Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 70

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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$21,612,253 Legacy Stockholder Dividend SettlementsThe Company upon the Merger on June 18, 2024, put in escrow 4,704,098 shares at a closing price of $2.36 per share valued at $11,101,671, as a reserve for the potential settlement amounts of legacy SeqLL stockholders and was required to extend a settlement offer within 90 days from June 18, 2024. The Company extended offers for settlement to the legacy stockholders, as a result of the Company failing to declare and pay a declared dividend as described in the Company’s filings, to issue shares of Atlantic International Corp. stock at the September 10, 2024 closing stock price of $6.45. The Company has issued 773,944 shares in partial satisfaction of this settlement as of the issuance date of the Company’s September 30, 2025 condensed consolidated unaudited financial statements with an issuance stock price range of $2.03 - $6.20 per share, with an estimated additional 1,000,701 shares pending issuance. On October 24, 2024 the Company entered into an Amended and Restated Settlement Agreement and General Release of Claims with regard to the Company’s failure to declare and pay a declared dividend as described in the Company’s filings and the Company’s former Chief Executive Officer agreed to provide consulting services to the Company. In full and final satisfaction of any and all obligations related to the dividend and consulting services, the Company agreed to the following:•$25,000 cash payment as an initial payment under the Consulting Agreement•Consulting fees will be paid at the sum of $7,500 per month, paid quarterly•757,833 shares will be issued as additional consideration for up to 10 hours of services a week. Any weekly hours in excess of those hours will be billed at a negotiated rate•230,027 shares will be issued as a Dividend settlementProfessional Employer OrganizationThe PEO is engaged to process the Company’s payroll which is subject to a periodic charge of 1.5% per calendar month for any unpaid balances. The total liability due to the PEO as of September 30, 2025 was $28,813,099, consisting of $27,111,371 of  wages and salaries paid by the PEO and $1,701,729 of accrued interest. The total liability due to the PEO as of December 31, 2024 was $23,321,