Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 372

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 372
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 511on October 9, 2024, $ 107on November 1, 2024, $ 107on December 1, 2024, $ 106on January 1, 2025, and a final payment of $ 705on February 1, 2025. In accordance with Amendment, No.1, payments were made on October 9, 2024 and November 1, 2024. Pursuant to the Headway Acquisition that closed on May 18, 2022, the purchase price includes an earnout payment totaling up to $ 5,000of earn out provision. Upon the attainment of certain trailing twelve -month(“TTM”) EBITDA achievements the Company will pay to the Headway seller a contingent payment in accordance with the following: Adjusted EBITDA of $0 or less than $0 = no Contingent Payment Adjusted EBITDA of $500 x 2.5 multiple = $1,250 Contingent Payment Adjusted EBITDA of $1,000 x 2.5 multiple = $2,500 Contingent Payment Adjusted EBITDA of $1,800 x 2.5 multiple = $4,500 Contingent Payment Adjusted EBITDA of $2,000 or more x 2.5 multiple = $5,000 Contingent Payment F-72

STAFFING 360 SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share, per share and stated value per share)
(UNAUDITED) NOTE 10 — COMMITMENTS AND CONTINGENCIES (cont.) The Company performed an analysis over the contingent payment and prepared a forecast to determine the likelihood of the Adjusted EBITDA payout. The adjusted EBITDA TTM forecast, as of June 2024, is above the $ 2,000threshold amount, such that $ 5,000was recorded as consideration. The balance at September 28, 2024 is $ 5,000. Legal Proceedings Whitaker v. Monroe Staffing Services, LLC & Staffing 360 Solutions, Inc. On March 9, 2024, a Settlement and Release Agreement was entered into by both parties. Under this agreement, which was entered into to avoid costly court fees, the Company agreed to make a payment, in full and final settlement, of