Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 478

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 478
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 approaches to value. Asset Based Approach:A general way of determining a value indication of a business’s assets and/or equity using one or more methods based directly on the value of the assets of the business less liabilities. Income Approach:A general way of determining a value indication of a business’s assets and/or equity using one or more methods wherein a value is determined by converting anticipated benefits (i.e., cash flows) into a present value. This approach is commonly referred to as a discounted cash flow analysis. Market Approach:A general way of determining a value indication of a business’s assets and/or equity using one or more methods that compare the subject to similar investments for which pricing data can be observed either because the investment is publicly traded or because the investment has been sold and transaction data are available. The various methods of valuation that analysts use in practice are typically considered as subdivisions of these broad approaches. Valuation methods under the Market and Income approaches generally contain common characteristics such as measures of benefit streams, discount rates and/or capitalization rates and multiples. Discounted Cash Flow Analysis The first valuation method we used to estimate the value of the Company’s Common Stock was an income -basedmethod called the discounted cash flow (DCF) method. The income -basedvaluation method is a fundamental valuation methodology used by valuation analysts. It is premised on the principle that the value of a company can be derived from the present value of its projected cash flows (i.e., projected benefits). In forecasting a company’s future benefits, an analyst uses a variety of assumptions and judgments about a company’s expected financial performance, including, but not limited to, sales growth rates, profit margins, capital expenditures and investments in net working capital. In an income -basedvaluation, an analyst explicitly forecasts the future cash flows over a reasonably foreseeable short term and estimates a long -termbenefit stream beyond the forecast period that is stable and sustainable. This long -termbenefit is referred to as the terminal value and captures the remaining value of the company beyond the projection period (i.e., its “going -concern” value). Alternatively, the terminal value can be viewed as the value realized upon exiting the investment. To arrive at a value estimate using the income approach, an analyst discounts to the present the explicitly forecasted cash flows and the terminal value estimate at a rate that appropriately reflects the riskiness of the company’s cash flows. In our DCF analysis, we relied upon forecasted financial statement data prepared by the Parent and provided to us by the management of the Company. Based on our professional opinion