Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 546

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 546
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 of invoice not subject to any prior assignment, claim, lien, or security interest, not subject to set-off, credit, allowance or adjustment
by the account debtor, arose in the ordinary course of the Company’s business, not an intercompany obligation, not subject to notice
of bankruptcy or insolvency of the account debtor, not owed by an account debtor whose principal place of business was outside the United
States, not a government account, not be evidenced by promissory notes, and not one of the accounts owed by an account debtor 25% or more
of whose accounts were 90 or more days past invoice date; or otherwise not deemed acceptable by Salem Five Cents in accordance with its
normal credit policies. “Eligible Inventory” was defined as all finished goods, work in progress and raw materials and component
parts of inventory owned by the Company. Eligible Inventory did not include any inventory held on consignment or not otherwise owned by
the Company; any inventory which had been returned by a customer or was damaged or subject to any legal encumbrances other than a first
priority security interest held by the Company; any inventory which was not in the possession of the Company; any inventory which was
held by the Company on property leased by the Company unless Salem Five Cents had received a Landlord’s Waiver and Consent from
the lessor of such property satisfactory to Salem Five Cents; any inventory which was not located within the United States; any inventory
which Salem Five Cents reasonably deemed to be obsolete or non-marketable; and any inventory not subject to a first priority fully perfected
lien held by Salem Five Cents.

48

The Revolving
Line of Credit was subject to interest at the prime rate plus 0.5% per annum. The Company was required to repay interest on the Revolving
Line of Credit proceeds on a monthly basis. The Revolving Line of Credit continued indefinitely, subject to Salem Five Cents’ demand
rights and the Company’s ongoing affirmative and other obligations under the Loan Documents, as summarized below.

The Company
could freely draw upon the Revolving Line of Credit subject to Salem Five Cents’ right to demand complete repayment of the Revolving
Line of Credit at any time. Late payments were subject to a late payment charge of 5.0%. In the event of failure to repay the loan after
Salem Five Cents made demand for full repayment, the interest rate would increase by 10.0%. The Demand Note could be