Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 175

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 175
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 June 30, 2025 and 2024, respectively, which increased due to the Company’s initiative to sell higher margin accounts.

25

Total Operating Expenses

Total operating expenses for the three and six months ended June 30, 2025 and 2024 consisted of the following:

 Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Selling, general and administrative$18,870,535 $18,553,150 $38,270,014 $28,894,187 Depreciation and amortization1,232,750 1,249,054 2,469,139 2,508,608 Total operating expenses$20,103,285 $19,802,204 $40,739,153 $31,402,795 

The changes in each financial statement line item for the respective periods are described below.

Selling, General and Administrative Costs

Selling, general and administrative expenses for the three months ended June 30, 2025 and 2024 were $18,870,535 and $18,553,150, respectively, an increase of $317,385, or 1.7%, due primarily to stock compensation expense, a full quarter of expenses incurred as a result of the Merger compared to a partial month, partially offset by lower transaction costs related to the Merger. As a percentage of service revenue, net, selling, general and administrative costs were 18.3% in the three months ended June 30, 2025 as compared to 17.7% in the three months ended June 30, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense, a full quarter of expenses incurred as a result of the Merger compared to a partial month, partially offset by lower transaction costs related to the Merger.

Selling, general and administrative expenses for the six months ended June 30, 2025 and 2024 were $38,270,014 and $28,894,187, respectively, an increase of $9,375,827, or 32.4%, due primarily to higher stock compensation expense, a full six months of expenses incurred as a result of the Merger compared to a partial month, partially offset by lower transaction costs related to the Merger. As a percentage of service revenue, net, selling, general