Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 107

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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 the results and return on assets of each segment with one another. The CODM uses segment gross margin and segment operating
income in determining the compensation of certain employees.

During the periods presented, we reported
our financial performance based on the following segments: Stran & Company, Inc. and Stran Loyalty Solutions, LLC.

17.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.

18.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 ASU on its interim period reporting, and expects to adopt ASU 2023-07 effective for the financial statements
as of and for the year ended December 31, 2024 as required under the standard.

2023-09 – Income Taxes (Topic
740)

In December 2023, the Financial Accounting
Standards Board (FASB) issued ASU 2023-09, which amends the guidance on income tax disclosures. This