Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 109

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 109
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 cost of revenue was due primarily to higher service revenue, net driven primarily by higher temporary placement services revenue, which increased $28,552,058 or 10.1%. Gross profit for the nine months ended September 30, 2024 and 2023 was $33,840,498 and $34,289,493, respectively, a decrease of $448,995 or 1.3%. As a percentage of service revenue, net, gross profit was 10.8% and 12.0% for the nine months ended September 30, 2024 and 2023, respectively, which decreased due to increasing labor related costs and reduced permanent placements. Total Operating Expenses Total operating expenses for the three and nine months ended September 30, 2024 and 2023 consisted of the following:

|                                                              |     | 2024 | Three Months Ended 
      September 30, |     | 2023 |            |     | 2024 | Nine Months Ended 
     September 30, |     | 2023 |            |   |
|:-------------------------------------------------------------|:----|:-----|-------------------:|:----|:-----|-----------:|:----|:-----|------------------:|:----|:-----|-----------:|:--|
| Selling, general and administrative                          |     | $    |         17,151,567 |     | $    | 10,372,122 |     | $    |        46,045,754 |     | $    | 31,701,396 |   |
| Change in fair value of contingent consideration liabilities |     |      |                  — |     |      |    349,907 |     |      |                 — |     |      |   (150,093 | ) |
| Depreciation and amortization                                |     |      |          1,245,557 |     |      |  1,263,820 |     |      |         3,754,165 |     |      |  3,784,624 |   |
| Total operating expenses                                     |     | $    |         18,397,124 |     | $    | 11,985,849 |     | $    |        49,799,919 |     | $    | 35,335,927 |   |

The changes in each financial statement line item for the respective periods are described below. Selling, General and Administrative Costs Selling