Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 9

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 9
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 These reclassifications have no impact on the Company’s previously reported
cash flows.

19.Recent Accounting Pronouncements

Recent Accounting Pronouncements
- Adopted:

ASU 2024-01 – Compensation
– Stock Compensation (Topic 718)

In March 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2024-01, which clarifies the accounting for
profits interest awards. This update provides guidance on determining whether a profits interest or similar award falls within the scope
of ASC 718 Compensation—Stock Compensation or other guidance. The ASU aims to ensure consistency and transparency in the accounting
for these awards by providing clearer criteria and illustrative examples.

The guidance is effective for fiscal
years and interim periods beginning after December 15, 2024, with early adoption permitted. The Company adopted the standard on January
1, 2025. Its adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Recent Accounting Pronouncements
- Not Yet Adopted:

ASU 2023-09 – Income Taxes
(Topic 740)

In December 2023, the FASB issued ASU
2023-09, which amends the guidance on income tax disclosures. This update aims to improve the transparency and usefulness of income tax
disclosures by requiring entities to provide more detailed information about the nature and effects of income tax uncertainties, the components
of income tax expense, and the effective tax rate reconciliation. Additionally, the ASU mandates enhanced disclosures about deferred tax
assets and liabilities, including the valuation allowance and the impact of tax law changes. The guidance is effective for fiscal years
beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted.
The Company is currently evaluating the impact of adoption of this ASU on its disclosures.

13

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

ASU 2024-03 - Income Statement -
Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU
2024-03, which requires the disaggregation, in the notes to the financial statements, of certain cost and