Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1356

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1356
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 all potentially dilutive shares outstanding was anti-dilutive.

F-28

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Q.INCOME TAX PROVISION:

Income taxes are provided for the tax
effects of transactions reported in the financial statements and consist of taxes currently due. Deferred taxes relate to differences
between the basis of assets and liabilities for financial and income tax reporting which will be either taxable or deductible when the
assets or liabilities are recovered or settled.

The provision for income taxes consisted
of the following:

    December 31, 2024  
    December 31, 2023 
  
    Current provision 

    Federal 
    $—  
    $33 
  
    State 
     5  
     8 
  
    Total current provision 
     5  
     41 

    Deferred provision 

    Federal 
     —  
     — 
  
    State 
     —  
     — 
  
    Total deferred provision 
     —  
     — 

    Provision for income taxes 
    $5  
    $41 

The company files its federal and states
tax returns in several jurisdictions. The state jurisdictions that are significant are as follows, Massachusetts, Kansas, Indiana, and
New York. The company is not currently under any audit and its statue of limitations is still open to the extent of the net operating
losses generated within each particular year.

For the years ended December 31, 2024
and 2023, the loss before income taxes was $(4,135) and $(344), respectively. The Company had an effective tax rate of (0.12)% and (11.92)%
for the years ended December 31, 2024 and 2023, respectively. The reconciliation of the statutory federal income tax rate to the Company’s
effective tax rate were as follows:

    December 31, 2024  
    December 31, 2023 
  
    U.S. statutory rate 
     21.00% 
     21.00%
  
    State taxes, net of federal 
     5.08% 
     (0.68)%
  
    Change in valuation allowance 
     (24.77)% 
     (27.45)%
  
    Meals and entertainment expenses 
     —%