Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 69

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 the completion of at least a $40 million capital raise. Subsequent to the executed amendments of the Company’s debt obligations described herein, the future minimum principal payments on the Company’s outstanding debt are as follows: September 30, 2025Remainder of 2025$1,375,000 20261,950,000 202735,000,000 202838,363,904 2029— Thereafter— Total$76,688,904 Interest ExpenseThe Company recognized total interest expense of $2,094,177 and $1,472,564 during the three months ended September 30, 2025 and 2024, respectively and $5,402,959 and $10,494,818 during the nine months ended September 30, 

16

2025, and 2024. The Company incurred interest expense related to an agreement with a professional employer organization (“PEO”) which processes the payroll for the Company, related to the unpaid balance, at 1.5% per calendar month. 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. $39,163 and $6,522 of deferred financing costs were recognized as a component of “interest expense” on the accompanying unaudited condensed consolidated statements of operations for the three months ended  September 30, 2025 and 2024, respectively and  $130,271 and $545,362 for the nine months ended September 30, 2025 and 2024, respectively.

Note 9: Accrued Expenses and Other Current LiabilitiesAccrued expenses and other current liabilities consist of the following: September 30,2025December 31,2024Potential settlement offer for legacy stockholders$8,723,200 $11,101,671 Accrued wages and salaries2,945,967 2,463,693 Accrued commissions and bonuses2,368,377 3,515,821 Accrued interest782,937 683,046 Income tax payable13,913 13,913 Accrued other expenses and current liabilities4,768,247 3,834,109 Total accrued expenses and other current liabilities$19,602,641