Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 131

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 131
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,480 

53

Maturity of Lease LiabilitiesThe following table summarizes the future minimum payments for operating leases as of December 31, 2024, due in each year ending December 31:YearMinimum Lease Payments2025$1,398,593 2026528,973 2027215,140 202849,140 202939,146 Thereafter47,068 Total lease payments$2,278,060 Less: imputed interest(151,192)Present value of operating lease liabilities$2,126,868 

Note 8: Debt

Some of the Company’s debt obligations consist of joint and several liabilities with the Company’s parent which are accounted for under ASC 405 – Debt (“ASC 405”). Lyneer will remain jointly and severally liable with the Company’s parent to the lenders of the debt obligations until such time as such joint and several indebtedness is restructured. As of the date of the Merger, the Company deconsolidated the joint and several liabilities with regard to the Debt Allocation Agreement, dated December 31, 2023, between Lyneer and IDC. See below for further discussion.The table below provides a breakdown of the Company’s recognized debt:December 31, 2024December 31, 2023Revolver$42,508,379 $85,092,695 Term note— 34,223,489 Seller notes— 7,875,000 Earnout notes— 8,366,915 Earnout notes – related party— 5,127,218 Credit Agreement1,950,000 — Promissory Note1,375,000 — Merger Note35,000,000 — Less: unamortized debt issuance costs  (244,565)(1,785,114)Total debt$80,588,814 $138,900,203 Current portion$43,883,379 $138,900,203 Non-current portion$36,705,435 $— The revolving credit facility (the “Revolver”) and Term Note contain certain customary financial and non-financial covenants that the Company is required to comply with. The Company and its lenders executed multiple amendments to its debt facilities in anticipation of the closing of the Merger. The multiple amendments executed since 2023 were in response to the delayed closing of the Merger. As of the issuance date of the Company’s