Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 99

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 99
---
 interest expense related to an agreement with a professional employer organization (“PEO”) who processes the payroll for the Company, related to the unpaid balance at 1.5% per calendar month.

For the three and nine months ended September 30, 2025 total interest expense was $2,094,177 and $5,402,959, respectively. For the three and nine months ended September 30, 2024 total interest expense was $1,472,564 and $10,494,818 respectively. Interest expense related to the PEO was $863,402 and $1,701,729 for the three and nine month periods ended September 30, 2025, respectively, and $0 for each of the three and nine month periods ended September 30, 2024. Total cash paid for interest for the three and nine months ended September 30, 2025 totaled $1,202,388 and $3,509,168, respectively, and $1,386,833 and $5,437,928 for the three and nine months ended September 30, 2024, respectively, with the remaining portion of the interest expense as non-cash due to the paid-in-kind interest and change in values of the accrued interest liability and amortization of deferred financing costs.

Assessment of Liquidity Position

The Company has assessed its liquidity position as of September 30, 2025 and December 31, 2024. As of September 30, 2025 and December 31, 2024, the total committed resources available were as follows:

September 30,2025December 31,2024Cash and Cash Equivalents$83,406 $678,676 Committed Liquidity Resources Available:Short-term Revolving Credit Facility342,712 (1,299,463)Total Committed Resources Available$426,118 $(620,787)

The Company closed on a new ABL lender credit facility on April 29, 2025, replacing its obligations under the previous Revolver, with an increased borrowing capacity of up to $70 million. The Company believes the borrowing capacity under this new credit facility and its cash flow from operations will provide sufficient liquidity and capital resources to conduct its planned operations for at least one year.

Refer To Note 3: Summary of Significant Accounting Policies, Liquidity.

34

Related Party Transactions

Transactions with Lyneer Management Holdings LLC (“LMH”)

LMH was 90% owned by Lyne