Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 385

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 385
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 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.

●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 assets. After the
date of the Loan Modification Agreement, any future contingent earn-out obligations were required to be subordinated to the Loan Documents.

In connection
with the Initial Loan Agreement, on November 22, 2021, the Company, Salem Five Cents and Harte Hanks Response Management/ Boston, Inc.
(the “Warehouse Provider”), the lessor of certain warehouse facilities to the Company, executed a Warehouseman’s Waiver
in favor of Salem Five Cents (the “Warehouseman’s Waiver”). Under the Warehouseman’s Waiver, the Warehouse Provider
disclaimed any interest in the property of the Company stored on the premises (the “Collateral”), and agreed not to interfere
with Salem Five Cents’ enforcement of its rights in the Collateral. The Warehouse Provider further agreed to provide notice to Salem
Five Cents of any default by the Company of its obligations as to the Warehouse Provider, and to give Salem Five Cents at least 30 days
to exercise its rights, which period could be extended by Salem Five Cents up to 60 days upon its payment of the per-diem rental amount.
After that period