Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 108

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 Brand Solutions, T.R. Miller Co., and Premier NYC.

Assumptions used in determining the
fair value of the earn-out liabilities include the acquired asset’s projected gross profit, discount rates, remaining time intervals
and residual earn-out percentages. The following table summarizes the key unobservable inputs into the models used to estimate the fair
value of the earn-out liabilities at September 30, 2025:

    Unobservable Inputs 
    September 30, 
2025
  
    Projected annual gross profit 
    $907 - $4,398
  
    Earnout percentage 
    40.0% - 45.0%
  
    Expected volatility 
    25.0%
  
    Risk-free rate 
    3.6% - 4.2%
  
    Discount rate 
    5.0% - 5.2%
  
    Required Metric Risk Premium 
    5.3% - 7.7%
  
    Time period to settlement 
    0.2 - 2.2 years

15

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

A reconciliation of the earn-out liabilities
is included below:

    Balance as of December 31, 2024 
    $711 
  
    Payments earned and paid 
     (151)
  
    Balance as of September 30, 2025 
    $560 

    Current portion of contingent earn-out liabilities 
    $105 
  
    Long-term contingent earn-out liabilities 
    $455 

C.INVENTORY:

Inventory consists of the following:

    September 30, 
2025  
    December 31, 
2024 
  
    Finished goods (branded products) 
    $7,533  
    $5,093 
  
    Goods in process (un-branded products) 
     207  
     296 

    $7,740  
    $5,389 

D.PROPERTY AND EQUIPMENT, NET:

Property and equipment, net consists
of the following:

    September 30, 
2025  
    December 31, 
2024 
  
    Leasehold improvements 
    $364  
    $6 
  
    Office furniture and equipment 
     502  
     660 
  
    Software 
     3,275  
     2,