Company: ATLN
Filing Date: 2025-06-23
Form Type: S-3
Source: 0001213900-25-056432
Chunk: 21

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-06-23
Form: S-3
Chunk 21
---
 of personal information or other privacy related matters, or any failure to comply with changing regulatory requirements in
this area, could result in legal liability or impairment to Lyneer’s reputation in the marketplace. Following consummation of the
Merger, our board of directors and its audit committee will consult with Lyneer’s management and will be briefed by, and receive
appropriate recommendations from, management on matters associated with regulatory compliance and security.

<div align='center'>7</div>

Lyneer has been and may be exposed to employment-related claims and losses, including class action lawsuits that could have a material adverse effect on its business.

Lyneer employs people internally
and in the workplaces of other businesses. Many of these individuals have access to customer information systems and confidential information.
The risks of these activities include possible claims relating to:

| ● | discrimination and harassment; |

| ● | wrongful termination or denial of employment; |

| ● | violations of employment rights related to employment screening or privacy issues; |

| ● | classification of temporary workers; |

| ● | assignment of illegal aliens; |

| ● | violations of wage and hour requirements; |

| ● | retroactive entitlement to temporary worker benefits |

| ● | errors and omissions by Lyneer’s temporary workers; |

| ● | misuse of customer proprietary information; |

| ● | misappropriation of funds; |

| ● | damage to customer facilities due to negligence of temporary workers; and |

| ● | criminal activity. |

Lyneer may incur fines and
other losses or negative publicity with respect to these problems. In addition, these claims may give rise to litigation, which could
be time-consuming and expensive. New employment and labor laws and regulations may be proposed or adopted that may increase the potential
exposure of employers to employment-related claims and litigation. There can be no assurance that the corporate policies Lyneer has in
place to help reduce its exposure to these risks will be effective or that Lyneer will not experience losses as a result of these risks.
There can also be no assurance that the insurance policies Lyneer has purchased to insure against certain risks will be adequate or that
insurance coverage will remain available on reasonable terms or be sufficient in amount or scope of coverage.

Long-term contracts do not comprise a significant portion of Lyneer’s revenue.

Because long-term contracts
are not a significant part of Lyneer’s staffing services business, future results cannot be reliably predicted by considering past
trends or extrapolating past results. Additionally