Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 185

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 185
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--------------------------------------|:----|:-----------|----:|:--|
| Cash                                  |     | $          |  14 |   |
| Accounts receivable                   |     |            | 344 |   |
| Customer relationships                |     |            | 400 |   |
| Goodwill                              |     |            |  90 |   |
| Accounts payable and accrued expenses |     |            | (18 | ) |
| Total consideration                   |     | $          | 830 |   |

The Premier NYC 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 $ 0is expected to be deductible for tax purposes.

Pro forma disclosure for the Premier Acquisition

The financial results of this acquisition are included in the Company’s statements of operations from the date of acquisition. As a privately held company, Premier’s historic cash basis financial statements were unaudited and not prepared under US GAAP, including, but not limited to, differences in revenue recognition. The disclosure of supplemental pro forma financial information required under ASC 805 for a public business entity has been deemed impracticableby management due to these reasons.

T.R. Miller Acquisition

On June 1, 2023 (the “T R Miller Closing Date”), the Company completed its acquisition (the “T R Miller Acquisition”) of substantially all of the assets of T R Miller (the “T R Miller Acquired Assets”), pursuant to the Asset Purchase Agreement, date as of January 25, 2023 (the “T R Miller Purchase Agreement”), among the Company, T R Miller, and Thomas R Miller (the “T R Miller Stockholder”).

The aggregate consideration required to be paid by to T R Miller for the purchase of the T R Miller Acquired Assets was (a) $ 1,000payable in cash on the T R Miller Closing Date; (b) an amount equal to the cost basis of Inventory (as defined in the T R Miller Purchase Agreement); (c) four annual installment payments due on each anniversary of the T R Miller Closing Date, equal to $ 400, $ 300, $ 200, and $ 200, respectively; (d) four annual earn-out payments equal to (i) 45% of the annual Gross Profit (as defined in the T R Miller Purchase Agreement) during the immediately trailing 12