Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1447

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 7
Chunk 1447
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 will include cannabis. The Company will invoice Innovative
Genetics upon delivery of each shipment. In connection with the foregoing, the Company will purchase products from various factories,
pay them directly, and subsequently charge Innovative Genetics the prices following an outline set forth in the Innovative Genetics SOW.
The Innovative Genetics SOW will not require the Company to, and the Company will not, make any payments to Innovative Genetics in connection
with this SOW, including any extensions of credit involving any payments to Innovative Genetics. The total amount to be charged to Innovative
Genetics under the Innovative Genetics SOW will be $1,159,331, related shipping costs with a 15% markup, and duties, taxes, or tariffs
will be charged at cost. The Company will not be a participant in any transaction involving the packaging, sale or distribution of the
final product.

In connection with the Innovative Genetics SOW,
Mr. Tani executed a Guaranty, dated as of March 6, 2023, in favor of and for the benefit of the Company (the “Tani Guaranty”).
Under the Tani Guaranty, Mr. Tani guaranteed the payment of all obligations of Innovative Genetics under the Innovative Genetics Packaging
Agreement and Innovative Genetics SOW. The Tani Guaranty contains other standard provisions for a personal guaranty, including standard
waivers of defenses to payment obligations, reinstatement in the event that any payment must be returned to Innovative Genetics, non-exercise
of subrogation rights against Innovative Genetics or any other guarantor until all payments required under the Innovative Genetics SOW
have been made, subordination of any debts against Innovative Genetics to the obligations of Innovative Genetics to the Company under
the SOW, and payment of any reasonable expenses of the Company, including attorneys’ fees and legal expenses, which the Company
may incur in enforcing its rights under the Innovative Genetics SOW or the Tani Guaranty.

As of December 31, 2024, the balance owed by Innovative
Genetics under the Innovative Genetics SOW was $1,001,000, in addition to related shipping costs with a 30% markup, and duties, taxes,
or tariffs at cost. 8% annual interest began to accrue on the balance for past due payment status as of December 31, 2024.

As of December 31, 2024, the approximate dollar
value of Mr. Tani’s interest in the transaction described above was $1,001