Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1206

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 5
Chunk 1206
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 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 represents the excess fair value after the allocation of intangibles, of which
approximately $420 is expected to be deductible for tax purposes.

The
Company incurred approximately $39 of acquisition related transaction costs in conjunction with the T R Miller Acquisition.

Pro forma disclosure for the T R Miller Acquisition

The following unaudited pro forma financial
information reflects the consolidated results of operations of the Company for the year ended December 31, 2023, as if the T R Miller
Acquisition had taken place on January 1, 2023. The financial results of the T R Miller Acquisition are included in the Company’s
statements of operation for the year ended December 31