Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 545

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 545
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 compared to approximately $0.9 million for the year ended December 31, 2023. The increase in
net cash used in financing activities was primarily due to reduced payments of contingent earn-out liabilities of approximately $0.6 million
and increased payments of installment payment liabilities of approximately $0.6 million.

Debt

On November
22, 2021, we entered into the Revolving Demand Line of Credit Loan Agreement, dated as of November 22, 2021 (the “Initial
Loan Agreement”), between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem Five
Cents”), for a revolving line of credit (the “Revolving Line of Credit”), consisting
of aggregate loans of up to $7.0 million, evidenced by the Revolving Demand Line of Credit Note, dated November 22, 2021, by the
Company in favor of Salem Five Cents (the “Demand Note”).
The Revolving Line of Credit and the Demand Note were secured by a first priority security interest in all assets and property of the
Company, as provided in the Security Agreement, dated November 22, 2021, between Salem Five Cents and the Company (the “Security
Agreement”), and as described below. Under a Commercial Loan Modification Agreement, dated as of February 12, 2024, between
Salem Five Cents and the Company (the “Loan Modification Agreement”), certain
terms of the Initial Loan Agreement were modified as of February 12, 2024, as described below
(as amended, the “Loan Agreement” and together with the Security Agreement and the Demand
Note, the “Loan Documents”).

The amount
available under the Revolving Line of Credit was the lesser of $7.0 million or the sum of (x) eighty percent (80.0%) of the then-outstanding
amount of Eligible Accounts (as defined below), plus (y) fifty percent (50.0%) of Eligible Inventory (as defined below); minus one hundred
(100.0%) percent of the aggregate amount then drawn under the Revolving Line of Credit for the account of the Company. In addition, advances
based upon Eligible Inventory were required to be capped at all times at $2.0 million. “Eligible Accounts” was defined as
accounts that meet a number of requirements, including, unless otherwise approved by Salem Five Cents, being less than 90 days from the
date