Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 192

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 192
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 1 to the Merger Note was treated as a modification after the Company’s analysis according to ASC 470 and as such, the Company is deferring the $300,000 amendment fee and will amortize as an adjustment to interest expense over the remaining term using the effective interest method.

On April 29, 2025, the Company entered into an Amended and Restated Convertible Promissory Note which further extended the maturity date to the earlier of March 31, 2027 or the completion of at least a $40 million capital raise. See Note 8: Debt for further information. 

Interest Expense

Total interest expense is comprised of a cash and non-cash component as described in the debt arrangements described above. Additionally, the Company has incurred interest expense related to an agreement with a professional employer organization (“PEO”) who processes the payroll for the Company, related to the unpaid balance at 1.5% per calendar month.

For the three and nine months ended September 30, 2025 total interest expense was $2,094,177 and $5,402,959, respectively. For the three and nine months ended September 30, 2024 total interest expense was $1,472,564 and $10,494,818 respectively. Interest expense related to the PEO was $863,402 and $1,701,729 for the three and nine month periods ended September 30, 2025, respectively, and $0 for each of the three and nine month periods ended September 30, 2024. Total cash paid for interest for the three and nine months ended September 30, 2025 totaled $1,202,388 and $3,509,168, respectively, and $1,386,833 and $5,437,928 for the three and nine months ended September 30, 2024, respectively, with the remaining portion of the interest expense as non-cash due to the paid-in-kind interest and change in values of the accrued interest liability and amortization of deferred financing costs.

Assessment of Liquidity Position

The Company has assessed its liquidity position as of September 30, 2025 and December 31, 2024. As of September 30, 2025 and December 31, 2024, the total committed resources available were as follows:

September 30,2025December 31,2024Cash and Cash Equivalents$83,406 $678,676 Committed Liquidity