,902 of unrecognized stock-based compensation related to RSUs outstanding, which is expected to be recognized over a weighted-average remaining service period of less than one year.Stock Issuance

On October 25, 2024, the Company issued 117,925 shares of the Company’s common stock to its employees at a per share price of $4.91 outside of the Incentive Plan as a special incentive for employees.  

70

Note 19: Income Taxes

For the years ended December 31, 2024 and 2023, the Company recorded an income tax expense/(benefit) of $5,379,102 and $(5,928,271), respectively. The Company’s effective tax rate for the years ended December 31, 2024 and 2023 was 4.1% and (28.0)%, respectively. The increase in effective tax rates between the periods was primarily due to the establishment of a valuation allowance on the Company’s deferred tax assets.Lyneer Investments files as a partnership for US federal income tax purposes and is considered a “pass-through” entity. As