Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 87

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 87
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 are described below.

Selling, General and Administrative Costs

Selling, general and administrative expenses for the three months ended September 30, 2025 and 2024 were $19,888,692 and $17,151,567, respectively, an increase of $2,737,125, or 16.0%, due primarily to stock compensation expense, partially offset by lower transaction costs attributed to the Merger in 2024. As a percentage of service revenue, net, selling, general and administrative costs were 18.1% in the three months ended September 30, 2025 as compared to 15.9% in the three months ended September 30, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense, partially offset by lower transaction costs related to the Merger.

Selling, general and administrative expenses for the nine months ended September 30, 2025 and 2024 were $58,158,706 and $46,045,754, respectively, an increase of $12,112,952, or 26.3%, due primarily to higher stock compensation expense, a full nine months of expenses incurred as a result of the Merger compared to a  three and a half months, partially offset by lower transaction costs related to the Merger. As a percentage of service revenue, net, selling, general and administrative costs were 18.4% in the nine months ended September 30, 2025 as compared to 14.7% in the nine months ended September 30, 2024. The increase in selling, general and administrative costs as a percentage of service revenue, net was due primarily to stock compensation expense, a full nine months of expenses incurred as a result of the Merger compared to three and a half months, partially offset by lower transaction costs related to the Merger in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended September 30, 2025 and 2024 was $1,230,307 and $1,245,557, respectively, a decrease of $15,250 or 1.2%, which was slightly lower on a year-over year basis primarily due to more of the Company’s computer software being fully depreciated at the end of 2024