Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 93

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 93
---
5 
     398 
  
    2026 
     440 
  
    2027 
     407 
  
    2028 
     65 
  
    Total future non-cancelable minimum lease payments 
    $1,310 

Lease costs for the three months ended March 31,
2025 and 2024 totaled approximately $0.2 million and $0.2 million, respectively. We anticipate
no deficiencies in our ability to make these payments.

Other Cash Obligations

The Company manages reward card programs for clients.
Under these programs, 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. As of March 31, 2025 and December
31, 2024, the Company had net deposits totaling approximately $0.9 million and $0.4 million, respectively.

Our other principal cash payment obligations have
consisted principally of obligations under the Revolving Line of Credit. As stated above, as of March 31, 2025 and December 31, 2024,
we had not drawn any funds from the Revolving Line of Credit under the Loan Documents.

Critical Accounting Estimates 

We prepare our financial statements in accordance
with U.S. GAAP. The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue, costs and expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing
basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.
Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between
our estimates and actual results, our future financial statements presentation, financial condition, results of operations, and cash flows
will be affected.

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets, and contingent earn-out liabilities have the greatest potential impact
on our financial statements. Therefore, we consider these to be our critical accounting policies and estimates. For further information
on all of our significant accounting policies, see the notes to our financial statements beginning on page 1 of this Quarterly Report
on Form 10-Q.

34

Valuation of Goodwill and Intangible Assets

We perform an annual impairment review of our
goodwill during the fourth fiscal quarter of each year, and more frequently