Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 54

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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, respectively. We anticipate no deficiencies in our ability to
make these payments.

Other Cash Obligations

The Company manages reward card programs for
clients. Under these programs, 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 March 31, 2024
and December 31, 2023, the Company had net deposits totaling approximately $2.9 million and $0.0 million, respectively.

Our other principal cash payment obligations
have consisted principally of obligations under the Revolving Line of Credit. As stated above, as of March 31, 2024 and December 31,
2023, we had not drawn any funds from the Revolving Line of Credit under the Loan Documents.

36

Critical Accounting Estimates

We prepare our financial statements in accordance
with U.S. GAAP. The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue, costs and expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing
basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.
Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between
our estimates and actual results, our future financial statements presentation, financial condition, results of operations, and cash
flows will be affected.

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets and contingent earn-out liabilities have the greatest potential impact
on our financial statements. Therefore, we consider these to be our critical accounting policies and estimates. For further information
on all of our significant accounting policies, see the notes to our financial statements beginning on page 1 of this Quarterly Report
on Form 10-Q.

Valuation of Goodwill and Intangible Assets

We perform an annual impairment review of our
goodwill during the fourth fiscal quarter of each year, and more frequently if we believe indicators of impairment exist. The process
of evaluating the potential impairment of goodwill is highly subjective and requires significant judgment. To review for impairment,
we first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than
not that the fair value of our reporting unit is less than its carrying amount. Our qualitative assessment of the recoverability of goodwill,
whether performed annually or based on specific