Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 105

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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. Consequently, these assets were classified as indefinite-lived intangibles and accordingly are not
amortized but reviewed for impairment annually, or sooner under certain circumstances. The Company tests its intangible assets with indefinite
lives annually on October 1 in accordance with ASC 350 which requires that the fair value of intangible assets with indefinite lives be
compared to the carrying value of those assets. In situations where the carrying value exceeds the fair value of the intangible asset,
an impairment loss equal to the difference is recognized. The Company estimates the fair value of its indefinite-lived intangible assets
using a relief from royalty approach that was discounted for the time value of money; specifically, based on discounted cash flows.

Customer relationships and other definite-lived
intangible assets are amortized over their estimated useful lives using the straight-line method. Definite-lived intangible assets are
tested periodically for impairment in accordance with ASC 360, Property, Plant and Equipment when events or changes in circumstances indicate
that an asset’s carrying value may not be recoverable. The evaluation for recoverability involves comparing the carrying amount
of the definite-lived intangible asset to the Company’s expectations of the future undiscounted cash flows derived from the definite-lived
intangible asset. In the event the carrying value of the definite-lived intangible asset exceeds the undiscounted future cash flows expected
to be derived from the definite-lived intangible asset over its remaining estimated useful life, the definite-lived intangible asset is
considered not recoverable and the definite-lived intangible asset is tested for impairment. An impairment loss is measured as the excess
of the asset’s carrying value over its fair value, calculated using discounted future cash flows. The computed impairment loss is
recognized in the period that the impairment occurs.

12.Uncertainty in Income Taxes - As of September 30, 2024 and December 31, 2023, the Company determined it
had uncertain tax positions of $2,448. The Company believes the impact will not be material as it will be able to utilize net operating
losses to offset a majority of the risk. The Company recorded a nominal amount of interest expense which is included as part of income
tax expense.

13.Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes. Deferred taxes are provided for differences between the basis of assets
and liabilities for financial statements and income tax purposes offset by a valuation allowance.

14.Stock