Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 176

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 workforce solutions partners in the United States.

At Atlantic, management understands that finding the perfect candidate starts before the job requisition even comes in. The Company employs the strategy of proactive recruitment to build a pipeline of pre-vetted candidates for order fulfillment. Atlantic’s client mix consists of both small- and medium-size businesses, and large national and multinational client relationships. Client relationships with small- and medium-size businesses are based on a local or regional relationship, and tend to rely less on longer-term contracts, and the competitors for this business are primarily locally owned businesses. Comprising over 60% of the Company’s revenue base, the large national and multinational clients, on the other hand, will frequently enter into non-exclusive arrangements with several firms, with the ultimate choice among them being left to local managers. As a result, employment services firms with a large network of offices compete most effectively for this business, which generally has agreed-upon pricing or mark-up on services performed.

Results of Operations

The following discussion summarizes the key factors Atlantic’s management team believes are necessary for an understanding of Atlantic’s financial statements.

Comparison of the Three and Nine Months Ended September 30, 2025 and 2024:

Certain related party and non-related party financial statement line-item amounts have been aggregated for purposes of analysis below, which is consistent with management’s evaluation of its business results.

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The following table summarizes our results of operations for the periods presented:

 Three Months EndedSeptember 30,Change  20252024Amount Percent Service revenue, net$110,127,203 $107,803,843 $2,323,360 2.2%Cost of revenue97,725,227 95,918,373 1,806,854 1.9%Gross profit12,401,976 11,885,470 516,506 4.3 %Selling, general and administrative19,888,692 17,151,567 2,737,125 16.0%Depreciation and amortization1,230,307 1,245,557 (15,250)(1.2)%Loss from operations(8,717,023)(6,511,654)(2,205,369)33.9 %Interest expense2,094,177 1,472,564 621,613 42.2 %Other expense— 285,483 (285,483)(100.0)%Net loss before provision for income taxes(