Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 104

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 104
---
 life based on the contractual life of the warrants and stock options. For employees, the Company accounts for the expected
life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined
in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon
bonds with a remaining life consistent with the expected term of the options.

12

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

16.Advertising - The Company follows the policy of charging the costs of advertising to expense as incurred.
For the three months ended September 30, 2025 and 2024, advertising costs amounted to $80 and $148, respectively. For the nine months
ended September 30, 2025 and 2024, advertising costs amounted to $324 and $342, respectively.

17.Segments - In 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 U.S. 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