Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2577

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 13
Chunk 2577
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 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 
     —% 
     (9.53)%
  
    Other permanent differences 
     (1.43)% 
     4.74%
  
    Effective tax rate 
     (0.12)% 
     (11.92)%

F-29

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The table below presents the effects
of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2024 and 2023:

    December 31, 2024  
    December 31, 2023 
  
    Deferred tax assets: 

    Net operating loss carryforwards 
    $1,051  
    $384 
  
    Charitable contributions 
     29  
     18 
  
    Lease liability 
     208  
     347 
  
    Stock compensation 
     219  
     184 
  
    Compensation expense 
     26  
     26 
  
    Unrealized gain/loss 
     3  
     3 
  
    Allowance for credit losses 
     167  
     44 
  
    UNICAP 
     30  
     27 
  
    Amortization 
     755  
     578 
  
    Total gross deferred tax assets 
     2,488  
     1,611 
  
    Less: Valuation allowance 
     (2,234) 
     (1,216)
  
    Net deferred tax assets 
     254  
     395 

    Deferred tax liabilities: