Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 480

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 480
---
 which averaged 17.7 % debt and 82.3% equity. We used this weighting under the assumption that over time, the Company will adjust its capital structure to industry levels. The Cost of Debt The cost of debt, r d, reflects the risk debt investors bear by holding the Company’s debt. We considered the average interest rate on the Company’s outstanding debt owed to Jackson Investment Group and Headway. We estimate the cost of debt at 14%. The Marginal Tax Rate, t We assumed an effective tax rate of 26.73%, as noted above. The Cost of Equity, r e The cost of equity reflects the required return for investors to hold a company’s stock. In our analysis, we relied upon the widely -usedCapital Asset Pricing Model (CAPM) to estimate the Company’s cost of equity. The CAPM holds that the required return to equity holders can be expressed with the following equation: Cost of Equity = Risk-Free Rate + Beta*(Eq. Risk Premium) Risk Free Rate The risk -freerate refers to the theoretical rate of return an investment with zero risk. A commonly -usedproxy for risk -freereturns are the United States Treasury bonds. In our analysis, we used the spot 10 -YearUnited States Treasury Yield as of October 25, 2024. That estimate was 4.25%.

| Value of Staffing 360 Solutions, Inc. Common Stock |

Annex B-8

Equity Risk Premium The equity risk premium (ERP) is the spread between the return on an estimate of the market portfolio and a risk -freerate. It is intended to capture the additional return investors require to hold risky equity securities as opposed to risk -freedebt. The ERP changes over time, as investors’ tolerance for risk changes. As of October 25, 2024, Kroll reported a historical long -termequity risk premium of 5.0%. Beta Beta is a risk measure in the sense that it measures the tendency of a stock to move up and down with the market. Mathematically, it is the slope coefficient derived by regressing a stock’s returns on the market’s returns. To test the fit of the regression, an analyst can calculate the R -Squaredof the beta. The R -Squaredin this context represents the proportion of the variance in the stock’s returns that can be explained by the variance in the market’s returns. It provides a measure of how well the regression model fits the data. An R