Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 305

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 305
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    $1,000 
  
    Cash adjustment for working capital 
     1,123 
  
    Present value of installment payments 
     951 
  
    Fair value of earn-out payments 
     467 
  
    Total consideration 
    $3,541 

The Company determined the estimated
fair value of the earn-out payments based on a discounted cash flow method.

The Company determined the estimated
fair value of the installment payments based on the present value of the future cash flows in accordance with the T R Miller Purchase
Agreement.

The following table summarizes the
purchase price allocations relating to the T R Miller Acquisition:

    Accounts receivable 
    $1,622 
  
    Prepaid expense 
     5 
  
    Inventory 
     882 
  
    Customer relationships 
     1,170 
  
    Goodwill 
     720 
  
    Right of use asset - office leases 
     837 
  
    Accounts payable and accrued expenses 
     (591)
  
    Unearned revenue 
     (285)
  
    Lease liability 
     (819)
  
    Total consideration 
    $3,541 

The
T R Miller Acquired Assets were valued using a combination of a multi-period excess earnings methodology, a discounted cash flow approach
and present value of cash flows approach. The goodwill represents the excess fair value after the allocation of intangibles, of which
approximately $420 is expected to be deductible for tax purposes.

The
Company incurred approximately $39 of acquisition related transaction costs in conjunction with the T R Miller Acquisition.

Pro forma disclosure for the T R Miller Acquisition

The following unaudited pro forma financial
information reflects the consolidated results of operations of the Company for the six months ended June 30, 2023, as if the T R Miller
Acquisition had taken place on January 1, 2023. The financial results of the T R Miller Acquisition are included in the Company’s
statements of operation for the three and six months ended June 30, 2024. The pro forma financial information is not necessarily indicative
of the results of operations as they would have been had the transactions been effected on the assumed date: 

20

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

    June 30,
 2023 
  
    Sales 
    $41,125 
  
    Costs of sales