Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2566

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 13
Chunk 2566
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 the applicable T R Miller Closing Date anniversary with respect to certain customers
of T R Miller or primarily resulting from the efforts of the T R Miller Stockholder or certain employees or independent contractors of
T R Miller, to the extent that such Gross Profit amount exceeded $4,000, plus (ii) 25% of the annual Gross Profit during the immediately
trailing 12-month period prior to the applicable T R Miller Closing Date anniversary with respect to certain customers primarily resulting
from the past or future efforts of the Company that are assigned to and the primary responsibility of any employee or independent contractor
of T R Miller as designated by the T R Miller Purchase Agreement, to the extent that such Gross Profit amount exceeded $4,000. The aggregate
T R Miller Purchase Price was approximately $3,541.

The following table summarizes the
estimated fair value of the total consideration required to be paid pursuant to the T R Miller Purchase Agreement as of the T R Miller
Closing Date:

    Cash 
    $1,000 
  
    Cash adjustment for working capital 
     1,123 
  
    Present value of installment payments 
     951 
  
    Fair value of earn-out payments 
     467 
  
    Total consideration 
    $3,541 

The Company determined the estimated
fair value of the earn-out payments based on a discounted cash flow method.

The Company determined the estimated
fair value of the installment payments based on the present value of the future cash flows in accordance with the T R Miller Purchase
Agreement.

F-21

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The following table summarizes the
purchase price allocations relating to the T R Miller Acquisition:

    Accounts receivable 
    $1,622 
  
    Prepaid expense 
     5 
  
    Inventory 
     882 
  
    Customer relationships 
     1,170 
  
    Goodwill 
     720 
  
    Right of use asset - office leases 
     837 
  
    Accounts payable and accrued expenses 
     (591)
  
    Unearned revenue 
     (285)
  
    Lease liability 
     (819)
  
    Total consideration 
    $3,541 

The
T R Miller 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