Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1254

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1254
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,000 at December 31, 2022, and $3,500,000 at December 31, 2023.

49

Following the date of the Loan Modification Agreement,
the Revolving Line of Credit was no longer subject to the Company’s compliance with the Debt Service Coverage Ratio and the Minimum
Net Worth terms described above. Instead, the Company was required to meet the following financial requirements:

●The Company was required to maintain a “Minimum Interest Coverage”
of 1.25:1, tested for fiscal year ending December 31, 2024 only, and defined as follows: EBITDA (as defined below), divided by cash interest
payments made on all debt. “EBITDA” was defined as the trailing year’s total of net income before total interest expense,
tax expense, and depreciation and amortization expense. EBITDA was required to be adjusted for extraordinary and/or non-cash items as
defined in accordance with U.S. GAAP.

●The Company was required to maintain a “Minimum Debt Service Coverage
Ratio” of 1.20:1, tested annually beginning with the fiscal year ending December 31, 2025, defined as follows: EBITDA, less cash
taxes, distributions, dividends, stockholder withdrawals in any form, and unfinanced capital expenditures (as defined below), divided
by all scheduled principal payments on all debt, plus cash interest payments made on all debt, plus cash payments made on contingent earn-out
liabilities. “Unfinanced capital expenditures” was defined as the current fiscal-year-end net fixed assets, plus current fiscal-year-end
depreciation, less prior fiscal-year-end net fixed assets, less the long-term debt increase.

●The Company’s “Ratio of Debt to Tangible Net Worth” was
required not to exceed 1.50:1, tested at financial year-end, defined as total liabilities divided by “tangible net worth,”
defined as total assets, less total liabilities, less intangible assets and amounts due from stockholder/related parties.

●The Company was required to maintain a “Minimum Liquidity” of
$7.5 million at all times, defined as cash and short-term investments, less rewards program liabilities.

The Company
also could not incur any additional indebtedness, secured or unsecured, except in the ordinary course of business; make loans or advances
to others or guarantee others’ obligations except for certain ordinary advances to employees or ordinary customer credit terms;
make investments;