Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 52

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 meet the following financial requirements:

●The Company was
                                            required to maintain a “Minimum Interest Coverage” of 1.25:1, tested for fiscal
                                            year ending December 31, 2024 only, and defined as follows: EBITDA (as defined below), divided
                                            by cash interest payments made on all debt. “EBITDA” was defined as the trailing
                                            year’s total of net income before total interest expense, tax expense, and depreciation
                                            and amortization expense. EBITDA was required to be adjusted for extraordinary and/or non-cash
                                            items as defined in accordance with generally accepted accounting principles in the United
                                            States (“GAAP”).

●The Company was
                                            required to maintain a “Minimum Debt Service Coverage Ratio” of 1.20:1, tested
                                            annually beginning with the fiscal year ending December 31, 2025, defined as follows: EBITDA,
                                            less cash taxes, distributions, dividends, stockholder withdrawals in any form, and unfinanced
                                            capital expenditures (as defined below), divided by all scheduled principal payments on all
                                            debt, plus cash interest payments made on all debt, plus cash payments made on contingent
                                            earn-out liabilities. “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