Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 89

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 89
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2022. This change was primarily due to interest generated from investments. Our change in fair value of contingent earn-out liability was approximately$65 thousand for the year ended December 31, 2023, compared to approximately$180 thousand for the year ended December 31, 2022. This change was primarily due to an update to the estimated fair value of the remaining contingent earn-out liabilities related to business combinations. Our unrealized gain on investments was approximately$103 thousand for the year ended December 31, 2023, compared to our unrealized loss on investment of approximately$1 thousand for the year ended December 31, 2022. This change was primarily due to the recording of all investments at estimated fair value. Income Tax Provision Income tax provision reflects statutory tax rates in the jurisdictions in which we operate adjusted for permanent book/tax differences. 46 Income tax provision for the year ended December 31, 2023 was approximately $41 thousand compared to income tax provision of approximately $0.2 million for the year ended December 31, 2022. Income tax provision for the years ended December 31, 2023 and 2022 accounted for 11.9% and 6.8%, respectively, of loss before income taxes of approximately $0.3 million and approximately $3.3 million, respectively. For 2023 and 2022, the Company recorded an income tax provision comprised of state income taxes and a valuation allowance against its net deferred tax assets as well as a minimum state tax liability. The Company recorded a valuation allowance since it generated a deficit over a three-year cumulative period. Based on management’s expectations of future earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded in 2023. For further discussion of changes in the income tax provision, refer to Notes A and R to our financial statements beginning on page F-1 of this Annual Report on Form 10-K/A. Net Loss Our net loss for the year ended December 31, 2023 was approximately $0.4 million, compared to approximately $3.5 million for the year ended December 31, 2022. This change was primarily due to the increase in sales during 2023 from the acquisition of each of G.A.P. Promotions, Trend Brand Solutions, Premier NYC, and T R Miller to approximately $15.1 million in aggregate, from approximately $6.8 million from the acquisition of G.A.P. Promotions