Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 180

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 180
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) following the G.A.P. Closing Date, two annual installment payments, consisting of (i) $180 within 45 days of the first anniversary of the G.A.P. Closing Date and (ii) $300 within 45 days of the second anniversary of the G.A.P. Closing Date; and (d) required earnout payments within a certain period after each of the first two anniversaries of the G.A.P. Closing Date, in an amount equal to 70% of annual Gross Profit (as defined in the G.A.P. Purchase Agreement) to the extent that Gross Profit during the immediately trailing 12-month period prior to the applicable G.A.P. Closing Date anniversary exceeded $1,500.

The G.A.P. Purchase Price was approximately $ 1,981, as detailed below.

Additionally, the Company issued restricted shares of common stock on the G.A.P. Closing Date in an amount equal to the quotient of $ 100divided by the closing price of the common stock at the close of trading on the date of the public announcement of the G.A.P. Purchase Agreement, which were determined to be post-combination expense as they were subject to forfeiture under certain conditions resulting in the termination of continuous employment during the vesting period, and therefore excluded from the G.A.P Purchase Price.

F-26 STRAN & COMPANY, INC.
NOTES TO THE RESTATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

The G.A.P. Acquisition was accounted for as a business combination in accordance with U.S. GAAP, with the Company as the accounting acquirer. Under this method of accounting, the G.A.P. Acquired Assets are recorded at estimated fair value as of the G.A.P. Closing Date. The excess of the purchase price over the estimated fair value of the net assets acquired, if applicable, is recognized as goodwill.

|                                            |     | As       
 Reported |       |     | Adjustment |        |   |     | As       
 Restated |       |
|:-------------------------------------------|:----|:---------|------:|:----|:-----------|-------:|:--|:----|:---------|------:|
| Cash                                       |     | $        | 1,511 |     | $          | (1,011 | ) |     | $        |   500 |
| Cash adjustment for working capital        |     |          |     — |     |            |    920 |   |     |