Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 108

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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508,379 Credit Agreement1,950,000 1,950,000 Promissory Note1,375,000 1,375,000 Merger Note35,000,000 35,000,000 Less: unamortized debt issuance costs  (195,652)(244,565)Total debt$66,868,452 $80,588,814 Current portion$64,918,452 $43,883,379 Non-current portion$1,950,000 $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 2024 were in response to the delayed closing of the Merger. As of the issuance date of the Company’s March 31, 2025 unaudited financial statements, the Ninth Amendment to the Revolver and Tenth Amendment to the Term Note represent the currently effective amendments to each respective debt facility, as described further below. As of August 12, 2024, the lenders waived all existing events of default as of the date of the agreement and agreed to forbear from exercising their rights and 

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remedies with respect to such events of default under the credit facilities through March 31, 2025. On April 29, 2025, the Company closed on a new ABL lender with a maturity date of April 29, 2028. See Note 18: Subsequent Events for further discussion.RevolverThe Company maintains a Revolver as a co-borrower with IDC with an initial available borrowing capacity of up to $125,000,000, when originally executed in 2022. The facility was partially used to finance the acquisition of Lyneer Investments by IDC in August 2021, with additional borrowing capacity available under the Revolver to finance the Company’s working capital. All the Company’s cash collections and disbursements are currently linked with bank accounts associated with the Lender and funded using the Revolver. These borrowings are determined by the Company’s availability based on a formula of billed and unbilled accounts receivable as defined in the loan agreement. The Revolver matures on August 31, 2025, at which time all outstanding balances are due and payable. There are no