Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 106

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adoption
of this ASU on its disclosures.

ASU 2025-05 – Financial Instruments
– Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025-05,
which provides all entities with a practical expedient for use in developing reasonable and supportable forecasts as part of estimating
expected credit losses, upon which an entity may assume that current conditions as of the balance sheet date do not change for the remaining
life of the asset. The update must be applied prospectively. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025
and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact
of adoption of this ASU on its disclosures.

ASU 2025-06 - Targeted Improvements
to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU
2025-06, which is intended to improve the operability and application of guidance related to capitalized software development costs. ASU
2025-06 is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating
the impact of adoption of this ASU on its disclosures.

No other new accounting pronouncements
adopted or issued had or are expected to have a material impact on the unaudited condensed consolidated financial statements.

B.FAIR VALUE MEASUREMENTS:

Fair value measurements discussed herein
are based upon certain market assumptions and pertinent information available to management as of September 30, 2025 and December 31,
2024.

Fair Value on a Recurring Basis

The Company follows the guidance in
ASC 820, Fair Value Measurement, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting
period. The estimated fair value of the Company’s investments and money market accounts represent Level 1 measurements. The estimated
fair value of the earn-out liabilities represents Level 3 measurements. There were no transfers between levels within the fair value measurement
hierarchy during the quarter ended September 30, 2025. The following table presents information about the Company’s assets and liabilities
that are measured at fair value on a recurring