Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 83

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 83
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 that we had established a trading plan with B. Riley intended to qualify under Rule 10b-18. In May 2023,
we renewed the trading plan. The trading plan instructs B. Riley to repurchase shares of common stock for our account in accordance with
Rule 10b-18 and our instructions. Repurchases under the trading plan may continue until the trading plan terminates in June 2024 unless
terminated earlier or extended.

As of March 31, 2024, we had repurchased
a total of 1,815,166 shares of common stock for total payments of approximately $3.4 million, and approximately $6.6 million remained
available under the stock repurchase program for future stock repurchases. During the three months ended March 31, 2024, we did not repurchase
any shares.

Debt

On November 22, 2021,
we entered into the Initial Loan Agreement with Salem Five Cents, for the Revolving Line of Credit, consisting of aggregate loans of
up to $7.0 million, evidenced by the Demand Note. The Revolving Line of Credit and the Demand Note were secured by a first priority security
interest in all assets and property of the Company, as provided in the Security Agreement, dated November 22, 2021, between Salem Five
Cents and the Company (the “Security Agreement” and together with the Initial Loan Agreement and the Demand Note, the “Loan
Documents”), and as described below. Under a Commercial Loan Modification Agreement, dated as of February 12, 2024, between Salem
Five Cents and the Company (the “Loan Modification Agreement”), certain terms of the Initial Loan Agreement were modified
as of February 12, 2024, as described below.

The amount available
under the Revolving Line of Credit was the lesser of $7.0 million or the sum of (x) eighty percent (80.0%) of the then-outstanding amount
of Eligible Accounts (as defined below), plus (y) fifty percent (50.0%) of Eligible Inventory (as defined below); minus one hundred (100.0%)
percent of the aggregate amount then drawn under the Revolving Line of Credit for the account of the Company. In addition, advances based
upon Eligible Inventory were required to be capped at all times at $2.0 million. “Eligible Accounts” was defined as accounts
that meet a number of requirements, including,