Company: ATLN
Filing Date: 2025-07-08
Form Type: 424B3
Source: 0001213900-25-062079
Chunk: 16

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-07-08
Form: 424B3
Chunk 16
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, as well as attorneys’
fees. While all of Lyneer’s existing material litigation are subject to pending settlement approvals by the applicable courts, there
can be no assurance that such settlements will be approved by the courts. As a result, it is not possible to predict the outcome of these
lawsuits. Notwithstanding the proposed settlements, these lawsuits, and future lawsuits that may be brought against Lyneer or its subsidiaries,
may consume substantial amounts of Lyneer’s financial and managerial resources and might result in adverse publicity, regardless
of the ultimate outcome of the lawsuits. An unfavorable outcome with respect to these lawsuits and any future lawsuits or regulatory proceedings
could, individually or in the aggregate, cause Lyneer to incur substantial liabilities or impact its operations in such a way that may
have a material adverse effect upon Lyneer’s business, financial condition or results of operations. In addition, an unfavorable
outcome in one or more of these cases could cause Lyneer to change its compensation plans for its employees, which could have a material
adverse effect upon Lyneer’s business.

Lyneer’s revenue can vary because its customers can terminate their relationship with them at any time with limited or no penalty.

Lyneer focuses on providing
mid-level professional and light industrial personnel on a temporary assignment-by-assignment basis, which customers can generally terminate
at any time or reduce their level of use when compared with prior periods. To avoid large placement agency fees, large companies may use
in-house personnel staff, current employee referrals, or human resources consulting companies to find and hire new personnel. Because
placement agencies typically charge a fee based on a percentage of the first year’s salary of a new worker, companies with many
jobs to fill have a large financial incentive to avoid agencies.

Lyneer’s business is
also significantly affected by its customers’ hiring needs and their views of their future prospects. Lyneer’s customers may,
on very short notice, terminate, reduce or postpone their recruiting assignments with Lyneer and, therefore, affect demand for its services.
As a result, a significant number of Lyneer’s customers can terminate their agreements at any time, making Lyneer particularly vulnerable
to a significant decrease in revenue within a short period of time that could be difficult to quickly replace. This could have a material
adverse effect on Lyneer’s business, financial condition and results of operations.

<div align='center'>6</div>

Lyneer’s service revenue
incre