Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 255

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 255
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 of Gander Group
Louisiana, LLC, a Louisiana limited liability company, which became a wholly-owned subsidiary of Stran Loyalty Solutions.

15

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

In addition, Stran Loyalty Solutions
entered into a Release Agreement, dated as of August 23, 2024, between Gander Group and Stran Loyalty Solutions (the “Release Agreement”).
Under the Release Agreement, Gander Group granted a full and complete waiver and release of Stran Loyalty Solutions and its affiliates
of any non-competition, non-solicitation, 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.

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 Gander Group 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