Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 107

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 when it is reasonably certain that it will exercise that option. We use these options in determining our capitalized financing and right-of-use assets and lease liabilities.Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. To determine the discount rate to use in determining the present value of the lease payments, we use the rate implicit in the lease if determinable, otherwise we use our incremental borrowing rate.The Company maintains operating leases for corporate and field offices. The Company’s leases have initial terms ranging from one month to three years, some of which include the option to renew, and some of which include an early termination option. During the three months ended March 31, 2025, the Company extended certain of its leases for periods ranging from one to three years.

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The following table summarizes the weighted average remaining lease term and discount rate for operating leases as of March 31, 2025 and December 31, 2024:March 31,2025December 31,2024Weighted average remaining lease term for operating leases2.27 years2.07 yearsWeighted average discount rate for operating leases7.06 %6.29 %The following table summarizes the future minimum payments for operating leases as of March 31, 2025, due in each year ending December 31:YearMinimum Lease Payments Remainder of 2025$1,159,843 2026825,661 2027407,416 2028105,706 202964,830 Thereafter47,068 Total lease payments2,610,524 Less: imputed interest(174,382)Present value of operating lease liabilities$2,436,142 

Note 8: DebtSome of the Company’s debt obligations consist of joint and several liabilities with the IDC Technologies Inc. (“IDC”) which are accounted for under ASC 405 – Debt (“ASC 405”). Lyneer will remain jointly and severally liable with the IDC to the lenders of the debt obligations until such time as such joint and several indebtedness is repaid. 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, 2024, between Lyneer and IDC. See below for further discussion.The table below provides a breakdown of the Company’s recognized debt:March 31,2025December 31,2024Revolver$28,739,104 $42,