Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 79

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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ive Plan. The payment of dividend equivalents in cash shall not count against the share reserve.Restricted Stock UnitsThe Company granted 5,305,058 restricted stock units to employees, which will vest in 2026, and 1,000,000 restricted stock units to non-employees, which are fully vested, under its 2023 Incentive Plan during the nine months ended September 30, 2025. As of September 30, 2025, the Company had 4,727,881 unvested RSUs with a grant date fair value of $5.01.

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The following table summarizes the Company’s restricted stock activity consisting of RSUs: Shares Outstanding Weighted Average Grant Date Fair ValueOutstanding at December 31, 2024241,932$2.36 Granted6,305,058$4.55 Vested(1,241,938)$2.17 Forfeited(577,171)$5.85 Unvested at September 30, 20254,727,881$5.01 As of September 30, 2025, there was $7,031,042 of unrecognized stock-based compensation related to RSUs outstanding, which is expected to be recognized over a weighted-average remaining service period of less than one year.Stock OptionsStock options to purchase the Company’s common stock are granted to employees and directors, upon approval by the Board of Directors, with an exercise price equal to the fair market value of the stock on the date of grant. Options generally become exercisable in four years, in equal installments beginning one year from the date of grant, and generally expire five years from the date of grant. The fair value of the Company’s stock options is estimated on the date of grant using the Black-Scholes option-pricing model. The grant date fair value of the stock options granted during the nine months ended September 30, 2025 was $2.37.The following table summarizes the Company’s stock option activity:Stock OptionsWeighted Average Exercise Price Per ShareAggregate Intrinsic ValueOutstanding at December 31, 2024—$— $— Granted1,000,000$2.67 Outstanding at September 30, 20251,000,000$2.67 $380,000 Exercisable at September 30, 2025—$— $— Vested or expected to vest at September 30, 20251,