Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 23

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 forma financial information is not necessarily indicative of the results of operations
as they would have been had the transactions been effected on the assumed date:

    June 30, 
2024 
  
    Sales 
    $60,431 

    Net income 
    $877 

16

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except
share and per share amounts)

G.ACCOUNTS PAYABLE AND ACCRUED EXPENSES:

Accounts payable and accrued expenses
consist of the following:

    June 30,  2025  
    December 31, 2024 
  
    Inventory purchases 
    $7,514  
    $6,363 
  
    Accrued expenses 
     1,999  
     2,556 

    $9,513  
    $8,919 

H.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.
As of June 30, 2025 and December 31, 2024, the Company had deposits totaling $9,000
and $6,000, respectively.

I.INSTALLMENT PAYMENT LIABILITIES:

The installment payment liabilities
incurred in connection with certain of the Company’s asset acquisitions were initially measured at fair value on the date of acquisition
by discounting the contractually agreed upon payments using the Bloomberg B+ corporate yield curve as of the valuation date, applying
rates commensurate with the term to payment. The credit rating was determined utilizing Bloomberg’s default risk function for the
Company as of the respective acquisition valuation dates. The installment payment amounts and payment dates were based on the purchase
agreements and the discount rates utilized at the date of the Company’s asset acquisition.

A reconciliation of the installment
payment liabilities is included below:

    Balance as of December 31, 2024 
    $790 
  
    Interest accretion 
     23 
  
    Payments made 
     (230)
  
    Balance as of June 30, 2025 
    $583 

    Current portion of installment payment liabilities 
    $158 
  
    Long-term installment payment liabilities 
    $425