Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1330

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1330
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 and by maintaining
all deposits in high quality financial institutions.

During the years ended December 31,
2024 and 2023, the Company maintained deposits in four banks that exceeded the federal insured deposit limit of the Federal Deposit Insurance
Corporation (FDIC).

For
the year ended December 31, 2024, the Company had no major customer to which sales accounted for more than 10% of the Company’s
revenues. The Company had accounts receivable from two customers amounting to 20.5% of the total accounts receivable balance.

For
the year ended December 31, 2023, the Company had one major customer to which sales accounted for approximately 14.4% of the Company’s
revenues and 0.8% of the total accounts receivable balance.

F-10

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

10.Inventory - Inventory consists of finished goods (branded
products) and goods in process (un-branded products awaiting decoration). All inventory is stated at the lower of cost (first-in, first-out
method) or net realizable value.

11.Property and Equipment, Net - Property and equipment are recorded at cost. Maintenance and repairs are
charged to expense as incurred whereas major betterments are capitalized. Depreciation is provided using straight-line and accelerated
methods over five years.

12.Goodwill and Intangible Assets - Goodwill represents the excess purchase price of the acquired businesses
over the fair value of identifiable net assets acquired. Goodwill is not amortized; rather, it is subject to a periodic assessment for
impairment. The Company reviews goodwill for possible impairment annually on October 1 every year or whenever events or circumstances
indicate that the carrying amount may not be recoverable.

To determine whether goodwill is impaired,
annually or more frequently if needed, the Company performs a multi-step impairment test. Impairment testing is conducted at the reporting
unit level. The Company first has the option to assess qualitative factors to determine if it is more likely than not that the carrying
value of a reporting unit exceeds its estimated fair value. Under ASC 350, Intangibles - Goodwill and Other, the qualitative assessment
requires the consideration of factors such as recent market transactions, macroeconomic conditions, and changes in projected future cash
flows or planned revenue or earnings of the reporting unit as potential indicators when determining the