Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2180

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 9C
Chunk 2180
---
 a lease at inception and classifies its leases at commencement. Operating leases are presented as right-of-use (“ROU”)
assets and the corresponding lease liabilities are included in operating lease liabilities, current and operating lease liabilities on
the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset, and lease
liabilities represent the Company’s obligation for lease payments in exchange for the ability to use the asset for the duration
of the lease term. The Company does not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities.

ROU assets and lease liabilities are
recognized at commencement date and determined using the present value of the future minimum lease payments over the lease term. The Company
uses an incremental borrowing rate based on estimated rate of interest for collateralized borrowing since the Company’s leases do
not include an implicit interest rate. The estimated incremental borrowing rate considers market data, actual lease economic environment,
and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that the Company
will exercise that option. The Company recognizes lease expense on a straight-line basis over the lease term.

The Company has lease agreements which
contain both lease and non-lease components, which it has not elected to account for as a single lease component. As such, minimum lease
payments exclude fixed payments for non-lease components within a lease agreement, in addition to excluding variable lease payments not
dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation
from period to period.

17.Segments - In its operation of the business, management, including our chief operating decision maker
(CODM), who is also our CEO, reviews certain financial information, including segmented internal profit and loss statements prepared on
a basis not consistent with GAAP.

For each of 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,