Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 131

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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 owed, and IDC has entered into a term loan for this amount, plus a $1,000,000 exit fee. The certain junior lenders assumed portions of IDC’s publicly owned stock of Atlantic International Corp as collateral and intends to sell these shares their respective joint and several debt. See Note 18: Subsequent Events for further information. 

26

Cash flows for the three months ended March 31, 2025 and 2024 consisted of the following:

Three Months EndedMarch 31,20252024Net cash provided by operating activities$14,568,690 $11,234,774 Net cash (used in) investing activities(12,079)(14,623)Net cash (used in) financing activities(13,769,275)(11,599,192)Net increase/(decrease) in cash and cash equivalents$787,336 $(379,041)

Cash flows provided by operating activities for the three months ended March 31, 2025 compared to the three months March 31, 2024 was higher primarily due to a decrease in accounts receivable from the prior year end.

Investing Activities

Cash used in investing activities for the three months ended March 31, 2025 decreased compared to March 31, 2024 and consisted entirely of purchases of property and equipment.

Financing Activities

Cash used in financing activities decreased for the three months ended March 31, 2025 compared to March 31, 2024 and consisted of borrowings and payments under the Company’s debt arrangements of the Revolver.

Revolver

Until April 29, 2025, as described below, the Company maintained the Revolver as a co-borrower with IDC with an available borrowing capacity of up to $60,000,000. The facility was partially used to finance the acquisition of Lyneer by IDC in August 2021, with additional borrowing capacity available under the Revolver to finance Lyneer’s working capital. All of Lyneer’s cash collections and disbursements are currently linked with bank accounts associated with the lender and funded using the Revolver. These borrowings are determined by Lyneer’s availability based on a formula of billed and unbilled accounts receivable as defined in the loan agreement.

As of March 31, 2025 and December 31, 2024, the total balance on the Revolver was $40,793,199 and $53,983,962, respectively. As of March 31,