Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 242

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 242
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The Company uses historical data on employee turnover and terminations to estimate the percentage of options that will ultimately be
exercised. Expected volatility is based on historical volatility from a representative sample of publicly traded companies. The expected
term represents the period of time that the options are expected to be outstanding. The risk-free interest rate is estimated using the
rate of return on U.S. Treasury Notes with a life that approximates the expected life of the option. Forfeitures are estimated at the
time of grant and revised, if necessary, in subsequent periods if actual results differ from the estimates. Stock-based compensation
is based on awards that are ultimately expected to vest.

Option awards are generally granted
with an exercise price equal to the fair value of the Company’s stock at the date of grant; those options generally vest based
on four years of continuous service and have 10-years contractual terms.

A summary of option activity
under the 2021 Plan as of and for the three months ended March 31, 2024 is presented below:

    Options 
    Shares  
    Weighted
    Average
    Exercise
    Price  
    Aggregate
    Intrinsic
    Value 
  
    Outstanding at January 1, 2024 
     1,466,062  
    $3.98  
    $   — 
  
    Granted 
     —  
     —  
     — 
  
    Forfeited or expired and other adjustments 
     (51,563) 
     4.11  
     — 
  
    Outstanding at March 31, 2024 
     1,414,499  
    $4.15  
    $— 
  
    Vested and exercisable at March 31, 2024 
     864,167  
    $4.04  
    $— 

The Company did not issue any
options during the three months ended March 31, 2024. The weighted-average grant-date fair value of options granted during the three
months ended March 31, 2023 was $1.77. The weighted-average remaining contractual term for the outstanding options is approximately 8
years as of March 31, 2024.

Restricted Stock:

Restricted stock consists of time-based
restricted stock units (RSUs) and performance-based restricted stock units (PSUs). RSUs granted under the 2021 Plan generally vest over
3 to 4