Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 119

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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7602,570 2028165,370 202964,830 Thereafter47,069 Total lease payments2,377,853 Less: imputed interest(156,445)Present value of operating lease liabilities$2,221,408 

Note 8: DebtSome of the Company’s debt obligations consist of joint and several liabilities with the IDC Technologies Inc. (“IDC”) which are accounted for under ASC 405 – Debt (“ASC 405”). Lyneer will remain jointly and severally liable with the IDC to the lenders of the debt obligations until such time as such joint and several indebtedness is repaid. As of the date of the Merger, the Company deconsolidated the joint and several liabilities with regard to the Debt Allocation Agreement, dated December 31, 2024, between Lyneer and IDC. See below for further discussion.The table below provides a breakdown of the Company’s recognized debt:September 30,2025December 31,2024Revolver$38,363,904 $42,508,379 Credit Agreement1,950,000 1,950,000 Promissory Note1,375,000 1,375,000 Merger Note35,000,000 35,000,000 Less: unamortized debt issuance costs  (302,645)(244,565)Total debt$76,386,259 $80,588,814 Current portion$3,325,000 $43,883,379 Non-current portion$73,061,259 $36,705,435 On April 29, 2025, the Company closed on a new ABL lender with a maturity date of April 29, 2028. See below for further discussion.Debt Allocation AgreementLyneer and IDC entered into a debt allocation agreement (the “Allocation Agreement”) dated as of December 31, 2023, which specifies and allocates responsibility for repaying (or refinancing) the joint-and-several debts between Lyneer and IDC. The Company reassessed its accounting for joint-and-several liabilities under ASC 405-40 as of the Merger date 

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and concluded it is reasonably probable that IDC can repay their portion of the debt allocated per the Allocation Agreement. As a result, the Company deconsolidated it’s joint and several debt obligations. See Revolver (discussing the previous BMO Revolver), Term