Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1832

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 9
Chunk 1832
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 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 estimated using the Black-Scholes option model with a volatility
figure derived from an index of historical stock prices for comparable entities. For warrants and stock options issued to non-employees,
the Company accounts for the expected life based on the contractual life of the warrants and stock options. For employees, the Company
accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla”
options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S.
Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

23.Sales Tax - Sales tax collected from customers is recorded as a liability, pending remittance to the taxing
jurisdiction. The Company remits sales, use, and GST taxes to Massachusetts,
other state jurisdictions, and Canada, respectively.

24.Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported amounts and disclosure of certain assets,
liabilities and expenses. The most significant estimates in the Company’s financial statements relate to the fair value of assets
and liabilities assumed in acquisitions and the fair value of the contingent earnout liability. These estimates and assumptions are based
on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily
apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material
differences between the estimates and actual results, the Company’s future results of operations will be affected.

25.Derivative Financial Instruments - The Company accounts for warrants as either equity-classified or liability-classified
instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing
Li