Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 29

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 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.
The Company uses historical data on employee turnover and terminations to estimate the percentage of options that will ultimately be
exercised. Expected volatility is based on historical volatility from a representative sample of publicly traded companies. The expected
term represents the period of time that the options are expected to be outstanding. The risk-free interest rate is estimated using the
rate of return on U.S. Treasury Notes with a life that approximates the expected life of the option. Forfeitures are estimated at the
time of grant and revised, if necessary, in subsequent periods if actual results differ from the estimates. Stock-based compensation
is based on awards that are ultimately expected to vest.

Option awards are generally granted
with an exercise price equal to the fair value of the Company’s stock at the date of grant; those options generally vest based
on four years of continuous service and have 10-years contractual terms.

A summary of option activity
under the 2021 Plan as of and for the three months ended March 31, 2024 is presented