Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 110

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 110
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 payroll taxes and employee benefit costs. Cost of revenue and gross profit for the three and nine months ended September 30, 2024 and 2023 consisted of the following:

|                      |     | 2024 | Three Months Ended 
      September 30, |     | 2023 |            |     | 2024 | Nine Months Ended 
     September 30, |     | 2023 |             |
|:---------------------|:----|:-----|-------------------:|:----|:-----|-----------:|:----|:-----|------------------:|:----|:-----|------------:|
| Service revenue, net |     | $    |        107,803,843 |     | $    | 97,785,156 |     | $    |       313,063,328 |     | $    | 285,177,880 |
| Cost of revenue      |     |      |         95,918,373 |     |      | 86,179,981 |     |      |       279,222,830 |     |      | 250,888,387 |
| Gross profit         |     | $    |         11,885,470 |     | $    | 11,605,175 |     | $    |        33,840,498 |     | $    |  34,289,493 |

Cost of revenue for the quarters ended September 30, 2024 and 2023 was $95,918,373 and $86,179,981, respectively, an increase of $9,738,392 or 11.3%. The increase in cost of revenue was due primarily to higher service revenue, net driven primarily by higher temporary placement services revenue, which increased $10,342,841 or 10.7%. Gross profit for the quarter ended September 30, 2024 and 2023 was $11,885,470 and $11,605,175, respectively, an increase of $280,295 or 2.4%. As a percentage of service revenue, net, gross profit was 11.0% and 11.9% for the quarter ended September 30, 2024 and 2023, respectively, which decreased due to increasing labor related costs and reduced permanent placements. Cost of revenue for the nine months ended September 30, 2024 and 2023 was $279,222,830 and $250