Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 181

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 181
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 of supplemental pro forma financial information required under ASC 805 for a public business entity has been deemed impracticableby management due to these reasons.

Trend Acquisition

On August 31, 2022 (the “Trend Closing Date”), the Company completed its acquisition (the “Trend Acquisition”) of substantially all of the assets of Trend Brand Solutions (the “Trend Acquired Assets”), pursuant to the Asset Purchase Agreement by and among the Company, Trend Brand Solutions, and Michael Krausner, dated as of July 13, 2022 (as amended on August 31, 2022, the “Trend Purchase Agreement”).

F-27 STRAN & COMPANY, INC.
NOTES TO THE RESTATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

The aggregate consideration required to be paid by the Company to Trend Brand Solutions for the purchase of the Trend Acquired Assets (the “Trend Purchase Price”) was: (a) $175 paid on the Trend Closing Date; (b) an amount equal to the amount paid by Trend Brand Solutions (at cost) for all of the Inventory (as defined in the Trend Purchase Agreement) that was on hand as of the Trend Closing Date; (c) an amount equal to the depreciated value of the Fixed Assets (as defined in the Trend Purchase Agreement); (d) four annual installment payments (each, a “Trend Installment Payment” and collectively, the “Trend Installment Payments”), consisting of (i) approximately $38 within 45 days of the first anniversary of the Trend Closing Date, (ii) approximately $38 within 45 days of the second anniversary of the Trend Closing Date, (iii) $25 within 45 days of the third anniversary of the Trend Closing Date, and (iv) $25 within 45 days of the fourth anniversary of the Trend Closing Date; (e) restricted shares of common stock in an amount equal to the quotient of $100 divided by the daily volume-weighted average price of the common stock on The Nasdaq Capital Market for the five trading days prior to the Trend Closing Date; and (f) earn-out payments within a certain period after each of the first four anniversaries of the Trend Closing Date, in an amount equal to 40% of annual Gross Profit (as defined in the Trend Purchase Agreement) to the extent that such Gross Profit during the immediately trailing 12-month period prior to the applicable Trend Closing Date anniversary is in excess of $800.