Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 289

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 289
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 a volatility
figure derived from an index of historical stock prices for comparable entities. For warrants and stock options issued to non- employees,
the Company accounts for the expected 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.

14.Reclassifications - Certain reclassifications have been made to the Company’s previously issued
Statements of Operations whereby amounts relating to (i) cost of sales, previously reflected as multiple components, have been aggregated
and reclassified as a single line item, cost of sales. Additionally, certain reclassifications have been made to the Company’s previously
issued Statements of Cash Flows whereby amounts relating to the payment of contingent earn-out and installment payments, previously aggregated
and reflected as a single line item in the cash flows from financing activities, have been shown gross and shown as separate line items,
payment of contingent earn-out liabilities and payment of installment payment liabilities. These reclassifications had no impact on previously
reported net income, cash flows, or shareholders’ equity. 

10

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

15.Recent Accounting Pronouncements - Management has reviewed the following recent accounting pronouncements:

2023-07 – Segment Reporting
(Topic 280)

In November 2023, the Financial Accounting
Standards Board (FASB) issued ASU 2023-07, which amends the guidance on segment reporting. This update enhances the disclosure requirements
for reportable segments, primarily by requiring more detailed information about significant segment expenses. The amendments also clarify
the circumstances under which an entity can disclose multiple measures of segment profit or loss and provide new segment disclosure requirements
for entities with a single reportable segment.

The guidance is effective for fiscal
years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption
permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating
the impacts of adoption of this