Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 21

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part II, Item 8
Chunk 21
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. The estimated
fair value of the Company’s investments and money market accounts represent Level 1 measurements. The estimated fair value of the
earn-out liabilities represent Level 3 measurements. The following table presents information about the Company’s assets and liabilities
that are measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, and indicates the fair value
hierarchy of the valuation inputs the Company utilized to determine such fair value:

    Description 
    Level  
    September 30, 
2024  
    December 31,
 2023 
  
    Assets: 

    Investments 
     1  
    $6,934  
    $10,393 

    Liabilities: 

    Earn-out liabilities 
     3  
    $919  
    $987 

Investments

The Company’s investments consisted
of the following as of September 30, 2024:

    Cost  
    Unrealized Gain (Loss)  
    Fair Value 
  
    Money market fund 
    $2,203  
    $—  
    $2,203 
  
    Corporate bonds 
     3,154  
     10  
     3,164 
  
    Mutual funds 
     757  
     16  
     773 
  
    US Treasury bills 
     798  
     (4) 
     794 

    $6,912  
    $22  
    $6,934 

Earn-Out Liabilities

A reconciliation of the earn-out liability
is included below:

    Balance as of December 31, 2023 
    $987 
  
    Payments earned and paid 
     (68)
  
    Balance as of September 30, 2024 
    $919 

    Current portion of contingent earn-out liabilities 
    $156 
  
    Long-term contingent earn-out liabilities 
    $763 

For the three and nine months ended
September 30, 2024 and 2023, the Company did not recognize any change in fair value of contingent earn-out liability as it was deemed
immaterial in both periods.

D.INVENTORY:

Inventory consists of the following:

    September 30, 
2024  
    December 31, 
2023 
  
    Finished goods (branded products) 
    $4,500  
    $4,182