Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 84

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 84
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 unless otherwise approved by Salem Five Cents, being less than 90 days from the date of
invoice not subject to any prior assignment, claim, lien, or security interest, not subject to set-off, credit, allowance or adjustment
by the account debtor, arose in the ordinary course of the Company’s business, not an intercompany obligation, not subject to notice
of bankruptcy or insolvency of the account debtor, not owed by an account debtor whose principal place of business was outside the United
States, not a government account, not be evidenced by promissory notes, and not one of the accounts owed by an account debtor 25% or
more of whose accounts were 90 or more days past invoice date; or otherwise not deemed acceptable by Salem Five Cents in accordance with
its normal credit policies. “Eligible Inventory” was defined as all finished goods, work in progress and raw materials and
component parts of inventory owned by the Company. Eligible Inventory did not include any inventory held on consignment or not otherwise
owned by the Company; any inventory which had been returned by a customer or was damaged or subject to any legal encumbrances other than
a first priority security interest held by the Company; any inventory which was not in the possession of the Company; any inventory which
was held by the Company on property leased by the Company unless Salem Five Cents had received a Landlord’s Waiver and Consent
from the lessor of such property satisfactory to Salem Five Cents; any inventory which was not located within the United States; any
inventory which Salem Five Cents reasonably deemed to be obsolete or non-marketable; and any inventory not subject to a first priority
fully perfected lien held by Salem Five Cents.

The Revolving Line of Credit was subject to interest
at the prime rate plus 0.5% per annum. The Company was required to repay interest on the Revolving Line of Credit proceeds on a monthly
basis. The Revolving Line of Credit continued indefinitely, subject to Salem Five Cents’ demand rights and the Company’s
ongoing affirmative and other obligations under the Loan Documents, as summarized below.

34

The Company could freely draw upon the Revolving
Line of Credit subject to Salem Five Cents’ right to demand complete repayment of the Revolving Line of Credit at any time. Late
payments were subject to a late payment charge of 5.0%. In the event of failure to repay the loan after Salem Five Cents made demand
for