Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 133

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 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 six months ended June 30, 2025 was $2.37.

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The following table summaries 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 June 30, 20251,000,000$2.67 $— Exercisable at June 30, 2025—$— $— Vested or expected to vest at June 30, 20251,000,000$2.67 $— As of June 30, 2025, there was $2,320,389 of unrecognized stock-based compensation related to stock options outstanding and the average remaining contractual life on outstanding options was 4.92 years.Stock-based compensation expense included in the accompanying consolidated statements of operations was:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Stock-based compensation expense $6,221,140 $4,506,066 $12,261,113 $4,506,066 

Note 16: Income TaxesFor the three months ended June 30, 2025 and 2024, the Company recorded an income tax (expense)/benefit of $(9,618) and $17,221,979, respectively and $(19,235) and $18,512,574 for the six months ended June 30, 2025 and 2024, respectively. The Company’s effective tax rate for the six months ended June 30, 2025 and 2024 was (0.1)% and 23.6%, respectively. The effective tax rate for