Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 163

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 163
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 such, the taxable activities of Lyneer Investments for the first short-period, leading up to the merger, are allocated to its two Members, IDC and LMH, both of which report those results on separate income tax returns. For the second short-period, post-merger, Lyneer Investments’ taxable activities will be included on Atlantic International Corp’s income tax returns. For the period of June 18, 2024 to December 31, 2024, the Company plans to file consolidated income tax returns for federal and state income tax purposes. As a single member LLC (owned 100% by Lyneer Holdings, a corporation), LSS is a disregarded entity for US federal tax income tax purposes and its activities will be included on the corporate returns filed by Atlantic International Corp. Prior to the Merger, IDC included the activities and balances of the Company on designated IDC consolidated state and local income tax returns. In these returns, the Company’s income tax will be paid on returns filed by IDC. During the years ended December 31, 2024 and 2023, the Company recognized income tax expense of approximately $25,960 and $119,658, respectively, representing the tax arising from the inclusion of the Company’s activities on IDC’s consolidated state and local returns, and a corresponding cumulative related party payable to IDC of $548,432 and $522,472 as of December 31, 2024 and 2023, respectively.The domestic and foreign components of total loss before provision for (benefit from) income taxes are as follows:Year Ended December 31,20242023United States$(130,100,788)$(21,180,291)Foreign— — $(130,100,788)$(21,180,291)The provision for)/(benefit from) income taxes consists of the following expenses (benefits):Year Ended December 31,20242023FederalCurrent$34,523 $(736,797)Deferred3,649,803 (3,923,706)State and LocalCurrent104,573 (46,627)Deferred1,590,203 (1,221,141)Income tax (expense)/benefit$5,379,102 $(5,928,271)

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The provision for/(benefit from) income taxes differs from the United States Federal statutory rate as follows:Year Ended December 31,20242023AmountPercentAmountPercentTax benefit at federal statutory rate$(27,321,