Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 69

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 25,784,955 Accrued commissions and bonuses2,702,798 3,515,821 Accrued interest1,650,048 683,046 Income tax payable13,913 13,913 Accrued other expenses and current liabilities4,029,055 3,834,109 Total accrued expenses and other current liabilities$44,185,971 $44,933,515 Legacy Stockholder Dividend SettlementsThe Company at merger on June 18, 2024, put in escrow 4,704,098 shares at a closing price of $2.36 per share valued at $11,101,671, as a reserve for the potential settlement amounts of legacy SeqLL stockholders and was required to extend a settlement offer within 90 days from June 18, 2024. The Company extended offers for settlement to the legacy stockholders, as a result of the Company failing to declare and pay a declared dividend as described in the Company’s filings, to issue shares of Atlantic International Corp. stock at the September 10, 2024 closing stock price of $6.45. The Company has issued 773,944 shares in partial satisfaction of this settlement as of the issuance date of the Company’s June 30, 2025 condensed consolidated unaudited financial statements with an issuance stock price range of $2.03 - $6.20 per share, with an additional 1,000,701 shares pending issuance. On October 24, 2024 the Company entered into an Amended and Restated Settlement Agreement and General Release of Claims with regard to the Company’s failure to declare and pay a declared dividend as described in the Company’s filings and the Company’s former Chief Executive Officer agreed to provide consulting services to the Company. In full and final satisfaction of any and all obligations related to the dividend and consulting services, the Company agreed to the following:•$25,000 cash payment as an initial payment under the Consulting Agreement•Consulting fees will be paid at the sum of $7,500 per month, paid quarterly•757,833 shares will be issued as additional consideration for up to 10 hours of services a week. Any weekly hours in excess of those hours will be billed at a negotiated rate•230,027 shares will be issued as a Dividend settlementProfessional Employer OrganizationThe majority of the Accrued wages and salaries above relate to the PEO, which the Company is engaged to process payroll for the Company