Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 166

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 166
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 approach is based on weighting the financial multiples of
comparable companies and applying a control premium. A reporting unit’s carrying value represents the assignment of various assets and
liabilities, excluding certain corporate assets and liabilities, such as cash and debt.

Our intangible assets with an indefinite life
are principally from acquired trade names. We estimated the fair value of our acquired trade name by utilizing the relief from royalty
method under a discounted cash flow model. We assess qualitative factors to determine if it is more likely than not that the fair value
of our indefinite-lived intangible assets are less than their carrying value. We compare the fair value of the indefinite-lived intangible
asset with its carrying value if the qualitative factors indicate it is more likely than not that the fair value of the asset is less
than its carrying value or if we decide to bypass the qualitative assessment. We record an impairment loss if the carrying value of the
indefinite-lived intangible assets exceeds the fair value of the assets for the difference in the values. We use a discounted cash flow
model, and, in certain cases, a market value approach is also utilized to supplement the discounted cash flow model to determine the estimated
fair value of the indefinite-lived intangible assets. We make estimates and assumptions regarding future cash flows, discount rates, long-term
growth rates and other market values to determine the estimated fair value of the indefinite-lived intangible assets.

We assess the impairment of long-lived assets,
including purchased property and equipment, right-of-use assets, and intangible assets, whenever events or changes in circumstances indicate
that the carrying value of such assets may not be recoverable. Factors we consider important which could trigger an impairment review
include: (i) significant under performance relative to historical or projected future operating results, (ii) significant changes in the
manner of our use of the acquired assets or the strategy for our overall business, or (iii) significant negative industry or economic
trends. The process of evaluating the potential impairment of long-lived assets under the accounting guidance on property and equipment
and intangible assets is also highly subjective and requires significant judgment. In order to estimate the fair value of long-lived assets,
we typically make various assumptions about the future prospects of our business or the part of our business to which the long-lived assets
relate. We also consider market factors specific to the business and estimate future cash flows to be generated by the business, which
requires significant judgment as it is based on assumptions about market demand for our products over a