Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 487

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 487
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 and multiples. Discounted Cash Flow Analysis The first valuation method we used to estimate the value of the Company’s Common Stock was an income -basedmethod called the discounted cash flow (DCF) method. The income -basedvaluation method is a fundamental valuation methodology used by valuation analysts. It is premised on the principle that the value of a company can be derived from the present value of its projected cash flows (i.e., projected benefits). In forecasting a company’s future benefits, an analyst uses a variety of assumptions and judgments about a company’s expected financial performance, including, but not limited to, sales growth rates, profit margins, capital expenditures and investments in net working capital. In an income -basedvaluation, an analyst explicitly forecasts the future cash flows over a reasonably foreseeable short term and estimates a long -termbenefit stream beyond the forecast period that is stable and sustainable. This long -termbenefit is referred to as the terminal value and captures the remaining value of the company beyond the projection period (i.e., its “going -concern” value). Alternatively, the terminal value can be viewed as the value realized upon exiting the investment. To arrive at a value estimate using the income approach, an analyst discounts to the present the explicitly forecasted cash flows and the terminal value estimate at a rate that appropriately reflects the riskiness of the company’s cash flows. In our DCF analysis, we relied upon forecasted financial statement data prepared by the Parent and provided to us by the management of the Company. Based on our professional opinion, the revenue and earnings estimates contained in the forecasted data we were provided appeared reasonable. In addition to the forecasted financial statement data we made the following input assumptions: Income Tax Rate(s) Assumptions The Company is incorporated in Delaware and Headquartered in New York, New York. Thus, it is subject to both federal and state corporate income tax rates. The Tax Cut and Jobs Act (TCJA) reduced the corporate income tax rate to 21%. The corporate tax rate in New York is 7.25%. We estimated the combined tax rate as follows: Federal tax bracket + effective state tax bracket = combined (state + federal) tax bracket Where the effective state tax bracket is calculated as follows: (100% - federal tax bracket) x state tax bracket = effective state tax bracket In our analysis, we used the effective state -plus-federaltax rate of 26.73%.

| Value of Staffing 360 Solutions, Inc. Common Stock |

Annex B-7

Discount