Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 245

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 245
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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 $23 as of March 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 has paid Engage & Excel for consulting services $5 as of March 31, 2024. 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.

R.ADVERTISING:

The Company follows the policy of
charging the costs of advertising to expense as incurred. For the three months ended March 31, 2024 and 2023, advertising costs amounted
to $105 and $172, respectively.

25

S.SUBSEQUENT EVENTS:

Completion of Bangarang Acquisition:

On August 23, 2024, Stran Loyalty
Solutions, LLC, a Nevada limited liability company (the “Purchaser” or “Stran Loyalty Solutions”), a wholly-owned
subsidiary of the Company, entered into a Secured Party Sale Agreement