Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 236

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 236
---
date as of January 25, 2023 (the “T R Miller Purchase Agreement”), among the Company, T R Miller, and Thomas R Miller (the
“T R Miller Stockholder”).

The aggregate consideration required
to be paid to T R Miller for the purchase of the T R Miller Acquired Assets was (a) $1,000 payable in cash on the T R Miller Closing
Date; (b) an amount equal to the cost basis of Inventory (as defined in the T R Miller Purchase Agreement); (c) four annual installment
payments due on each anniversary of the T R Miller Closing Date, equal to $400, $300, $200, and $200, respectively; (d) four annual earn-out
payments equal to (i) 45% of the annual Gross Profit (as defined in the T R Miller Purchase Agreement) during the immediately trailing
12-month period prior to 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 
  
    Fair value of earn-out payments 
     467 
  
    Present value of installment payments 
     951 
  
    Total consideration 
    $3,541 

18

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.

The following table summarizes the