Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 34

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 of common stock available for issuance under the 2021
Plan is 1,041,323 shares of common stock.

Stock-based compensation expense included
the following components:

    Three months ended
 June 30,  
    Six months ended
 June 30, 

    2024  
    2023  
    2024  
    2023 

    (Restated)  
       
    (Restated) 
  
    Stock options 
    $17  
    $12  
    $17  
    $25 
  
    Restricted stock 
     3  
     98  
     153  
     112 

    $20  
    $110  
    $170  
    $137 

All stock-based compensation expense
is recorded in General and administrative expense in the Statements of Operations.

Non-Qualified Stock Options

The fair value of options is estimated
on the date of grant using the Black-Scholes option pricing model using the assumptions noted in the table below. The fair value is amortized
as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period.
The Company uses historical data on employee turnover and terminations to estimate the percentage of options that will ultimately be exercised.
Expected volatility is based on historical volatility from a representative sample of publicly traded companies. The expected term represents
the period of time that the options are expected to be outstanding. The risk-free interest rate is estimated using the rate of return
on U.S. Treasury Notes with a life that approximates the expected life of the option. Forfeitures are estimated at the time of grant and
revised, if necessary, in subsequent periods if actual results differ from the estimates. Stock-based compensation is based on awards
that are ultimately expected to vest.

Option awards are generally granted
with an exercise price equal to the fair value of the Company’s stock at the date of grant; those options generally vest based on
four years of continuous service and have 10-years contractual terms.

A summary of option activity under
the 2021 Plan as of and for the six months ended June 30, 2024 is presented below:

    Options 
    Shares  
    Weighted Average Exercise Price  
    Aggregate Intrinsic Value 
  
    Outstanding at January 1, 2024 
     1,466,062  
    $4.15