Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 310

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 310
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, 2023, the interest rate was 9.00%
and 9.00%, respectively. The line is reviewed annually and is due on demand. This line of credit is secured by substantially all
assets of the Company. The line of credit was terminated effective August 26, 2024.

M.REWARD CARD PROGRAM LIABILITY:

The Company manages reward card programs
for customers. Under this program, the Company receives cash and simultaneously records a liability for the total amount received. These
accounts are adjusted on a periodic basis as reward cards are funded or reduced at the direction of the customers. At June 30, 2024
and December 31, 2023, the Company had deposits totaling $3,350 and $875, respectively.

23

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

N.STOCK-BASED COMPENSATION:

In November 2021, the Board of Directors
adopted the Amended and Restated 2021 Equity Incentive Plan (the “2021 Plan”) which provides for the granting of non-qualified
stock options and restricted stock to the Company’s employees, officers, directors, and outside consultants to purchase shares of
the Company’s common stock. As of June 30, 2024, the number of shares of common stock available for issuance under the 2021
Plan is 1,041,323 shares of common stock.

Stock-based compensation expense included
the following components:

    Three months ended
 June 30,  
    Six months ended
 June 30, 

    2024  
    2023  
    2024  
    2023 

    (Restated)  
       
    (Restated) 
  
    Stock options 
    $17  
    $12  
    $17  
    $25 
  
    Restricted stock 
     3  
     98  
     153  
     112 

    $20  
    $110  
    $170  
    $137 

All stock-based compensation expense
is recorded in General and administrative expense in the Statements of Operations.

Non-Qualified Stock Options

The fair value of options is estimated
on the date of grant using the Black-Scholes option pricing model using the assumptions noted in the table below. The fair