Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 216

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 216
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3, the Company had net deposits totaling approximately $3.0 million and $0.9 million, respectively.

Our other principal cash payment obligations have
consisted principally of obligations under the Revolving Line of Credit. As stated above, as of September 30, 2024 and December 31, 2023,
we had not drawn any funds from the Revolving Line of Credit under the Loan Documents.

Critical Accounting Estimates 

We prepare our financial statements in accordance
with U.S. GAAP. The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue, costs and expenses, and related 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.

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets, and contingent earn-out liabilities have the greatest potential impact
on our financial statements. 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 1 of this Quarterly Report
on Form 10-Q.

45

Valuation of Goodwill and Indefinite-Lived
Intangible Assets and Long-Lived Intangible Assets

We perform an annual impairment review of our
goodwill and indefinite-lived intangible assets 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 and indefinite-lived intangible assets 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 units are less than their carrying amounts.
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