Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 480

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1B
Chunk 480
---
12.Goodwill and Intangible Assets - Goodwill represents the excess purchase price of the acquired businesses
over the fair value of identifiable net assets acquired. Goodwill is not amortized; rather, it is subject to a periodic assessment for
impairment. The Company reviews goodwill for possible impairment annually on October 1 every year or whenever events or circumstances
indicate that the carrying amount may not be recoverable.

To determine whether goodwill is impaired,
annually or more frequently if needed, the Company performs a multi-step impairment test. Impairment testing is conducted at the reporting
unit level. The Company first has the option to assess qualitative factors to determine if it is more likely than not that the carrying
value of a reporting unit exceeds its estimated fair value. Under ASC 350, Intangibles - Goodwill and Other, the qualitative assessment
requires the consideration of factors such as recent market transactions, macroeconomic conditions, and changes in projected future cash
flows or planned revenue or earnings of the reporting unit as potential indicators when determining the need for a quantitative assessment
of impairment. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. When performing
quantitative testing, the Company first estimates the fair values of its reporting unit using a combination of an income and market approach.
To determine fair values, the Company is required to make assumptions about a wide variety of internal and external factors. Significant
assumptions used in the impairment analysis include financial projections of free cash flow (including significant assumptions about operations
including the rate of future revenue growth, capital requirements, and income taxes), long-term growth rates for determining terminal
value, and discount rates. Comparative market multiples are used to corroborate the results of the discounted cash flow test. These assumptions
require significant judgement. The single step is to determine the estimated fair value of the reporting unit and compare it to the carrying
value of the reporting unit, including goodwill. If we conclude based on our qualitative assessment that it is more likely than not that
the fair value of a reporting unit is less than its carrying value, we then measure the fair value of the reporting unit and compare its
fair value to its carrying value (Step 1 of the goodwill impairment test). The majority of the inputs used in the discounted cash flow model
are unobservable and thus are considered to be Level 3 inputs. The inputs for the market capitalization calculation are considered Level
1 inputs.

13.Revenue Recognition - The Company accounts for revenue under ASC