Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2759

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 16
Chunk 2759
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itation, or similar restrictive covenants of any parties owed to Gander Group or any of its affiliates
and Stran was required to pay an additional $370 to Gander Group.

F-19

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The Sale Agreement and the Release
Agreement included provisions for indemnification, reimbursement for returned items, handling of assets and liabilities during Gander
Group’s wind-down, and certain other matters.

    Cash 
    $1,099 
  
    Gander release agreement payments 
     370 
  
    Total consideration 
    $1,469 

The following table summarizes the
purchase price allocations relating to the Bangarang Acquisition:

    Accounts receivable 
    $1,717 
  
    Prepaid expenses and other assets 
     946 
  
    Inventory 
     939 
  
    Customer relationships 
     1,458 
  
    Goodwill 
     2,542 
  
    Trade name 
     654 
  
    Other long-term assets 
     58 
  
    Accounts payable and accrued expenses 
     (4,698)
  
    Customer deposits 
     (2,147)
  
    Total consideration 
    $1,469 

The
Gander Group Assets were valued using a combination of a multi-period excess earnings methodology, a form of a discounted cash
flow approach, and a relief from royalty methodology, a form of a present value of cash flows approach. The $1,717 balance of accounts receivable is the fair value of accounts receivable, net of amounts that are expected to be collected as
of the acquisition date. The
goodwill represents the excess fair value after the allocation of intangibles, of which approximately $2,542 is expected to be deductible
for tax purposes.

The
Company incurred approximately $435 of acquisition related transaction costs in conjunction
with the Gander Group Acquisition.

Pro forma disclosure for the Gander Group Acquisition

The following unaudited pro forma financial
information reflects the consolidated results of operations of the Company for the year ended December 31, 2024, as if the Bangarang Acquisition
had taken place on January 1, 2024. The financial results of the Bangarang Acquisition are included in the Company’s statements
of operation from the Closing Date through December 31, 2024. The pro forma financial information is