Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 79

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 tax assets. The change in effective tax rates between the periods was primarily due to the establishment of a valuation allowance on the Company’s deferred tax assets, initially recorded during the fourth quarter of 2024.As of June 30, 2025, the Company maintained a valuation allowance against all of its deferred tax assets for which realization cannot be considered more likely than not at this time. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and past financial performance.

Note 17: Earnings per ShareThe following table summarizes the computation of basic and diluted net loss per share:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Numerator:Net loss$(10,718,169)$(54,911,719)$(21,462,354)$(59,778,563)Denominator:Weighted average common shares outstanding, basic and diluted54,553,90528,081,01354,266,33726,752,371Net loss per share, basic and diluted$(0.20)$(1.96)$(0.40)$(2.23)Excluded anti-dilutive shares5,435,9702,377,0915,223,3012,377,091

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Note 18: Subsequent EventsThe Company has evaluated subsequent events through August 14, 2025, as detailed below.

Christopher Broderick, the Company’s current Chief Financial Officer, has announced that he will be retiring on August 15, 2025 for personal family reasons unrelated to the Company. The Company is in the process of evaluating new candidates and intends to replace Mr. Broderick as soon as possible.   

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion relates to Atlantic International Corp. (Atlantic or the Company) and its consolidated subsidiaries and should be read together with the Company’s Consolidated Financial Statements and accompanying notes included in Part I, Item 1.—Financial Statements of this Quarterly Report on Form 10-Q.

Overview

Atlantic, through its subsidiaries, is a national strategic staffing firm servicing the commercial, professional, finance, direct placement, and managed service provider verticals. Lyneer was formed under the principles of honesty and integrity, and with the view of