Company: ATLN
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001605888-25-000019
Chunk: 88

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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 deferred financing costs.

29

Assessment of Liquidity Position

The Company has assessed its liquidity position as of March 31, 2025 and December 31, 2024. As of March 31, 2025 and December 31, 2024, the total committed resources available were as follows:

March 31,2025December 31,2024Cash and Cash Equivalents$1,466,012 $678,676 Committed Liquidity Resources Available:Short-term Revolving Credit Facility127,537 (1,299,463)Total Committed Resources Available$1,593,549 $(620,787)

The Company has closed on a new ABL lender credit facility on April 29, 2025, replacing its obligations under the current Revolver, with an increased borrowing capacity of up to $70 million. The Company believes the borrowing capacity under this new credit facility and its cash flow from operations will provide sufficient liquidity and capital resources to conduct its planned operations for at least one year.

Refer To Note 3: Summary of Significant Accounting Policies, Liquidity.

30

Related Party Transactions

Transactions with Lyneer Management Holdings LLC (“LMH”)

LMH was 90% owned by Lyneer’s Chief Financial Officer, James Radvany, and its Chief Executive Officer, Todd McNulty, each of whom owns 44.5% of LMH. On February 28, 2024, LMH exercised its right to put its 10% ownership interest in the Company to IDC. On November 15, 2022, Lyneer and IDC as co-borrowers issued Year 1 Earnout Notes to LMH with total balances of November 15, 2022. On January 16, 2024, Lyneer and IDC as co-borrowers issued Year 2 Earnout Notes to LMH with total balances of $2,013,041. On the date of the Merger, the Company deconsolidated this debt. Refer to Note 8: Debt for additional information.

Interest expense incurred on the Earnout Notes to LMH totaled $0 and $173,737 for the three months ended March 31, 2025 and 2024, respectively.

Transactions with IDC

Lyneer and IDC are co-borrowers and are jointly and severally liable for principal and interest payments under the Revolver, the Term Note, the Seller Notes and the Earnout Notes. In the