Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 33

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 the Company paid Engage & Excel approximately $18 for recruiting fees and $20 for consulting fees relating to
the T R Miller assets acquisition. The Company also agreed to pay Engage & Excel 1.5% of the contribution margin of the T R Miller
assets for two years, paid annually. The Company has paid Engage & Excel for consulting services $5 as of March 31, 2024. The Company’s
board of directors has determined that Mr. Chippindale remains eligible under Nasdaq rules to serve as an “independent director”
of the Company and as a member and chairman of the Compensation Committee and a member of the Nominating and Corporate Governance Committee.
Due to Mr. Chippindale’s indirect compensation under the agreement, the board has determined that he is currently not eligible
to be a member of our Audit Committee.

R.ADVERTISING:

The Company follows the policy of
charging the costs of advertising to expense as incurred. For the three months ended March 31, 2024 and 2023, advertising costs amounted
to $105 and $172, respectively.

25

S.SUBSEQUENT EVENTS:

Completion of Bangarang Acquisition:

On August 23, 2024, Stran Loyalty
Solutions, LLC, a Nevada limited liability company (the “Purchaser” or “Stran Loyalty Solutions”), a wholly-owned
subsidiary of the Company, entered into a Secured Party Sale Agreement, dated as of August 23, 2024 (the “Sale Agreement”),
with Sallyport Commercial Finance, LLC, a Delaware limited liability company (“Secured Party”), pursuant to which the Purchaser
agreed to purchase, on an as-is basis, all of the rights and interests of Bangarang Enterprises, LLC, a California limited liability
company (d/b/a Gander Group) (“Bangarang”), in and to substantially all of the assets of Bangarang (the “Bangarang
Assets”) from Secured Party as a private sale pursuant to Article 9 of the Uniform Commercial Code (the “Bangarang Transaction”).

Under the Sale Agreement, the aggregate
consideration for the Bangarang Assets consisted of (a) cash payments by the Purchaser to Secured Party of $1,099 (the “Cash Purchase
Price”), and (b) the assumption by the Purchaser of certain liabilities totaling approximately $5.5 million (the “Assumed
Liabilities”), subject to