Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1398

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 7
Chunk 1398
---
 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.

51

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets have the greatest potential impact
on our financial statements. Additionally, when we acquire a business, we allocate the purchase price to the identifiable assets acquired
and liabilities assumed at their estimated fair values as of the respective acquisition date. The fair values of acquired intangible assets,
including customer relationships and trade names are determined using various valuation techniques, primarily utilizing various income-based
approaches. Significant assumptions used in these models include projected revenue growth rates, discount rates, customer retention rates
and royalty rates. These estimates require management’s judgment and are considered to be critical accounting estimates. 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 F-1 of this Annual Report on Form 10-K.

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 events or circumstances, considers various macroeconomic, industry-specific and company-specific
factors. These factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current,
historical or projected deterioration of our financial performance; or (iv) a sustained decrease in our market capitalization below our
net book value. After assessing the totality of events and circumstances, if we determine that it is more likely than not that the fair
value of our reporting unit to which goodwill is assigned is greater than its carrying amount, no further assessment is performed. If
we determine