Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 250

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 250
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 detailed information about the nature and effects of income
tax uncertainties, the components of income tax expense, and the effective tax rate reconciliation. Additionally, the ASU mandates enhanced
disclosures about deferred tax assets and liabilities, including the valuation allowance and the impact of tax law changes.

The guidance is effective for fiscal
years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption
permitted. The Company is currently evaluating the timing and impacts of adoption of this ASU.

2024-01 – Compensation –
Stock Compensation (Topic 718)

In March 2024, the Financial Accounting
Standards Board (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.

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STRAN