Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 194

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 194
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 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 -years contractual terms.

| Risk-free interest rate |     | 3.86%          |
| Expected term           |     | 5.5-6.25 years |
| Expected volatility     |     | 29.24%         |
| Expected dividends      |     | 0%             |

F-36 STRAN & COMPANY, INC.
NOTES TO THE RESTATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

| Options                                     |     | Shares     
 (Restated) |           |   |     | Weighted Average 
 Exercise Price   
 (Restated)       |      |     | Aggregate       
 Intrinsic Value 
 (Restated)      |       |
|:--------------------------------------------|:----|:-----------|----------:|:--|:----|:-----------------|-----:|:----|:----------------|------:|
| Outstanding at January 1, 2022              |     |            | 1,515,000 |   |     | $                | 4.15 |     | $               | 2,879 |
| Granted                                     |     |            |    81,000 |   |     |                  | 2.32 |     |                 |     — |
| Forfeited or expired and