Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 311

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 311
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 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 six months ended June 30, 2024 is presented below:

    Options 
    Shares  
    Weighted Average Exercise Price  
    Aggregate Intrinsic Value 
  
    Outstanding at January 1, 2024 
     1,466,062  
    $4.15  
    $— 
  
    Granted 
     —  
     —  
     — 
  
    Forfeited or expired and other adjustments 
     (54,096) 
     4.71  
     — 
  
    Outstanding at June 30, 2024 
     1,411,966  
    $3.95  
    $— 
  
    Vested and exercisable at June 30, 2024 
     921,834  
    $4.04  
    $— 

The Company did not issue any options
during the six months ended June 30, 2024. The weighted-average grant-date fair value of options granted during the six months ended June
30, 2023 was $1.55. The weighted-average remaining contractual term for the outstanding options
is approximately 8 years as of June 30, 2024.

Restricted Stock:

Restricted stock consists of time-based
restricted stock units (RSUs) and performance-based restricted stock units (PSUs). RSUs