Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 14

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 standards codification. The risk-free interest rate was determined from the implied yields of U.S.
Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

16.Segments - In its operation of the business, management, including our chief operating decision maker
(CODM), who is also our CEO, reviews certain financial information, including segmented internal profit and loss statements prepared on
a basis not consistent with GAAP.

11

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

For each of its segments, the CODM uses
segment revenue, gross margin and segment operating income in the annual budgeting and forecasting process. The CODM considers budget-to-actual
variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the segments. The CODM
also uses segment gross margin for evaluating product pricing and segment operating income to assess the performance for each segment
by comparing the results and return on assets of each segment with one another. The CODM uses segment gross margin and segment operating
income in determining the compensation of certain employees.

During the periods presented, we reported
our financial performance based on the following segments: Stran & Company, Inc. and Stran Loyalty Solutions, LLC.

17.Recent Accounting Pronouncements - Management has reviewed the following recent accounting pronouncements:

2023-09 – Income Taxes (Topic
740)

In December 2023, the Financial Accounting
Standards Board (FASB) issued ASU 2023-09, which amends the guidance on income tax disclosures. This update aims to improve the transparency
and usefulness of income tax disclosures by requiring entities to provide more detailed information about the nature and effects of income
tax uncertainties, the components of income tax expense, and the effective tax rate reconciliation. Additionally, the ASU mandates enhanced
disclosures about deferred tax assets and liabilities, including the valuation allowance and the impact of tax law changes.

The guidance is effective for fiscal
years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption
permitted. The Company is currently evaluating the timing and impacts of adoption of this ASU.

2024-01 – Compensation –
Stock Compensation (Topic 718)

In March 2024, the Financial Accounting
Standards Board (