Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 149

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 149
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 |         |   |
|:--------------------------------------------------------------------------------------------|:----|:--------------------|:--------|:--|:----|:-------------|:--------|:--|
| Net cash flow used in continuing operating activities                                       |     | $                   | (13,794 | ) |     | $            | (18,177 | ) |
| Repayments on accounts receivable financing                                                 |     |                     | (3,510  | ) |     |              | (2,624  | ) |
| Net cash used in operating activities including proceeds from accounts receivable financing |     | $                   | (17,304 | ) |     | $            | (20,801 | ) |

The Leverage Ratio and Operating Cash Flow Including Proceeds from Accounts Receivable Financing should be considered together with the information in the “Liquidity and Capital Resources” section, immediately below. Liquidity, Capital Resources and Going Concern Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Historically, we have funded our operations through term loans, promissory notes, bonds, convertible notes, private placement offerings and sales of equity. Our primary uses of cash have been for professional fees related to our operations and financial reporting requirements and for the payment of compensation, benefits and consulting fees. The following trends may occur as the Company continues to execute on its strategy: •an increase in working capital requirements to finance organic growth, •addition of administrative and sales personnel as the business grows, •increases in advertising, public relations and sales promotions for existing and new brands as we expand within existing markets or enter new markets, •a continuation of the costs associated with being a public company, and •capital expenditures to add technologies.

79 Our liquidity may be negatively impacted by the significant costs associated with our public company reporting requirements, costs associated with newly applicable corporate governance requirements, including requirements under the Sarbanes -OxleyAct of 2002 and other rules implemented by the SEC. We expect all of these applicable rules and regulations could significantly increase our legal and financial compliance costs and increase the use of resources. For the year ended December 30, 2023, the Company had a working capital deficit of $45,419, an accumulated deficit of $127,056, and a net loss of $26,041. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”),