Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 34

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 adjustments, as described below, at and following the Closing (as defined below), including the payment
at the Closing of $150 to Warson Capital Partners, LLC, an investment banking firm retained by Bangarang, for its fees and expenses with
respect to the Bangarang Transaction, including the marketing for sale of the Bangarang Assets (the “Transaction Expense Payment”).  

As a result of the Closing, the Company
indirectly acquired substantially all of the assets of Bangarang, including all of the equity of Gander Group Louisiana, LLC, a Louisiana
limited liability company (“GGLA”), which will be a wholly-owned subsidiary of the Purchaser.

The Company has not completed the
purchase price allocation of this acquisition prior to the issuance of these financial statements, and an estimate of the financial effect
of the transaction cannot be made. All other business combination disclosures are not available due to the proximity of the acquisition
to the issuance of these financial statements.

Factoring Arrangement and Termination
of Revolving Line of Credit

On August 23, 2024, Stran Loyalty
Solutions entered into a factoring arrangement with a third party to provide accounts receivable financing to Stran Loyalty Solutions.
In connection with the factoring arrangement, the Company provided a secured guarantee of Stran Loyalty Solutions’ obligations
under the factoring arrangement. Prior to this arrangement, the Company had been a party to the Revolving Demand Line of Credit Loan
Agreement, dated as of November 22, 2021, between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem
Five Cents”), as amended by the Commercial Loan Modification Agreement, dated as of February 12, 2024, between the Company and
Salem Five Cents (the “Loan Agreement”), and the Revolving Demand Line of Credit Note, dated November 22, 2021, by the Company
in favor of Salem Five Cents (the “Demand Note”). The Loan Agreement and the Demand Note provided for a secured revolving
loan facility in an aggregate principal amount of up to $7,000 (the “Revolving Line of Credit”). In discussions with
Salem Five Cents prior to the establishment of the factoring arrangement, Salem Five Cents indicated that it would terminate the Revolving
Line of Credit because of a policy which prohibited it from agreeing to subordination of its security interest in the Company’s
assets.

Accordingly,