Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 98

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 98
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 and liabilities, the Company seeks to maximize the
use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities
based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    Level 3:
    Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The carrying value of certain financial
instruments, including cash and cash equivalents, accounts receivable, accounts payable and reward card program liabilities are carried
at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

8.Concentration of Credit Risk - Financial instruments that
potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable and deposits in excess of federally
insured limits. These risks are managed by performing ongoing credit evaluations of customers’ financial condition and by maintaining
all deposits in high quality financial institutions.

As of September 30, 2025 and December
31, 2024, the Company maintained deposits in four banks that exceeded the federal insured deposit limit of the Federal Deposit Insurance
Corporation (“FDIC”).

For the three and nine months ended
September 30, 2025, the Company had no major customers to which sales accounted for more than 10% of the Company’s revenues. The
Company had accounts receivable from one customer amounting to 15% of the total accounts receivable balance as of September 30, 2025.

For
the three and nine months ended September 30, 2024, the Company had one major customer
to which sales accounted for more than 10% of the Company’s revenues. The Company had accounts receivable from this customer amounting
to 0.8% of the total accounts receivable balance.

9

STRAN & COMPANY, INC.

NOTES