Company: ATLN
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001605888-25-000006
Chunk: 86

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 86
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 in merger43,000,000 — 43,000,000 +Interest expense12,004,860 17,538,816 (5,533,956)(31.6)%Other expense52,047,957 — 52,047,957 +Net loss before (provision for)/benefit from income taxes(130,100,788)(21,180,291)(108,920,497)+Income tax (expense)/benefit(5,379,102)5,928,271 (11,307,373)+Net loss$(135,479,890)$(15,252,020)$(120,227,870)+Net loss per share, basic and diluted$(3.68)$(0.60)$(3.08)+Weighted average shares outstanding, basic and diluted36,783,626 25,423,72911,359,897 44.7 %

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+ -    change greater than ± 100%

Service Revenue, Net

Service revenue, net of discounts, for years ended December 31, 2024 and 2023 consisted of the following:

Year Ended December 31,20242023Temporary placement services$438,820,825 $396,739,483 Permanent placement and other services3,788,989 4,635,218 Total service revenues, net$442,609,814 $401,374,701 

Service revenue, net was $442,609,814 and $401,374,701 for the years ended December 31, 2024 and 2023, respectively, an increase of $41,235,113, or 10.3%. This increase was predominately due to the higher revenues from Lyneer’s temporary placement services business, which increased $42,081,342 or 10.6% in the year ended December 31, 2024 as compared to the same period in 2023 due primarily to a strong sales initiative by the Company. Permanent placement and other services decreased $846,229 or 18.3% due to lower permanent job demand as companies cut back on hiring permanent positions.

Cost of Revenue and Gross Profit

Gross profit reflects the difference between realized service revenue, net and cost of revenues for providing temporary and permanent placement solutions. Cost of revenue consists primarily of fixed and variable directs costs, including 

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payroll, payroll taxes and employee benefit costs. Cost of revenue and