Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 479

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 479
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, the revenue and earnings estimates contained in the forecasted data we were provided appeared reasonable. In addition to the forecasted financial statement data we made the following input assumptions: Income Tax Rate(s) Assumptions The Company is incorporated in Delaware and Headquartered in New York, New York. Thus, it is subject to both federal and state corporate income tax rates. The Tax Cut and Jobs Act (TCJA) reduced the corporate income tax rate to 21%. The corporate tax rate in New York is 7.25%. We estimated the combined tax rate as follows: Federal tax bracket + effective state tax bracket = combined (state + federal) tax bracket Where the effective state tax bracket is calculated as follows: (100% - federal tax bracket) x state tax bracket = effective state tax bracket In our analysis, we used the effective state -plus -federaltax rate of 26.73%.

| Value of Staffing 360 Solutions, Inc. Common Stock |

Annex B-7

Discount Rate The discount rate represents the risk an investor is willing to accept for the potential reward an investment in the subject company will return. Different rates apply to different types of investors. For example, since equity investments are riskier than debt investments, equity investors require a higher return to compensate them for that risk. Discount rates are based on factors that can be contrasted against investing in other vehicles of similar risk that are available as of the valuation date. When discounting Free Cash Flows to the Firm, the appropriate discount rate is the Weighted Average Cost of Capital (WACC). The WACC captures the required return to each of the firm’s investor classes and is weighted by the proportion that each investor class contributes to the firm’s capital structure. Mathematically, the WACC is expressed as follows: WACC = W d *(r d *(1 -t )) + W e *(r e ), where: W dequals the value of debt in the firm’s capital structure. r dequals the required return for investors to hold the company’s debt. t is the marginal corporate tax rate. W eequals the value of common equity in the firm’s capital structure. r eequals the required return to equity investors. The Weights of Debt and Equity, W d and W e For cost of capital calculations, the weights of debt and equity should be market values and should represent the optimal capital structure for the Company. To determine the Company’s optimal weighting of debt and equity, we analyzed the capital structures of comparable publicly traded companies,