Accrued Expenses and Other Current Liabilities |
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| Accrued Expenses and Other Current Liabilities | Note 9: Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following:
Legacy Stockholder Dividend Settlements The 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 March 31, 2026 unaudited condensed consolidated 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, as of March 31, 2026. On October 24, 2024 the Company entered into an Amended and Restated Settlement Agreement and General Release of Claims with the Company’s former Chief Executive Officer with regard to the Company failing 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 settlement Professional Employer Organization The 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 March 31, 2026 was $39,908,098, consisting of $35,301,862 of wages and salaries paid by the PEO and $4,606,236 of accrued interest. The total liability due to the PEO as of December 31, 2025 was $32,894,331, consisting of $29,306,108 of wages and salaries paid by the PEO and $3,588,223 of accrued interest. Share Settled Redemption Option Granted to PEO On February 3, 2026, (the “Amendment Date”) the Company amended its agreement with the PEO, to whom it had a specific outstanding payable of $2,207,944 (“the Repayment Amount”). At the PEO’s option, at any time from March 16, 2026 to January 31, 2031, it may elect to settle any portion of the Repayment Amount by requiring the Company to issue shares of Common Stock with an aggregate value equal thereto, calculated using the quoted per-share closing price, equal to the amount designated by the PEO for share settlement. At March 31, 2026 the carrying value of the obligation that can be settled in shares was $2,207,944. If the PEO elected full settlement of the obligation on March 31, 2026, the Company would be required to issue 728,694 shares of its Common Stock to settle the obligation. As the number of shares to be issued varies inversely with the market value of the Company’s Common stock, there is no contractual limit on the number shares that may be issued to settle the obligation.
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