Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 481

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 481
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 -Squaredof 1 means that 100% of the variability in the independent variable can be explained in the dependent variable. Conversely, an R -Squaredof 0 means that the independent variable does not explain any of the variability in the regression. Considering the low trading volume in the Company’s stock, and an R -Squaredof the 5 -yearweekly beta of .02, we opted to use the median Vasicek -Adjustedbeta provided by Kroll. The estimated beta for the Human Resource & Employment Services industry as of October 25, 2024 was 1.13. Risk Premium Over CAPM (Size Premium) The equity risk premium (ERP) is the spread between the return on an estimate of the market portfolio and a risk -freerate. It is intended to capture the additional return investors require to hold risky equity securities as opposed to risk -freedebt. The ERP changes over time, as investors’ tolerance for risk changes. Separately, empirical evidence shows that smaller companies are riskier and that investors require a higher premium to hold them. The size premium represents average annual returns for small capitalization stocks minus average annual returns for large capitalization stocks. We consulted the Kroll data to estimate the size premium. Based on a market capitalization of $1.725 million as of October 25, 2024, Staffing 360 Solutions falls into Decile 10z in the Kroll database. The size premium in this category as of the date of this report was 10.73%. Cost of Equity Estimate (CAPM) Using the inputs discussed above, we estimated the Company’s cost of equity using the CAPM at 20.63%. Weighted Average Cost of Capital (WACC) Calculation Using our estimates for the cost of debt, the cost of equity and estimated debt/equity mix, we estimate the Company’s WACC at 18.79%, as shown below.

| Industry Average Capitalization (as of Sep. 28, 2024) |        |
|:------------------------------------------------------|:-------|
| Equity                                                | 82.3%  |
| Debt                                                  | 17.7%  |
| Total                                                 | 100.0% |

| Industry Debt/Equity Ratio | 17.7%   |
| STAF Debt/Equity Ratio     | 2254.0% |
| Selected Debt/Equity Ratio | 17.7%   |

WACC = % Debt * Cost of Debt * (1