Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 252

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 252
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 following as of December 31, 2024:

    Cost  
    Unrealized  Gain (Loss)  
    Fair Value 
  
    Money market fund 
    $4,843  
    $      —  
    $4,843 
  
    Corporate bonds 
     2,958  
     (6) 
     2,952 
  
    Mutual funds 
     267  
     —  
     267 
  
    US Treasury bills 
     798  
     (4) 
     794 

    $8,866  
    $(10) 
    $8,856 

13

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Earn-Out Liabilities

A reconciliation of the earn-out liability
is included below:

    Balance as of December 31, 2024 
    $711 
  
    Payments earned and paid 
     — 
  
    Loss upon re-measurement 
     — 
  
    Balance as of March 31, 2025 
    $711 

    Current portion of contingent earn-out liabilities 
    $256 
  
    Long-term contingent earn-out liabilities 
    $455 

Fair Value on a Non-Recurring
Basis

Installment Payment Liabilities

The estimated fair value of the installment
payment liabilities represent a Level 2 measurement. The Company measures the initial installment payment liabilities at fair value by
discounting the contractually agreed upon payments by Bloomberg’s B+ corporate yield curve as of the valuation date, using rates
commensurate with the term to payment. The credit rating was determined utilizing Bloomberg’s default risk function for the Company
as of the valuation date. The installment payments and payment date (term) are based on the purchase agreements and the discount rate
represents a quoted market price classified within Level 2 of the fair value hierarchy. All assumptions utilized in the determination
of the fair values of assets and liabilities acquired in the Company’s business combinations were determined to be Level 3 in the
fair value hierarchy, see Note F. “Acquisitions” for the valuation assumptions used.

C.INVENTORY:

Inventory consists of the following:

    March 31,  2025  
    December 31,  2024 
  
    Finished goods (branded products)