Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 183

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 183
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 payable and accrued expenses |     |            | (559 | ) |
| Note payable                          |     |            | (162 | ) |
| Total consideration                   |     | $          |  433 |   |

The Trend 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 $ 10is expected to be deductible for tax purposes.

Pro forma disclosure for the Trend Acquisition

The financial results of this acquisition are included in the Company’s statements of operations from the date of acquisition. As a privately held company, Trend’s historic cash basis financial statements were unaudited and not prepared under US GAAP, including, but not limited to, differences in revenue recognition. The disclosure of supplemental pro forma financial information required under ASC 805 for a public business entity has been deemed impracticableby management due to these reasons.

Premier Business Services Acquisition

On December 20, 2022 (the “Premier Closing Date”), the Company completed its acquisition (the “Premier Acquisition”) of substantially all of the assets of Premier NYC (the “Premier NYC Acquired Assets”), pursuant to the Asset Purchase Agreement dated as of November 29, 2022 (the “Premier Purchase Agreement”), by and between the Company and Peter Poser (the “Premier NYC Seller”).

The aggregate consideration required to be paid by the Company to the Premier NYC Seller for the purchase of the Premier NYC Acquired Assets (the “Premier Purchase Price”) was: (a) $ 100paid on the Premier Closing Date; (b) restricted shares of common stock issued on the Premier Closing Date that was equal to the quotient of $ 25divided by the daily volume-weighted average price of the common stock on The Nasdaq Capital Market for the five trading days prior to the Premier Closing Date; (c) three annual installment payments to the Premier NYC Seller due on each anniversary of the Premier Closing Date equal to $ 60, $ 40, and $ 30, respectively; and (d) three annual earn-out payments payable in cash, in an amount equal to 45% of annual Gross Profit (as defined in the Premier Purchase Agreement) to the extent that such Gross Profit during the immediately trailing 12-month period prior to the applicable Premier Closing Date anniversary is in excess of $ 350. The Premier Purchase Price was subject to a