Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 90

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 90
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 estimates are developed as part of our long-term planning process based on assumed market segment
growth rates and our assumed market segment share, estimated costs based on historical data and various internal estimates. Projected
cash flows are then discounted to a present value employing a discount rate that properly accounts for the estimated market weighted-average
cost of capital, as well as any risk unique to the subject cash flows. The market approach is based on weighting the financial multiples
of comparable companies and applying a control premium. A reporting unit’s carrying value represents the assignment of various assets
and liabilities, excluding certain corporate assets and liabilities, such as cash and debt.

We assess the impairment of long-lived assets,
including purchased property and equipment, right-of-use assets, and intangible assets, whenever events or changes in circumstances indicate
that the carrying value of such assets may not be recoverable. Factors we consider important which could trigger an impairment review
include: (i) significant under performance relative to historical or projected future operating results, (ii) significant changes in
the manner of our use of the acquired assets or the strategy for our overall business, or (iii) significant negative industry or economic
trends. The process of evaluating the potential impairment of long-lived assets under the accounting guidance on property and equipment
and intangible assets is also highly subjective and requires significant judgment. In order to estimate the fair value of long-lived
assets, we typically make various assumptions about the future prospects of our business or the part of our business to which the long-lived
assets relate. We also consider market factors specific to the business and estimate future cash flows to be generated by the business,
which requires significant judgment as it is based on assumptions about market demand for our products over a number of future years.
Based on these assumptions and estimates, we determine whether we need to take an impairment charge to reduce the value of the long-lived
assets stated on our consolidated balance sheets to reflect their estimated fair value. Assumptions and estimates about future values
and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors,
such as the real estate market, industry and economic trends, and internal factors, such as changes in our business strategy and our
internal forecasts. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate,
changes in assumptions and estimates could materially impact our reported financial results.

37

Contingent Earn-Out Liabilities

We measure our contingent earn-out liabilities
at fair value on