Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1474

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 7
Chunk 1474
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 data, actual lease economic environment,
and actual lease term at commencement date. The lease term may include options to extend when it is reasonably certain that the Company
will exercise that option. The Company recognizes lease expense on a straight-line basis over the lease term.

The Company has lease agreements which
contain both lease and non-lease components, which it has not elected to account for as a single lease component. As such, minimum lease
payments exclude fixed payments for non-lease components within a lease agreement, in addition to excluding variable lease payments not
dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation
from period to period.

17.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.

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.

18.Uncertainty in Income and Other Taxes - The Company adopted
the standards for Accounting for Uncertainty in Income Taxes, which required the Company to report any uncertain tax positions and to
adjust its financial statements for the impact thereof. As of December 31, 2024 and 2023, the Company determined it had uncertain tax
positions of $3,141 and $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.

19.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