Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 61

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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165 was recorded during the nine months ended September 30, 2025 and 2024, respectively and is included in “depreciation and amortization” in the accompanying consolidated condensed statements of operations.

Note 6: Intangible AssetsIntangible assets consisted of the following:September 30, 2025December 31, 2024Gross Carrying AmountAccumulated Amortization Net Carrying AmountGross Carrying AmountAccumulated Amortization Net Carrying AmountCustomer Relationships$35,000,000 $(9,534,444)$25,465,556 $35,000,000 $(7,784,444)$27,215,556 Trade Name12,400,000 (10,065,000)2,335,000 12,400,000 (8,220,000)4,180,000 Total intangible assets$47,400,000 $(19,599,444)$27,800,556 $47,400,000 $(16,004,444)$31,395,556 Total amortization expense of $1,198,334 was recorded during each of the three months ended September 30, 2025 and 2024 and $3,595,000 was recorded during each of the nine months ended September 30, 2025 and 2024. The Company continuously monitors for events and circumstances that could indicate that it is more likely than not that its finite lived intangible assets and other long-lived assets are impaired or not recoverable (a triggering event), requiring an interim impairment test. During the nine months ended September 30, 2025, the Company considered a number of factors including, but not limited to, current macroeconomic conditions such as inflation, economic growth, and interest rate movements, industry and market considerations, and overall financial performance of the Company. Based on the analysis of relevant events and circumstances, the Company concluded a triggering event had not occurred as of September 30, 2025.

Note 7: LeasesWe determine whether an arrangement is a lease at inception and whether such leases are operating or financing leases. For each lease agreement, the Company determines its lease term as the non-cancellable period of the lease and includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. We use these options in determining our capitalized financing and right-of-use assets and lease liabilities.Our lease agreements do not contain any material residual value