Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 314

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 314
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 trademarks on apparel and promotional products as branded products for sale to Innovative Genetics and Innovative Genetics-authorized persons.  $828   $853   

25

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Amounts due and paid to related
party

Transactions with Engage & Excel
Enterprises Inc.

Alan Chippindale, a member of the Company’s
board of directors, the chairman of the Compensation Committee, and a member of the Nominating and Corporate Governance Committee, is
the President of Engage & Excel Enterprises Inc. (“Engage & Excel”). The Company and Engage & Excel are parties
to a Buyer’s Agreement, dated June 25, 2020 (the “Buyer’s Agreement”). Under the Buyer’s Agreement, Engage
& Excel agreed to provide certain merger and acquisition, management and recruitment consulting services in connection with the Company’s
acquisition of the Wildman Imprints assets. The Company agreed to pay Engage & Excel a fee of $20 upon completion of a purchase and
sale agreement and two annual fees of 1.5% of gross margin less costs attributable to the acquisition. The Company has paid Engage &
Excel approximately $23 as of June 30, 2024.

Separately from the Buyer’s Agreement,
in 2023, 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 June 30, 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 June 30, 2024 and 2023, advertising costs amounted to