Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 241

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 241
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 has a $7,000 line of credit
with Salem Five Cents Savings Bank. As of March 31, 2024 and December 31, 2023, borrowings on this line of credit amounted to zero.
The line bears interest at prime rate plus 0.5% per annum. At March 31, 2024 and December 31, 2023, the interest rate was 9.00%.
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 March 31,
2024 and December 31, 2023, the Company had deposits totaling $2,850 and $875, respectively.

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 March 31, 2024, the number of shares of common stock available for issuance under the
2021 Plan is 1,038,707 shares of common stock. 

22

Stock-based compensation expense included
the following components:

    March 31,
    2024  
    March 31,
    2023 

    (Restated) 
  
    Stock options 
    $—  
    $13 
  
    Restricted stock 
     150  
     14 

    $150  
    $27 

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 value is amortized
as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period.