Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2623

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 14
Chunk 2623
---
.

18.Uncertainty in Income and Other Taxes - The Company adopted
the standards for Accounting for Uncertainty in Income Taxes, which required the Company to report any uncertain tax positions and to
adjust its financial statements for the impact thereof. As of December 31, 2024 and 2023, the Company determined it had uncertain tax
positions of $3,141 and $2,448. The Company believes the impact will not be material as it will be able to utilize net operating losses
to offset a majority of the risk. The Company recorded a nominal amount of interest expense which is included as part of income tax expense.

19.Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes. Deferred taxes are provided for differences between the basis of assets
and liabilities for financial statements and income tax purposes offset by a valuation allowance for 2024 and 2023.

20.Earnings/ Loss per Share -Basic earnings per share (“EPS”) is computed based on the weighted
average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of
shares of common stock plus the effect of dilutive potential shares of common stock outstanding during the period using the treasury stock
method. Dilutive potential common shares include the issuance of potential shares of common stock for outstanding stock options and warrants.

F-13

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

21.Stock-Based Compensation - The Company accounts for its stock-based awards in accordance with ASC 718,
Compensation - Stock Compensation. ASC 718 requires all stock-based payments to employees to be recognized in the consolidated statements
of operations based on their fair values. The Company uses the Black-Scholes option pricing model to determine the fair value of options
granted. The Company is recognizing compensation costs only for those stock-based awards expected to vest after considering expected forfeitures.
Cumulative compensation expense is at least equal to the compensation expense for vested awards. Stock-based compensation is recognized
on a straight-line basis over the service period of each award. The Company records compensation cost as an element of general and administrative
expense in the accompanying consolidated statements of operations.

22.Stock Option and Warrant Valuation - Stock option and warrant valuation models require the input of highly
subjective assumptions. The fair value of stock-based payment awards was