Atlantic International Corp, formerly SeqLL, Inc., reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company completed its merger with Lyneer Investments LLC on June 18, 2024, marking a strategic shift in its operational focus towards staffing services across various industries in the U.S.

For the three months ended September 30, 2024, Atlantic International Corp generated service revenue of $107.8 million, a 10.2% increase from $97.8 million in the same period of 2023. For the nine-month period, service revenue rose to $313.1 million, up 9.8% from $285.2 million year-over-year. However, gross profit for the nine months decreased slightly to $33.8 million from $34.3 million, reflecting a gross profit margin decline from 12.0% to 10.8%.

The company reported a net loss of $7.0 million for the third quarter of 2024, compared to a loss of $3.9 million in the same quarter of 2023, representing a 79.8% increase in losses. For the nine months, the net loss escalated to $66.8 million from $9.9 million in the prior year, primarily due to increased selling, general, and administrative expenses, which surged by 65.4% to $17.2 million in Q3 2024.

Atlantic's total assets increased to $135.6 million as of September 30, 2024, up from $126.7 million at the end of 2023. The company also reported a significant rise in unbilled accounts receivable, which reached $10.9 million, compared to $5.7 million at the end of 2023. This increase indicates a growing backlog of services rendered but not yet billed.

The company executed a one-for-40 reverse stock split on August 30, 2023, and has since seen its additional paid-in capital rise dramatically to $83.1 million from $22.4 million at the end of 2023. Total stockholders' equity improved to $16.2 million, a notable recovery from a deficit of $39.4 million at the end of 2023.

In terms of debt management, Atlantic's total debt decreased to $80.8 million from $138.9 million at the end of 2023, with a significant reduction in revolving credit facility liabilities. The company has also entered into various amendments and forbearance agreements with lenders to manage its debt obligations effectively.

Looking ahead, Atlantic International Corp is positioned to leverage its expanded operational capabilities post-merger, focusing on enhancing its service offerings and addressing internal control weaknesses identified in its financial reporting processes.