Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 87

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 87
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Unfinanced capital expenditures” was defined as the current
                                            fiscal-year-end net fixed assets, plus current fiscal-year-end depreciation, less prior fiscal-year-end
                                            net fixed assets, less the long-term debt increase.

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●The Company’s
                                            “Ratio of Debt to Tangible Net Worth” was required not to exceed 1.50:1, tested
                                            at financial year-end, defined as total liabilities divided by “tangible net worth,”
                                            defined as total assets, less total liabilities, less intangible assets and amounts due from
                                            stockholder/related parties.

●The Company was
                                            required to maintain a “Minimum Liquidity” of $7.5 million at all times, defined
                                            as cash and short-term investments, less rewards program liabilities.

The Company also could
not incur any additional indebtedness, secured or unsecured, except in the ordinary course of business; make loans or advances to others
or guarantee others’ obligations except for certain ordinary advances to employees or ordinary customer credit terms; make investments;
acquire any business; make capital expenditures except in the ordinary course of business; sell any material assets except in the ordinary
course of business; or grant any security interests or mortgages in its properties or assets. After the date of the Loan Modification
Agreement, any future contingent earn-out obligations were required to be subordinated to the Loan Documents.

In connection with the
Initial Loan Agreement, on November 22, 2021, the Company, Salem Five Cents and Harte Hanks Response Management/ Boston, Inc. (the “Warehouse
Provider”), the lessor of certain warehouse facilities to the Company, executed a Warehouseman’s Waiver in favor of Salem
Five Cents (the “Warehouseman’s Waiver”). Under the Warehouseman’s Waiver, the Warehouse Provider disclaimed
any interest in the property of the Company stored on the premises (the “Collateral”), and agreed not to interfere with Salem
Five Cents’ enforcement of its rights in the Collateral. The Warehouse Provider further agreed to provide notice to Salem Five
Cents of any default by the Company of its obligations as to the Warehouse Provider, and to give Salem Five Cents at least 30 days to
exercise its rights, which period could be extended by Salem Five Cents up to 60 days upon its payment of the per-diem rental amount.
After that period, unless the default had been cured by Salem Five Cents, the Warehouse Provider could dispose of