Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 26

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 26
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100,000-for-1
forward stock split of our outstanding common stock through the merger by issuing 100,000 shares of our common stock for each previously
outstanding share of common stock of our predecessor Massachusetts company. As a result of this stock split, our issued and outstanding
common stock increased from 100 shares to 10,000,000 shares, all of which were then held
by Andrew Stranberg, our Executive Chairman, Treasurer, Secretary, and director.

Following our reincorporation in Nevada, on May
24, 2021, Mr. Stranberg was our sole stockholder then holding a total of 10,000,000 shares of our common stock. On the date of
the reincorporation transaction, Mr. Stranberg transferred 3,400,000 shares of common stock to Andrew Shape, our Chief Executive Officer
and President and director, and 800,000 shares of common stock to Randolph Birney, a former executive officer of the Company, pursuant
to stock purchase agreements. The price per share was equal to $0.1985 per share, which was the calculated price of a share of common
stock of the Company as of December 31, 2020 determined through a valuation of the shares of common stock of the Company dated April 27,
2021. Each of Messrs. Shape and Birney paid the purchase price for the shares to Mr. Stranberg through the delivery to Mr. Stranberg of
a secured promissory note effective as of May 24, 2021. Each of the promissory notes provides
for 2% simple annual interest. Pursuant to an amendment to the promissory notes and the related stock purchase agreements, dated as of
May 17, 2024, the principal and accrued interest must be repaid by each note’s sixth anniversary, May 24, 2027. Each note grants
a security interest to Mr. Stranberg in the transferred shares as to the repayment obligations under the note.

The stock purchase agreements, as amended, between
Mr. Stranberg and Messrs. Shape and Birney provided that the shares are also subject to a lockup provision providing that one-half of
the purchased shares may not be sold until the second anniversary of the date of the stock purchase agreement, or May 24, 2023; provided,
however, that such restriction on transfer will expire at a rate of 1/48th of the shares