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

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 11
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 the client. The current term of the MSA expires in January 2026 and automatically renews for one-year subsequent terms. However, the client may terminate the agreement for convenience at any time, subject to any accrued payment obligations. If this client were to terminate its relationship with Lyneer, Lyneer would face a material decrease in revenues if it is unable to replace the client’s lost revenues. This, in turn, would be expected to have a material adverse effect on Lyneer’s business and financial condition.

IDC, our principal stockholder, defaulted on the joint and several debt obligations of IDC and our Lyneer subsidiary which will resulted in a change of control of our company.

Our principal stockholder, IDC owned approximately 46% of our issued and outstanding common stock. In order to secure the current joint and several debt obligations of IDC and Lyneer until such time as such indebtedness can be restructured or repaid, we pledged to the lender under the Term Note our equity ownership of Lyneer and IDC pledged to such lender its equity ownership in our Company. As set forth below, the lender under the original ABL Revolver foreclosed on IDC’s equity ownership of our Company. Any sales by the lender of IDC’s common stock of our Company, may have an adverse effect on the market price of our common stock resulting in a diminution in the value of disputes or other developments related to proprietary rights, including patents, litigation matters or our ability to obtain intellectual property protection for our technologies.  

In April 2025, IDC’s secured debt holders, BMO and SPP, foreclosed on the IDC portion of the joint and several debt owed to BMO and SPP.   IDC’s shares of the Company were divided between BMO and SPP resulting in SPP 

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owning 21,983,926 shares of the Company and BMO owning another 3,439,803. These shares have not been transferred yet and the transfers are still pending at the company’s transfer agent. 

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None