Company: ATLN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001605888-25-000055
Chunk: 186

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 186
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 Revolver, with a maturity date of April 29, 2028. On April 29, 2025, the previous BMO Revolver lender funded the shortfall of $6,000,000, the IDC portion owed, and IDC entered into a term note for this amount, plus a $1,000,000 exit fee. The certain junior lenders assumed portions of IDC’s publicly owned stock of Atlantic International Corp as collateral and intends to sell these shares their respective joint and several debt. See Note 8: Debt for further information. 

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Cash flows for the nine months ended September 30, 2025 and 2024 consisted of the following:

Nine Months EndedSeptember 30,20252024Net cash provided by (used in) operating activities$3,782,051 $(5,558,718)Net cash (used in) investing activities(44,495)(50,372)Net cash (used in) provided by financing activities(4,332,826)5,653,923 Net increase/(decrease) in cash and cash equivalents$(595,270)$44,833 

Operating Activities

Cash flows provided by (used in) operating activities for the nine months ended September 30, 2025 compared to the nine months September 30, 2024 was higher primarily due to a decrease in deferred income taxes and a decrease in accounts receivable from the prior year end, partially offset by a decrease in accrued expenses from the prior year end and an increase  in due from related parties.

Investing Activities

Cash used in investing activities for the nine months ended September 30, 2025 decreased compared to September 30, 2024 and consisted entirely of purchases of property and equipment.

Financing Activities

Cash (used in) provided by financing activities increased for the nine months ended September 30, 2025 compared to September 30, 2024 and consisted of borrowings and payments under the Company’s debt arrangements of the Revolver and the New Revolving Credit Facility.

Debt Allocation Agreement

Lyneer 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 and concluded it is reasonably probable that IDC can repay their