Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 346

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 346
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angibles, of which approximately $2,321
is expected to be deductible for tax purposes.

The
Company incurred approximately $435 of acquisition related transaction costs in conjunction
with the Gander Group Acquisition.

Pro forma disclosure for the Gander Group Acquisition

The following unaudited pro forma financial
information reflects the consolidated results of operations of the Company for the six months ended June 30, 2024, as if the Gander Group
Acquisition had taken place on January 1, 2024. The pro forma financial information is not necessarily indicative of the results of operations
as they would have been had the transactions been effected on the assumed date:

    June 30, 
2024 
  
    Sales 
    $60,431 

    Net income 
    $877 

16

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except
share and per share amounts)

G.ACCOUNTS PAYABLE AND ACCRUED EXPENSES:

Accounts payable and accrued expenses
consist of the following:

    June 30,  2025  
    December 31, 2024 
  
    Inventory purchases 
    $7,514  
    $6,363 
  
    Accrued expenses 
     1,999  
     2,556 

    $9,513  
    $8,919 

H.REWARD CARD PROGRAM LIABILITY:

The Company
manages reward card programs for customers. Under this program, the Company receives cash and simultaneously records a liability for the
total amount received. These accounts are adjusted on a periodic basis as reward cards are funded or reduced at the direction of the customers.
As of June 30, 2025 and December 31, 2024, the Company had deposits totaling $9,000
and $6,000, respectively.

I.INSTALLMENT PAYMENT LIABILITIES:

The installment payment liabilities
incurred in connection with certain of the Company’s asset acquisitions were initially measured at fair value on the date of acquisition
by discounting the contractually agreed upon payments using the Bloomberg B+ corporate yield curve as of the valuation date, applying
rates commensurate with the term to payment. The credit rating was determined utilizing Bloomberg’s default risk function for the
Company as of the respective acquisition valuation dates. The installment payment amounts and payment dates were based on the purchase
ag