Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 264

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 264
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of Salem Five Cents; and allowing no change of property management company without the prior written consent of Salem Five Cents.

Prior to the date of
the Loan Modification Agreement, the Revolving Line of Credit was further subject to the following financial requirements: (a) Debt Service
Coverage Ratio: cash flow to be calculated on an annual basis of at least 1.20 times EBITDA less cash taxes, distributions, dividends,
shareholder withdrawals in any form, and unfinanced CAPEX divided by all scheduled principal payments on all debt plus cash interest
payments made on all debt; and (b) the Company was required to meet certain minimum net worth thresholds at December 31, 2021, December
31, 2022 and December 31, 2023.

Following the date of
the Loan Modification Agreement, the Revolving Line of Credit was no longer subject to the Company’s compliance with the Debt Service
Coverage Ratio and the Minimum Net Worth terms described above. Instead, the Company was required to meet the following financial requirements:

●The Company was
                                            required to maintain a “Minimum Interest Coverage” of 1.25:1, tested for fiscal
                                            year ending December 31, 2024 only, and defined as follows: EBITDA (as defined below), divided
                                            by cash interest payments made on all debt. “EBITDA” was defined as the trailing
                                            year’s total of net income before total interest expense, tax expense, and depreciation
                                            and amortization expense. EBITDA was required to be adjusted for extraordinary and/or non-cash
                                            items as defined in accordance with generally accepted accounting principles in the United
                                            States (“GAAP”).

●The Company was
                                            required to maintain a “Minimum Debt Service Coverage Ratio” of 1.20:1, tested
                                            annually beginning with the fiscal year ending December 31, 2025, defined as follows: EBITDA,
                                            less cash taxes, distributions, dividends, stockholder withdrawals in any form, and unfinanced
                                            capital expenditures (as defined below), divided by all scheduled principal payments on all
                                            debt, plus cash interest payments made on all debt, plus cash payments made on contingent
                                            earn-out liabilities. “Unfinanced capital expenditures” was defined as the current
                                            fiscal-year-end net fixed assets, plus current fiscal-year-end depreciation, less prior fiscal-year-end
                                            net fixed assets, less the long-term debt increase.