Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2868

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 8
Chunk 2868
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 its segments, the CODM uses
segment revenue, gross margin and segment operating income in the annual budgeting and forecasting process. The CODM considers budget-to-actual
variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the segments. The CODM
also uses segment gross margin for evaluating product pricing and segment operating income to assess the performance for each segment
by comparing the results and return on assets of each segment with one another. The CODM uses segment gross margin and segment operating
income in determining the compensation of certain employees.

During the periods presented, we reported
our financial performance based on the following segments: Stran & Company, Inc. and Stran Loyalty Solutions, LLC.

18.Uncertainty in Income and Other Taxes - The Company adopted
the standards for Accounting for Uncertainty in Income Taxes, which required the Company to report any uncertain tax positions and to
adjust its financial statements for the impact thereof. As of December 31, 2024 and 2023, the Company determined it had uncertain tax
positions of $3,141 and $2,448. The Company believes the impact will not be material as it will be able to utilize net operating losses
to offset a majority of the risk. The Company recorded a nominal amount of interest expense which is included as part of income tax expense.

19.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 offset by a valuation allowance for 2024 and 2023.

20.Earnings/ Loss per Share -Basic earnings per share (“EPS”) is computed based on the weighted
average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of
shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock
method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and warrants.

F-13

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

21.Stock-Based Compensation - The Company accounts for its stock-based awards in accordance with ASC 718,
Compensation - Stock Compensation. ASC 718 requires all stock-based payments to employees to be recognized