Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 16

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 its operation of the business, management, including our chief operating decision maker
(“CODM”), who is also our Chief Executive Officer, 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, we reported
our financial performance based on the following segments: Stran & Company, Inc. and Stran Loyalty Solutions, LLC.

18.Reclassification - Certain prior period statement of cash flow amounts have been reclassified to conform
to the Company's current period presentation. These reclassifications have no impact on the Company's previously reported cash flows.

19.Recent Accounting Pronouncements

Recent Accounting Pronouncements
- Adopted:

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

In March 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standard Update (“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. Its adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Recent Accounting Pronouncements
- Not Yet Adopted:

ASU 2023-09 – Income Taxes
(Topic 740)

In December 2023, the FASB issued ASU
2023-09, which amends the guidance on income tax disclosures. This update aims to improve the transparency and usefulness of income tax
disclosures by requiring entities