Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 408

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1B
Chunk 408
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. 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 December 31, 2024 and December
31, 2023, the Company had net deposits totaling approximately $6.0 million and $0.9 million, respectively.

Our other principal cash payment obligations have
consisted principally of obligations under the Revolving Line of Credit. As stated above, as of December 31, 2024 and December 31, 2023,
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.

51

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets have the greatest potential impact
on our financial statements. Additionally, when we acquire a business, we allocate the purchase price to the identifiable assets acquired
and liabilities assumed at their estimated fair values as of the respective acquisition date. The fair values of acquired intangible assets,
including customer relationships and trade names are determined using various valuation techniques, primarily utilizing various income-based
approaches. Significant assumptions used in these models include projected revenue growth rates, discount rates, customer retention rates
and royalty rates. These estimates require management’s judgment and are considered to be critical accounting estimates. 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 F-1 of this Annual Report on Form 10-K.

Valuation of Goodwill and Intangible Assets

We perform an annual impairment review of our
goodwill during the fourth