Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 261

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 261
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 Board of Directors
adopted the Amended and Restated 2021 Equity Incentive Plan (the “2021 Plan”) which provides for the granting of non-qualified
stock options and restricted stock to the Company’s employees, officers, directors, and outside consultants to purchase shares of
the Company’s common stock. As of March 31, 2025, the number of shares of common stock available for issuance under the 2021
Plan is 1,048,419 shares of common stock.

Stock-based compensation expense included
the following components:

    March 31,  2025  
    March 31,  2024 
  
    Stock options 
    $     8  
    $— 
  
    Restricted stock 
     1  
     150 

    $9  
    $150 

All stock-based compensation expense
is recorded in General and administrative expense in the Statements of 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 10-years contractual terms.

A summary of option activity under
the 2021 Plan as of and for the three months ended March 31, 2025 is presented below:

    Options
     
    Shares

    Weighted Average Exercise Price

    Aggregate Intrinsic Value

    Outstanding at December 31, 2024

    1,