Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 15

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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FASB) issued ASU 2024-01, which clarifies the accounting for profits interest awards. This update provides guidance on
determining whether a profits interest or similar award falls within the scope of ASC 718 (Compensation—Stock Compensation) or other
guidance. The ASU aims to ensure consistency and transparency in the accounting for these awards by providing clearer criteria and illustrative
examples.

The guidance is effective for fiscal
years and interim periods beginning after December 15, 2024, with early adoption permitted. The Company adopted the standard on January
1, 2025. The standard did not have a material impact of the Company’s financial statements.

2024-03 - Income Statement - Reporting
Comprehensive Income - Expense Disaggregation Disclosure

In November 2024, the FASB issued ASU
2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses (“ASU 2024-03”), which requires the disaggregation, in the notes to the financial statements, of certain
cost and expense captions presented on the face of the Company’s Statement of Operations, to provide enhanced transparency to investors.
The update may be applied either prospectively or retrospectively. ASU 2024-03 is effective for fiscal years beginning after December
15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted.

The Company is currently evaluating
the impact ASU 2024-03 will have on its disclosures.

18.Subsequent Events - Management has evaluated events occurring after the balance sheet date through May
15, 2025, the date on which the financial statements were filed.

12

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

B.FAIR VALUE MEASUREMENTS:

Fair value measurements discussed herein
are based upon certain market assumptions and pertinent information available to management as of March 31, 2025 and December 31, 2024.
The carrying amount of accounts payable approximated fair value as they are short term in nature. The fair value of stock options are
estimated based on the Black-Scholes model during the three months ended March 31, 2025 and the year ended December 31, 2024.

Fair Value