Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 60

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 largest customer accounted for approximately 5% and 14% of consolidated revenues, respectively and 9% and 14% of consolidated revenues for the nine months ended September 30, 2025 and 2024, respectively. No other customers accounted for more than 10% of the Company’s consolidated revenues in either period. Economic factors specific to this customer could impact the nature, timing and uncertainty of the Company’s revenues and cash flows.Contract assets consists of unbilled accounts receivable of $12,406,011 and $9,368,565 as of September 30, 2025 and December 31, 2024, respectively. Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment upon receipt of invoice.Accounts receivable is as follows: September 30,2025December 31,2024Accounts receivable$50,092,418 $66,800,444 Allowance for doubtful accounts(2,640,971)(2,726,107)Accounts receivable, net$47,451,447 $64,074,337 The Company’s accounts receivable serves as collateral for the Revolver and the Term Note has a second lien after the Revolver.The Company recognized $456,054 and $957,031 bad debt expense during the periods ended September 30, 2025 and September 30, 2024, respectively

None of the Company’s customers accounted for more than 10% of the Company’s accounts receivable as of September 30, 2025 and December 31, 2024. 

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Note 5: Property and EquipmentProperty and equipment consisted of the following: September 30,2025December 31,2024Estimated Useful LifeComputer equipment and software$848,412 $803,917 3 yearsOffice equipment94,876 94,876 5 yearsFurniture and fixtures169,258 169,258 7 yearsLeasehold improvements18,420 18,420 Lesser of lease term or asset lifeTotal$1,130,966 $1,086,471 Less: accumulated depreciation and amortization(883,297)(778,851)Property and equipment, net$247,669 $307,620 Total depreciation expense of $31,974 and $47,223 was recorded during the three months ended September 30, 2025 and 2024, respectively and $104,446 and $159,