Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 39

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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) the assumption by the Purchaser of certain liabilities totaling approximately $5.5 million (the “Assumed
Liabilities”), subject to adjustments, as described below, at and following the Closing (as defined below), including the payment
at the Closing of $150 to Warson Capital Partners, LLC, an investment banking firm retained by Bangarang, for its fees and expenses with
respect to the Bangarang Transaction, including the marketing for sale of the Bangarang Assets (the “Transaction Expense Payment”).  

As a result of the Closing, the Company
indirectly acquired substantially all of the assets of Bangarang, including all of the equity of Gander Group Louisiana, LLC, a Louisiana
limited liability company, which will be a wholly-owned subsidiary of the Purchaser.

The Company has not completed the purchase
price allocation of this acquisition prior to the issuance of these financial statements, and an estimate of the financial effect of the
transaction cannot be made. All other business combination disclosures are not available due to the proximity of the acquisition to the
issuance of these financial statements. 

26

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Factoring Arrangement and Termination
of Revolving Line of Credit

On August 23, 2024, Stran Loyalty Solutions
entered into a factoring arrangement with a third party to provide accounts receivable financing to Stran Loyalty Solutions. In connection
with the factoring arrangement, the Company provided a secured guarantee of Stran Loyalty Solutions’ obligations under the factoring
arrangement. Prior to this arrangement, the Company had been a party to the Revolving Demand Line of Credit Loan Agreement, dated as of
November 22, 2021, between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem Five Cents”),
as amended by the Commercial Loan Modification Agreement, dated as of February 12, 2024, between the Company and Salem Five Cents (the
“Loan Agreement”), and the Revolving Demand Line of Credit Note, dated November 22, 2021, by the Company in favor of Salem
Five Cents (the “Demand Note”). The Loan Agreement and the Demand Note provided for a secured revolving loan facility in an
aggregate principal amount of up to $7,000 (the “Revolving Line of Credit