Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 369

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 369
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 $853  

F-33

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Amounts due and paid to related
party

Transactions with Engage & Excel
Enterprises Inc.

Alan Chippindale, a member of the Company’s
board of directors, the chairman of the Compensation Committee, and a member of the Nominating and Corporate Governance Committee, is
the President of Engage & Excel Enterprises Inc. (“Engage & Excel”). The Company and Engage & Excel are parties
to a Buyer’s Agreement, dated June 25, 2020 (the “Buyer’s Agreement”). Under the Buyer’s Agreement, Engage
& Excel agreed to provide certain merger and acquisition, management and recruitment consulting services in connection with the Company’s
acquisition of the Wildman Imprints assets. The Company agreed to pay Engage & Excel a fee of $20 upon completion of a purchase and
sale agreement and two annual fees of 1.5% of gross margin less costs attributable to the acquisition. The Company has paid Engage &
Excel approximately $26 as of December 31, 2024.

Separately from the Buyer’s Agreement,
in 2023, the Company paid Engage & Excel approximately $18 for recruiting fees and $20 for consulting fees relating to the T R Miller
assets acquisition. The Company also agreed to pay Engage & Excel 1.5% of the contribution margin of the T R Miller assets for two
years, paid annually. The Company’s board of directors has determined that Mr. Chippindale remains eligible under Nasdaq rules to serve
as an “independent director” of the Company and as a member and chairman of the Compensation Committee and a member of the
Nominating and Corporate Governance Committee. Due to Mr. Chippindale’s indirect compensation under the agreement, the board has
determined that he is currently not eligible to be a member of our Audit Committee.

U.ADVERTISING:

The Company follows the policy of charging
the costs of advertising to expense as incurred. For the years ended December 31, 2024 and 2023, advertising costs amounted to $511 and
$418, respectively.

V.DEFINED PROFIT SHARING PLAN:

On January 1, 2023, the Company adopted
the Stran 401(k) Savings Plan (the “Plan”), which qualifies under