Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 197

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 197
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 Company’s IPO. The Company also determined that on the date of the ownership change it was reasonable to conclude that it was in a net unrealized built-in gain position. The Company did not do any work to determine what realized built-in gains were available to increase its Section 382 limitation each year. Based on the Section 382 analysis, the Company has plenty of cumulative base Section 382 limitation available to utilize pre-ownership change 2021 net operating losses in 2023 as well as all of its post-ownership change net operating losses, which are not limited under Section 382.

F-39 STRAN & COMPANY, INC.
NOTES TO THE RESTATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of December 31, 2023 and 2022.

There was income tax expense for the years ended December 31, 2023 and 2022 of $ 41and $ 222, respectively.

Uncertain Tax Positions

As of December 31, 2023, the Company has three uncertain tax positions that total a gross amount of $ 2,448, which included an increase of $ 263, of which 80% is covered via NOLs. After the impact of NOLs, interest is immaterial. The Company expects to release its FIN 48 reserve as well as making corresponding adjustment to its NOLs in 2025.

|                                                                      |     | (Restated) |       |
|:---------------------------------------------------------------------|:----|:-----------|------:|
| Unrecognized tax benefits as of January 1, 2022                      |     | $          | 1,752 |
| Gross increase in unrecognized tax benefits for prior year positions |     |            |   433 |
| Decreases due to settlements                                         |     |            |     — |
| Unrecognized tax benefits as of December 31, 2022