Series B Preferred Stock is a participating security for purposes of ASC 260. The Company applies the two-class method in computing earnings per share. Because the Series B Preferred Stock does not participate in losses or negative undistributed earnings beyond its earned dividend for the period, no residual net loss was allocated to the Series B Preferred Stock for the three months ended March 31, 2026. For purposes of determining diluted earnings per share, the Company evaluates the Series B Preferred Stock under both the two-class method and the if-converted method and reports the more dilutive result, if any. Preferred stock dividends reduce income available to common stockholders in basic EPS, and when there is a net loss, the preferred dividend increases the loss attributable to common stockholders.

On January 23, 2026, in connection with the Circle8 Acquisition, the Company recognized a redeemable NCI representing the common stock of Circle8 Consulting held by the noncontrolling holder. The Company elected to treat the full change in redemption value of that redeemable NCI as a deemed dividend for earnings per share purposes. Because the redeemable NCI is in the form of common stock redeemable at an amount other than fair value, the periodic accretion affects the EPS numerator. Consistent with the Company’s policy election, the $2,142,883 accretion recorded during the three months ended March 31, 2026 was treated as a reduction of income available to Atlantic common stockholders. Because the Company had an accumulated deficit as of March 31, 2026, the accretion was recorded as a reduction of additional paid-in capital rather than retained earnings. The redeemable NCI represents common stock of Circle8 Consulting, not Atlantic common stock, and therefore does not increase the denominator of Atlantic’s basic or diluted earnings per share.

For the three months ended March 31, 2026, net loss attributable to Atlantic common stockholders for basic and diluted earnings per share was further reduced by the earned and payable Series B Preferred Stock dividend of $9,986. ASC 260 requires the Company to start from income (loss) attributable to the parent after allocation to NCI and then deduct preferred dividends and other dividend-like adjustments in arriving at income (loss) available to common stockholders.

Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue Atlantic common stock were exercised, converted, or settled in shares. For the three months ended March 31, 2026 and 2025, the Company reported net losses and, accordingly, all potential common shares were antidilutive and excluded from diluted earnings per share. As a result, diluted net loss per share equals basic net loss per share for each period presented


	Three Months Ended March 31,
		2026		2025
Numerator:
Net loss attributable to Atlantic		$	(30,746,125)	$	(10,744,185)
Less: Series B Preferred Stock dividend		(9,986)		—
Less: Deemed dividend from accretion of redeemable NCI		(2,142,883)		—
Net loss available to Atlantic common stockholders		$	(32,898,994)	$	(10,744,185)
Denominator:
Weighted-average Atlantic common shares outstanding, basic and diluted		74,007,596		53,975,575
Net loss per share, basic and diluted		$	(0.44)	$	(0.20)
Excluded anti-dilutive shares		77,646,148		5,008,268

•Series B Preferred Stock — two-class method for basic earnings per share because the instrument is a participating security, and the if-converted method for diluted earnings per share, with the more dilutive result reported when applicable. 1,368,036 shares were anti-dilutive for the three months ended March 31, 2026.

•Convertible Note — if-converted method, subject to the satisfaction of any conversion contingencies. Because the Convertible Note was contingently exercisable as of March 31, 2026, the Company evaluated the instrument under the applicable contingently convertible/contingently issuable share guidance. 53,291,744 shares were anti-dilutive for the three months ended March 31, 2026.

•Share Settled Earnout arrangement — contingently issuable share guidance. The Company evaluates the arrangement based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period. Because the arrangement was contingently issuable as of March 31, 2026, it was excluded from diluted earnings per share. 9,552,348 shares were anti-dilutive for the three months ended March 31, 2026.

•Merger Note — if-converted method, subject to the satisfaction of any conversion contingencies. Because the Convertible Note was contingently exercisable as of March 31, 2026, the Company evaluated the instrument under the applicable contingently convertible/contingently issuable share guidance. 9,489,710 shares were anti-dilutive for the three months ended March 31, 2026.