Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 06, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | STRAN & COMPANY, INC. | |
Trading Symbol | STRN | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,987,951 | |
Amendment Flag | false | |
Entity Central Index Key | 0001872525 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-41038 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 04-3297200 | |
Entity Address, Address Line One | 2 Heritage Drive | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Quincy | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02171 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
City Area Code | 800 | |
Local Phone Number | 833-3309 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 797,428 | $ 647,235 |
Accounts Receivable | 7,266,366 | 5,679,580 |
Deferred IPO Costs | 459,638 | |
Due From Wildman | 108,476 | |
Inventory | 3,911,474 | 2,499,049 |
Prepaid Corporate Taxes | 14,645 | |
Prepaid Expenses | 197,606 | 122,516 |
Security Deposit | 355,406 | 324,927 |
Total Current Assets | 13,111,039 | 9,273,307 |
PROPERTY AND EQUIPMENT, NET: | 599,952 | 449,972 |
OTHER ASSETS: | ||
Intangible Asset - Customer List, Net | 1,983,896 | 2,216,128 |
Due From Stockholder | 6,748 | |
Right of Use Asset - Office Leases | 1,169,489 | 1,358,517 |
Total Other Assets | 3,153,385 | 3,581,393 |
Total Assets | 16,864,376 | 13,304,672 |
CURRENT LIABILITIES: | ||
Note Payable - Line of Credit | 3,500,000 | 1,650,000 |
Current Portion of Long-Term Debt | 3,858 | 153,133 |
Current Portion of Wildman Contingent Earn-Out Liability | 874,882 | 402,730 |
Current Obligation under Right of Use Asset - Office Leases | 305,438 | 299,765 |
Accounts Payable and Accrued Expenses | 5,803,939 | 3,267,933 |
Accrued Payroll and Related | 914,510 | 1,021,971 |
Corporate Income Taxes Payable | 231,980 | |
Deferred Income Taxes | 159,838 | |
Due to Stockholder | 500,000 | |
Unearned Revenue | 620,842 | 564,227 |
Rewards Program Liability | 43,878 | 173,270 |
Sales Tax Payable | 96,014 | 73,010 |
Note Payable - Wildman | 162,358 | 162,358 |
Total Current Liabilities | 12,985,557 | 8,000,377 |
LONG-TERM LIABILITIES: | ||
Long-Term Debt, Net of Current Portion | 146,042 | 766,829 |
Long-Term Wildman Contingent Earn-Out Liability | 976,078 | 1,850,960 |
Long-Term Obligation under Right of Use Asset - Office Leases | 864,050 | 1,058,752 |
Total Long- Term Liabilities | 1,986,170 | 3,676,541 |
STOCKHOLDER'S EQUITY: | ||
Common Stock, $.0001 Par Value; 300,000,000 Shares Authorized, 10,000,000 Shares Issued and Outstanding | 100 | 100 |
Retained Earnings | 1,892,549 | 1,627,654 |
Total Stockholder's Equity | 1,892,649 | 1,627,754 |
Total Liabilities & Stockholder's Equity | $ 16,864,376 | $ 13,304,672 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 10,000,000 | 10,000,000 |
Common stock, shares outstanding | 10,000,000 | 10,000,000 |
Statements of Earnings (Loss) a
Statements of Earnings (Loss) and Retained Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
SALES | $ 10,947,724 | $ 8,363,825 | $ 27,075,116 | $ 28,462,481 |
COST OF SALES: | ||||
Purchases | 6,362,217 | 5,813,427 | 16,435,550 | 18,460,993 |
Freight | 860,813 | 385,262 | 2,478,457 | 1,284,732 |
Total Cost of Sales | 7,223,030 | 6,198,689 | 18,914,007 | 19,745,725 |
GROSS PROFIT | 3,724,694 | 2,165,136 | 8,161,109 | 8,716,756 |
OPERATING EXPENSES: | ||||
Bad Debt Expense | 11,926 | 32,000 | 93,971 | 47,899 |
General and Administrative Expenses | 2,677,175 | 2,047,478 | 8,239,161 | 6,667,643 |
Total Operating Expenses | 2,689,101 | 2,079,478 | 8,333,132 | 6,715,542 |
EARNINGS (LOSS) FROM OPERATIONS | 1,035,593 | 85,658 | (172,023) | 2,001,214 |
OTHER INCOME AND (EXPENSE): | ||||
Other Income | 6,378 | 776,440 | 10,000 | |
Interest Expense | (26,260) | (66,066) | (41,619) | |
Total Other Income and Expenses | (19,882) | 710,374 | (31,619) | |
EARNINGS (LOSS) BEFORE INCOME TAXES | 1,015,711 | 85,658 | 538,351 | 1,969,595 |
Current: | ||||
State | 88,725 | 76,338 | 118,300 | |
Federal | 3,730 | 227,952 | 37,281 | 303,936 |
Total Current | 3,730 | 316,677 | 113,619 | 422,236 |
Deferred: | ||||
State | 78,800 | 44,800 | ||
Federal | 209,313 | 115,038 | ||
Total Deferred | 288,113 | 159,838 | ||
Total Income Taxes | 291,843 | 316,677 | 273,457 | 422,236 |
NET EARNINGS (LOSS) | 723,868 | (231,019) | 264,894 | 1,547,359 |
RETAINED EARNINGS, BEGINNING | 1,168,681 | 2,376,911 | 1,627,655 | 598,533 |
RETAINED EARNINGS, ENDING | $ 1,892,549 | $ 2,145,892 | $ 1,892,549 | $ 2,145,892 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Retained Earnings | Total |
Balance at Dec. 31, 2019 | $ 100 | $ 598,533 | $ 598,633 |
Balance (in Shares) at Dec. 31, 2019 | 10,000,000 | ||
Net Earnings | 707,385 | 707,385 | |
Balance at Mar. 31, 2020 | $ 100 | 1,305,918 | 1,306,018 |
Balance (in Shares) at Mar. 31, 2020 | 10,000,000 | ||
Net Earnings | 1,070,993 | 1,070,993 | |
Balance at Jun. 30, 2020 | $ 100 | 2,376,911 | 2,377,011 |
Balance (in Shares) at Jun. 30, 2020 | 10,000,000 | ||
Net Earnings | (231,019) | (231,019) | |
Balance at Sep. 30, 2020 | $ 100 | 2,145,892 | 2,145,992 |
Balance (in Shares) at Sep. 30, 2020 | 10,000,000 | ||
Balance at Dec. 31, 2020 | $ 100 | 1,627,655 | 1,627,755 |
Balance (in Shares) at Dec. 31, 2020 | 10,000,000 | ||
Net Earnings | (290,085) | (290,085) | |
Balance at Mar. 31, 2021 | $ 100 | 1,337,570 | 1,337,670 |
Balance (in Shares) at Mar. 31, 2021 | 10,000,000 | ||
Net Earnings | (168,889) | (168,889) | |
Balance at Jun. 30, 2021 | $ 100 | 1,168,681 | 1,168,781 |
Balance (in Shares) at Jun. 30, 2021 | 10,000,000 | ||
Net Earnings | 723,868 | 723,868 | |
Balance at Sep. 30, 2021 | $ 100 | $ 1,892,549 | $ 1,892,649 |
Balance (in Shares) at Sep. 30, 2021 | 10,000,000 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Earnings | $ 264,894 | $ 1,547,359 |
Deferred Income Taxes | 159,838 | |
Depreciation and Amortization | 333,495 | 135,354 |
Gain on Extinguishment of Debt | (770,061) | |
Intangible Asset - Customer List Impairment | 63,204 | |
Reduction in Wildman Earn-Out Payment | (402,730) | |
(Increase) Decrease In: | ||
Accounts Receivable | (1,586,786) | 1,976,005 |
Deferred IPO Costs | (459,638) | |
Due From Affiliate | 138,561 | |
Due From Wildman | (108,476) | |
Inventory | (1,412,425) | (436,243) |
Prepaid Expenses | (89,735) | 309,416 |
Security Deposit | (30,479) | (528,613) |
Increase (Decrease) In: | ||
Accounts Payable and Accrued Expenses | 2,536,006 | (1,764,456) |
Accrued Payroll and Related | (107,461) | 337,093 |
Corporate Income Taxes Payable | (231,980) | 295,135 |
Unearned Revenue | 56,615 | (344,093) |
Rewards Program Liability | (129,392) | (2,003,500) |
Sales Tax Payable | 23,004 | 22,230 |
Net cash provided by operating activities | (1,892,107) | (315,752) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property and Equipment | (314,448) | (99,728) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Note Payable - Line of Credit | 4,225,000 | 3,030,000 |
Long-Term Debt | 919,962 | |
Note Payable - Line of Credit | (2,375,000) | (5,180,000) |
Increase in Due To/From Stockholder | 506,748 | (38,207) |
Net cash provided by financing activities | 2,356,748 | (1,268,245) |
NET INCREASE (DECREASE) IN CASH | 150,193 | (1,683,725) |
CASH - BEGINNING | 647,235 | 2,438,260 |
CASH - ENDING | 797,428 | 754,535 |
Cash Paid During The Period For: | ||
Interest | 66,066 | 41,619 |
Income Taxes | 360,906 | 127,101 |
Schedule of Noncash Investing and Financing Transactions: | ||
Cost of Intangible Asset - Customer List | 2,253,690 | |
Wildman Contingent Earn-Out | (2,253,690) | |
Cash Used for Purchase of Intangible Asset - Customer List | ||
Cost of Wildman Inventory | 649,433 | |
Note Payable - Wildman | (162,358) | |
Cash Used for Purchase Wildman Inventory | $ 487,075 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Organization - Stran & Company, Inc., (the Company) was incorporated under the laws of the Commonwealth of Massachusetts and commenced operations on November 17, 1995. The Company re-incorporated under the laws of the State of Nevada on May 24, 2021. 2. Operations - The Company is an outsourced marketing solutions provider that sells branded products to customers. The Company purchases products and branding through various third-party manufacturers and decorators and resells the finished goods to customers. In addition to selling branded products, the Company offers clients custom sourcing capabilities; a flexible and customizable e-commerce solution for promoting branded merchandise and other promotional products, managing promotional loyalty and incentives, print collateral, and event assets, order and inventory management, and designing and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings; creative and merchandising services; warehousing/fulfillment and distribution; print-on-demand; kitting; point of sale displays; and loyalty and incentive programs. 3. Method of Accounting – The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. (“U.S. GAAP”). 4. Cash and Cash Equivalents - For purposes of the statement of cash flows, the Company considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. 5. Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable and deposits in excess of federally insured limits. These risks are managed by performing ongoing credit evaluations of customers’ financial condition and by maintaining all deposits in high quality financial institutions. 6. Inventory – Inventory consists of finished goods (branded products) and goods in process (un-branded products awaiting decoration). All inventory is stated at the lower of cost (first-in, first-out method) or market value. 7. Property and Equipment - Property and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred whereas major betterments are capitalized. Depreciation is provided using straight-line and accelerated methods over five years. 8. Fair Value of Financial Instruments - The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable. The recorded values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable approximate their fair values based on their short-term nature. 9. Revenue Recognition - In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which is aimed at creating common revenue recognition guidance for GAAP and the International Financial Reporting Standards ("IFRS"). This new guidance provides a comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue guidance issued by the FASB. ASU 2014-09 also requires both qualitative and quantitative disclosures, including descriptions of performance obligations. On January 1, 2019, the Company adopted ASU 2014-09 and all related amendments ("ASC 606") and applied its provisions to all uncompleted contracts using the modified retrospective basis. The application of this new revenue recognition standard resulted in no adjustment to the opening balance of retained earnings. Performance Obligations - Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the company determines the customer has obtained control over the promised good or service. The amount of revenue recognized reflects the consideration of which the Company expects to be entitled in exchange for the promised goods or services. The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Product Sales Reward Card Program The following table disaggregates the Company's revenue based on the timing of satisfaction of performance obligations for the nine months ended September 30,: 2021 2020 Performance Obligations Satisfied at a Point in Time $ 27,075,116 $ 28,462,481 Performance Obligations Satisfied Over Time - - Total Revenue $ 27,075,116 $ 28,462,481 10. Freight - The Company includes freight charges as a component of cost of goods sold. 11. Uncertainty in Income and Other Taxes - The Company adopted the standards for Accounting for Uncertainty in Income Taxes 12. Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are provided for differences between the basis of assets and liabilities for financial statements and income tax purposes. The Company has historically utilized accelerated tax depreciation to minimize federal income taxes. 13. Sales Tax - Sales tax collected from customers is recorded as a liability, pending remittance to the taxing jurisdiction. Consequently, sales taxes have been excluded from revenues and costs. The Company remits sales, use, and GST taxes to Massachusetts, other state jurisdictions, and Canada, respectively. 14. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts, Net | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Loss [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS, NET | B. ALLOWANCE FOR DOUBTFUL ACCOUNTS, NET The Company uses the allowance method to account for uncollectible accounts receivable balances. Under the allowance method, an estimate of uncollectible customer balances is made based on the Company’s prior history and other factors such as credit quality of the customer and economic conditions of the market. Based on these factors, at September 30, 2021 and December 31, 2020, there was an allowance for doubtful accounts of $232,847 and $150,847, respectively. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | C. INVENTORY Inventory consists of the following as of: September 30, December 31, Finished Goods (branded products) $ 2,773,084 $ 2,271,982 Goods in Process (un-branded products) 1,138,390 227,067 $ 3,911,474 $ 2,499,049 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | D. PROPERTY AND EQUIPMENT : Property and Equipment consists of the following as of: September 30, December 31, Leasehold Improvements $ 5,664 $ 5,664 Office Furniture and Equipment 386,297 342,692 Software 925,183 654,340 Transportation Equipment 62,424 62,424 1,379,568 1,065,120 Accumulated Depreciation (779,616 ) (615,148 ) $ 599,952 $ 449,972 |
Due from Stockholder
Due from Stockholder | 9 Months Ended |
Sep. 30, 2021 | |
Due from Stockholder [Abstract] | |
DUE FROM STOCKHOLDER | E. DUE FROM STOCKHOLDER : The amount due from stockholder is unsecured and non-interest bearing. There is no formal repayment plan and, accordingly, this amount has been recorded as long-term. At September 30, 2021 and December 31, 2020, the amounts due from stockholder were $0 and $6,748, respectively. |
Note Payable - Line of Credit
Note Payable - Line of Credit | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - LINE OF CREDIT | F. NOTE PAYABLE - LINE OF CREDIT : The Company has a $3,500,000 line of credit with Bank of America at September 30, 2021 and December 31, 2020, borrowings on this line of credit amounted to $3,500,000 and $1,650,000, respectively. The line bears interest at the LIBOR Daily Floating Rate plus 2.75%. At September 30, 2021 and December 31, 2020, interest rates were 4.20%. The line is reviewed annually and is due on demand. This line of credit is secured by substantially all assets of the Company. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | G. LONG-TERM DEBT Long-Term Debt consists of the following at September 30,: 2021 2020 1.00% Loan Payable - PPP Loan - Bank of America: $ - $ 770,062 3.75% Loan Payable - EIDL Loan - SBA: 149,900 149,900 149,900 919,962 Current Portion (3,858 ) (153,133 ) Long-Term Debt $ 146,042 $ 766,829 On April 15, 2020, the Company received loan proceeds from Bank of America in the amount of approximately $770,062 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times the average qualifying monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower is unable to re-hire to the same employment level on or before December 31, 2020, reduces salaries during the covered period, or uses more than forty percent of the money spent on non-employment expenses. The unforgiven portion of the PPP loan is payable over five years at an interest rate of 1% with a deferral of payments for the first six months. The Company received forgiveness by the U.S. Small Business Administration (SBA) of the PPP loan in full, effective June 24, 2021. The following is a schedule by years of aggregate maturities of indebtedness at September 30, 2021: 2022 $ 3,858 2023 3,441 2024 3,571 2025 3,704 2026 3,843 Thereafter 131,483 $ 149,900 |
Contingent Earn-Out Liability
Contingent Earn-Out Liability | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT EARN-OUT LIABILITY | H. contingent earn-out liability : In connection with the asset acquisition, as discussed in Note M, the customer list was purchased using a Contingent Earn-Out Calculation. The purchase price is equal to fifteen percent (15%) of the gross profit earned from the sale of product to the customer list for year 1 and thirty percent (30%) for years 2 and 3. Payments are due on the anniversary date of the purchase. Based upon historical information, management has estimated the fair market value of these payments to be $2,253,690 and has been recorded as Intangible Asset – Customer List and the related Contingent Earn-Out Liability at this amount. At September 30, 2021 and December 31, 2020, the Company’s evaluation of the intangible asset has resulted in accumulated impairment of $69,584 and $0, respectively. |
Unearned Revenue
Unearned Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
UNEARNED REVENUE | I. UNearned revenue : Unearned revenue includes customer deposits and deferred revenue which represent prepayments from customers. At September 30, 2021 and December 31, 2020, the Company had unearned revenue totaling $620,842 and $564,227, respectively. Nine Months Ended Twelve Months Ended Beginning Balance $ 564,227 $ 362,951 Revenue recognized (27,075,116 ) (37,752,173 ) Amounts collected or invoiced 27,131,731 37,953,449 Ending Balance $ 620,842 $ 564,227 |
Reward Card Program Liability
Reward Card Program Liability | 9 Months Ended |
Sep. 30, 2021 | |
Reward Card Program Liability [Abstract] | |
REWARD CARD PROGRAM LIABILITY | J. reward card program liability : The Company manages reward card programs for customers. Under this program, the Company receives cash and simultaneously records a liability for the total amount received. These accounts are adjusted on a periodic basis as reward cards are funded or reduced at the direction of the customers. At September 30, 2021 and December 31, 2020, the company had deposits totaling $43,878 and $173,270, respectively. |
Due to Stockholder
Due to Stockholder | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Notes Disclosure [Abstract] | |
DUE TO STOCKHOLDER | K. DUE TO STOCKHOLDER : The amount due to stockholder is unsecured and accrues interest at 5% compounding monthly. There is no formal repayment plan and, accordingly, this amount has been recorded as long-term. At September 30, 2021 and December 31, 2020, the amounts due to stockholder were $500,000 and $0, respectively. As of September 30, 2021 and December 31, 2020 interest accrued on the note amounted to $1,096 and $0, respectively. |
Note Payable - Wildman
Note Payable - Wildman | 9 Months Ended |
Sep. 30, 2021 | |
Note Payable [Abstract] | |
NOTE PAYABLE - WILDMAN | L. Note Payable - wildman : In connection with the asset acquisition as discussed in Note M, the Company had an amount due to the seller of $162,358 for the inventory purchased. This amount accrues no interest, and is to be paid “as used” on a quarterly basis through the three year earn-out period as discussed in Note H. At September 30, 2021, the note totaled $162,358. The Company anticipates that the note will be paid in full within the next twelve months, accordingly the note payable has been classified as current on the balance sheet as of September 30, 2021. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Abstract] | |
ACQUISITION | M. ACquisition : On August 24, 2020 the Company entered into an asset purchase agreement to acquire inventory, select fixed assets, and a customer list from Wildman Business Group, LLC (WBG). In accordance with Financial Accounting Standards Board (“FASB” ASC 805), “Business Combinations”, the acquisition method of accounting is used and recognition of the assets acquired is at fair value as of the acquisition dates. All acquisition costs are expensed as incurred. Amortization of the acquired customer list is straight-line for ten years. The consideration paid has been allocated to the assets acquired based on their estimated fair values at the acquisition date. The estimate of fair values for tangible assets acquired were agreed to by both buyer and seller. The aggregate purchase price was $2,937,222. As of September 30, 2021, the asset has been impaired in the amount of $69,584. Fair Value of Identifiable Assets Acquired: Inventory $ 649,433 Property and Equipment 34,099 Intangible - Customer List 2,253,690 $ 2,937,222 Consideration Paid: Cash $ 521,174 Note Payable - Wildman 162,358 Wildman Contingent Earn-Out Liability 2,253,690 $ 2,937,222 |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Lease Obligation [Abstract] | |
LEASE OBLIGATIONS | N. LEASE OBLIGATIONS : The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The company is a lessee in a non-cancellable operating lease for office space. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The company recognizes a lease liability and right of use (ROU) asset at the commencement date of the lease. The lease liability is initially and subsequently recognized based on the present value of its future payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. The discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of the Company's lease are not readily determinable and accordingly, the Company used their incremental borrowing rate based on the information available at the commencement date of the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received, and any impairment recognized. Lease costs for lease payments is recognized on a straight-line basis over the lease term. The Company has entered into operating lease agreements for its office space. The following is a schedule by years of future minimum lease payments at September 30, 2021: 2022 $ 343,503 2023 349,412 2024 323,584 2025 325,776 2026 - $ 1,342,275 Rent expense for the nine months ended September 30, 2021 and 2020 totaled $297,105 and $311,430, respectively. |
Capital Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2021 | |
Capital Structure [Abstract] | |
CAPITAL STRUCTURE | O. CAPITAL STRUCTURE On May 24, 2021 the Company authorized a capital stock change from 200,000 shares of common stock, $0.01 par value, to 350,000,000 shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of “blank check” preferred stock, par value $0.0001 per share. At the same time, the Company also completed a 100,000 100 |
Advertising
Advertising | 9 Months Ended |
Sep. 30, 2021 | |
Advertising [Abstract] | |
ADVERTISING | P. ADVERTISING : The Company follows the policy of charging the costs of advertising to expense as incurred. For the nine months ended September 30, 2021 and 2020, advertising costs amounted to $99,241 and $56,771, respectively. |
Major Customers
Major Customers | 9 Months Ended |
Sep. 30, 2021 | |
Major Customer [Abstract] | |
MAJOR CUSTOMERS | Q. MAJOR CUSTOMERs For the nine months ended September 30, 2021, the Company had no major customers. For the nine months ended September 30, 2020, the Company had two major customers to which sales accounted for approximately 44% of the Company’s revenues. The Company had accounts receivable from these customers amounting to 28% of the total accounts receivable balance. |
Employee Benefit Program
Employee Benefit Program | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PROGRAM | R. EMPLOYEE BENEFIT PROGRAM : Effective September 1998, the Company has a SIMPLE IRA plan (Savings Incentive Match Plan for Employees) covering all employees who meet certain requirements. Each employee is 100% vested in their contribution and the company match. The Company makes a matching contribution on a semi-monthly basis based on the contribution the employee makes and the amount of compensation earned during that pay period. Employer contributions accrued and charged to this plan for the nine months ended September 30, 2021 and 2020 amounted to $123,409 and $81,622, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | S. SUBSEQUENT EVENTS : Management has evaluated events occurring after the balance sheet date through December 7, 2021, the date in which the financial statements were available to be issued. On November 12, 2021, the closing of the Offering was completed. At the closing, the underwriters fully exercised their option to purchase an additional 650,602 shares of Common Stock and 650,602 Warrants. Therefore, the Company sold 4,987,951 shares of Common Stock and 4,987,951 Warrants for total gross proceeds of $20,699,996.65. After deducting the underwriting commission and expenses, the Company received net proceeds of approximately $18,747,317. On November 22, 2021, the Company entered into a secured revolving line of credit with Salem Five Bank permitting the Company to borrow up to $7,000,000, replacing the previous line of credit with Bank of America. The line bears interest at the Prime rate plus 0.50%. The line is reviewed annually and is due on demand. This line of credit is secured by substantially all assets of the Company. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization - Stran & Company, Inc., (the Company) was incorporated under the laws of the Commonwealth of Massachusetts and commenced operations on November 17, 1995. The Company re-incorporated under the laws of the State of Nevada on May 24, 2021. |
Operations | 2. Operations - The Company is an outsourced marketing solutions provider that sells branded products to customers. The Company purchases products and branding through various third-party manufacturers and decorators and resells the finished goods to customers. In addition to selling branded products, the Company offers clients custom sourcing capabilities; a flexible and customizable e-commerce solution for promoting branded merchandise and other promotional products, managing promotional loyalty and incentives, print collateral, and event assets, order and inventory management, and designing and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings; creative and merchandising services; warehousing/fulfillment and distribution; print-on-demand; kitting; point of sale displays; and loyalty and incentive programs. |
Method of Accounting | 3. Method of Accounting – The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. (“U.S. GAAP”). |
Cash and Cash Equivalents | 4. Cash and Cash Equivalents - For purposes of the statement of cash flows, the Company considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. |
Concentration of Credit Risk | 5. Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable and deposits in excess of federally insured limits. These risks are managed by performing ongoing credit evaluations of customers’ financial condition and by maintaining all deposits in high quality financial institutions. |
Inventory | 6. Inventory – Inventory consists of finished goods (branded products) and goods in process (un-branded products awaiting decoration). All inventory is stated at the lower of cost (first-in, first-out method) or market value. |
Property and Equipment | 7. Property and Equipment - Property and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred whereas major betterments are capitalized. Depreciation is provided using straight-line and accelerated methods over five years. |
Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments - The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable. The recorded values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and notes payable approximate their fair values based on their short-term nature. |
Revenue Recognition | 9. Revenue Recognition - In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which is aimed at creating common revenue recognition guidance for GAAP and the International Financial Reporting Standards ("IFRS"). This new guidance provides a comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue guidance issued by the FASB. ASU 2014-09 also requires both qualitative and quantitative disclosures, including descriptions of performance obligations. On January 1, 2019, the Company adopted ASU 2014-09 and all related amendments ("ASC 606") and applied its provisions to all uncompleted contracts using the modified retrospective basis. The application of this new revenue recognition standard resulted in no adjustment to the opening balance of retained earnings. Performance Obligations - Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the company determines the customer has obtained control over the promised good or service. The amount of revenue recognized reflects the consideration of which the Company expects to be entitled in exchange for the promised goods or services. The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Product Sales Reward Card Program The following table disaggregates the Company's revenue based on the timing of satisfaction of performance obligations for the nine months ended September 30,: 2021 2020 Performance Obligations Satisfied at a Point in Time $ 27,075,116 $ 28,462,481 Performance Obligations Satisfied Over Time - - Total Revenue $ 27,075,116 $ 28,462,481 |
Freight | 10. Freight - The Company includes freight charges as a component of cost of goods sold. |
Uncertainty in Income and Other Taxes | 11. Uncertainty in Income and Other Taxes - The Company adopted the standards for Accounting for Uncertainty in Income Taxes |
Income Taxes | 12. Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are provided for differences between the basis of assets and liabilities for financial statements and income tax purposes. The Company has historically utilized accelerated tax depreciation to minimize federal income taxes. |
Sales Tax | 13. Sales Tax - Sales tax collected from customers is recorded as a liability, pending remittance to the taxing jurisdiction. Consequently, sales taxes have been excluded from revenues and costs. The Company remits sales, use, and GST taxes to Massachusetts, other state jurisdictions, and Canada, respectively. |
Use of Estimates | 14. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of company’s revenue based on the timing of satisfaction of performance obligations | 2021 2020 Performance Obligations Satisfied at a Point in Time $ 27,075,116 $ 28,462,481 Performance Obligations Satisfied Over Time - - Total Revenue $ 27,075,116 $ 28,462,481 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | September 30, December 31, Finished Goods (branded products) $ 2,773,084 $ 2,271,982 Goods in Process (un-branded products) 1,138,390 227,067 $ 3,911,474 $ 2,499,049 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | September 30, December 31, Leasehold Improvements $ 5,664 $ 5,664 Office Furniture and Equipment 386,297 342,692 Software 925,183 654,340 Transportation Equipment 62,424 62,424 1,379,568 1,065,120 Accumulated Depreciation (779,616 ) (615,148 ) $ 599,952 $ 449,972 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | 2021 2020 1.00% Loan Payable - PPP Loan - Bank of America: $ - $ 770,062 3.75% Loan Payable - EIDL Loan - SBA: 149,900 149,900 149,900 919,962 Current Portion (3,858 ) (153,133 ) Long-Term Debt $ 146,042 $ 766,829 |
Schedule of aggregate maturities of indebtedness | 2022 $ 3,858 2023 3,441 2024 3,571 2025 3,704 2026 3,843 Thereafter 131,483 $ 149,900 |
Unearned Revenue (Tables)
Unearned Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of unearned revenue includes customer deposits and deferred revenue | Nine Months Ended Twelve Months Ended Beginning Balance $ 564,227 $ 362,951 Revenue recognized (27,075,116 ) (37,752,173 ) Amounts collected or invoiced 27,131,731 37,953,449 Ending Balance $ 620,842 $ 564,227 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Acquisition [Abstract] | |
Schedule of fair value assets | Fair Value of Identifiable Assets Acquired: Inventory $ 649,433 Property and Equipment 34,099 Intangible - Customer List 2,253,690 $ 2,937,222 Consideration Paid: Cash $ 521,174 Note Payable - Wildman 162,358 Wildman Contingent Earn-Out Liability 2,253,690 $ 2,937,222 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Lease Obligation [Abstract] | |
Schedule of future minimum lease payments | 2022 $ 343,503 2023 349,412 2024 323,584 2025 325,776 2026 - $ 1,342,275 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) - Schedule of company’s revenue based on the timing of satisfaction of performance obligations - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of company’s revenue based on the timing of satisfaction of performance obligations [Abstract] | ||
Performance Obligations Satisfied at a Point in Time | $ 27,075,116 | $ 28,462,481 |
Performance Obligations Satisfied Over Time | ||
Total Revenue | $ 27,075,116 | $ 28,462,481 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts, Net (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Allowance for Credit Loss [Abstract] | ||
Allowance for doubtful accounts | $ 232,847 | $ 150,847 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of inventory [Abstract] | ||
Finished Goods (branded products) | $ 2,773,084 | $ 2,271,982 |
Goods in Process (un-branded products) | 1,138,390 | 227,067 |
Inventory | $ 3,911,474 | $ 2,499,049 |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of property and equipment [Abstract] | ||
Leasehold Improvements | $ 5,664 | $ 5,664 |
Office Furniture and Equipment | 386,297 | 342,692 |
Software | 925,183 | 654,340 |
Transportation Equipment | 62,424 | 62,424 |
Property plant and equipment, Gross | 1,379,568 | 1,065,120 |
Accumulated Depreciation | (779,616) | (615,148) |
Property plant and equipment, Net | $ 599,952 | $ 449,972 |
Due from Stockholder (Details)
Due from Stockholder (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Stockholders' Equity Note [Abstract] | ||
Amounts due from stockholder | $ 0 | $ 6,748 |
Note Payable - Line of Credit (
Note Payable - Line of Credit (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Note Payable - Line of Credit (Details) [Line Items] | ||
Borrowing amount | $ 3,500,000 | $ 1,650,000 |
Line bears interest | 2.75% | |
Interest rate | 4.20% | 4.20% |
Bank of America [Member] | ||
Note Payable - Line of Credit (Details) [Line Items] | ||
Line of credit | $ 3,500,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Apr. 15, 2020 | Jun. 24, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Received from loan proceeds (in Dollars) | $ 770,062 | ||
Non employment expenses | 40.00% | ||
Loan payable | 5 years | ||
Interest rate | 1.00% |
Long-Term Debt (Details) - Sche
Long-Term Debt (Details) - Schedule of long-term debt - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 149,900 | $ 919,962 |
Current Portion | (3,858) | (153,133) |
Long-Term Debt | 146,042 | 766,829 |
PPP Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loan payable | 770,062 | |
EIDL Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loan payable | $ 149,900 | $ 149,900 |
Long-Term Debt (Details) - Sc_2
Long-Term Debt (Details) - Schedule of long-term debt (Parentheticals) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
PPP Loan [Member] | |
Debt Instrument [Line Items] | |
Monthly installments | $ 1,209 |
Loan payable, percentage | 1.00% |
EIDL Loan [Member] | |
Debt Instrument [Line Items] | |
Monthly installments | $ 731 |
Loan payable, percentage | 3.75% |
Long-Term Debt (Details) - Sc_3
Long-Term Debt (Details) - Schedule of aggregate maturities of indebtedness | Sep. 30, 2021USD ($) |
Schedule of aggregate maturities of indebtedness [Abstract] | |
2022 | $ 3,858 |
2023 | 3,441 |
2024 | 3,571 |
2025 | 3,704 |
2026 | 3,843 |
Thereafter | 131,483 |
Total | $ 149,900 |
Contingent Earn-Out Liability (
Contingent Earn-Out Liability (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Contingent Earn-Out Liability (Details) [Line Items] | ||
Fair market value payments | $ 2,253,690 | |
Accumulated impairment | $ 69,584 | $ 0 |
Year 1 [Member] | ||
Contingent Earn-Out Liability (Details) [Line Items] | ||
Customer list year | 15.00% | |
Year 2 [Member] | ||
Contingent Earn-Out Liability (Details) [Line Items] | ||
Customer list year | 30.00% |
Unearned Revenue (Details)
Unearned Revenue (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue totaling | $ 620,842 | $ 564,227 |
Unearned Revenue (Details) - Sc
Unearned Revenue (Details) - Schedule of unearned revenue includes customer deposits and deferred revenue - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of unearned revenue includes customer deposits and deferred revenue [Abstract] | ||
Beginning Balance | $ 564,227 | $ 362,951 |
Ending Balance | 620,842 | 564,227 |
Revenue recognized | (27,075,116) | (37,752,173) |
Amounts collected or invoiced | $ 27,131,731 | $ 37,953,449 |
Reward Card Program Liability (
Reward Card Program Liability (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Reward Card Program Liability [Abstract] | ||
Deposits totaling | $ 43,878 | $ 173,270 |
Due to Stockholder (Details)
Due to Stockholder (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Stockholders Equity Notes Disclosure [Abstract] | ||
Accrues interest, percentage | 5.00% | |
Amounts due to stockholder | $ 500,000 | $ 0 |
Interest accrued | $ 1,096 | $ 0 |
Note Payable - Wildman (Details
Note Payable - Wildman (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Note Payable [Abstract] | |
Inventory purchased | $ 162,358 |
Note totaled | $ 162,358 |
Anticipates term | 12 months |
Acquisition (Details)
Acquisition (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Asset Acquisition [Abstract] | |
Aggregate purchase price | $ 2,937,222 |
Asset has been impaired | $ 69,584 |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of fair value assets | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Fair Value of Identifiable Assets Acquired: | |
Inventory | $ 649,433 |
Property and Equipment | 34,099 |
Intangible - Customer List | 2,253,690 |
Total fair value of identifiable assets | 2,937,222 |
Consideration Paid: | |
Cash | 521,174 |
Note Payable - Wildman | 162,358 |
Wildman Contingent Earn-Out Liability | 2,253,690 |
Total consideration paid | $ 2,937,222 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Lease Obligation [Abstract] | ||
Rent expense | $ 297,105 | $ 311,430 |
Lease Obligations (Details) - S
Lease Obligations (Details) - Schedule of future minimum lease payments | Sep. 30, 2021USD ($) |
Lease Obligations (Details) - Schedule of future minimum lease payments [Line Items] | |
2022 | $ 343,503 |
2023 | 349,412 |
2024 | 323,584 |
2025 | 325,776 |
2026 | |
Total | $ 1,342,275 |
Capital Structure (Details)
Capital Structure (Details) | 1 Months Ended |
May 24, 2021$ / sharesshares | |
Capital Structure (Details) [Line Items] | |
Common stock, authorized | 200,000 |
Common stock, par value (in Dollars per share) | $ / shares | $ 0.01 |
Shares issued | 300,000,000 |
Preferred stock, par value (in Dollars per share) | $ / shares | $ 0.0001 |
Common stock, shares outstanding | 100,000 |
Common stock, shares issued | 100,000 |
Stock split, description | As a result of this stock split, the Company’s issued and outstanding common stock increased from 100 shares to 10,000,000 shares. |
Common Stock [Member] | |
Capital Structure (Details) [Line Items] | |
Common stock, par value (in Dollars per share) | $ / shares | $ 0.0001 |
Shares issued | 350,000,000 |
Preferred Stock [Member] | |
Capital Structure (Details) [Line Items] | |
Shares issued | 50,000,000 |
Advertising (Details)
Advertising (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Advertising [Abstract] | ||
Advertising costs amount | $ 99,241 | $ 56,771 |
Major Customers (Details)
Major Customers (Details) | Sep. 30, 2021 |
Major Customers (Details) [Line Items] | |
Accounts receivable | 28.00% |
Two Major Customer [Member] | |
Major Customers (Details) [Line Items] | |
Revenues | 44.00% |
Employee Benefit Program (Detai
Employee Benefit Program (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||
Employee vested | 100.00% | |
Employer contributions accrued | $ 123,409 | $ 81,622 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Nov. 12, 2021 | Nov. 22, 2021 |
Subsequent Events (Details) [Line Items] | ||
Additional purchase shares | 650,602 | |
Common stock shares | 650,602 | |
Sale of shares | 4,987,951 | |
Common stock warrants | 4,987,951 | |
Total gross proceeds (in Dollars) | $ 20,699,996.65 | |
Received net proceeds (in Dollars) | $ 18,747,317 | |
Replacing the previous (in Dollars) | $ 7,000,000 | |
Bears interest prime rate percentage | 0.50% |