Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 147

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 3
Chunk 147
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 professionals.

●Management, with the assistance of a third party, continued to perform an evaluation of the processes
and procedures around our processes, internal control design gaps, and recommend process enhancements.

●We continued to implement enhancements and process improvements, including the design and implementation
of reporting systems relating to the January 2025 launch of our new NetSuite enterprise resource planning system.

The material weaknesses identified above will
not be considered fully remediated until these additional controls and procedures have operated effectively for a sufficient period of
time and management has concluded, through testing, that these controls are effective. Our management will monitor the effectiveness of
our remediation plans and will make changes management determines to be appropriate.

There were no changes in our internal control
over financial reporting during the three months ended June 30, 2025 that materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting, except as described above.

Inherent Limitation on the Effectiveness of Internal Control

The effectiveness of any system of internal control
over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing,
operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of
internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not
absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with our policies or procedures may deteriorate.
We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure that
such improvements will be sufficient to provide us with effective internal control over financial reporting.

41

PART II

OTHER INFORMATION

 ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various
lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. We are not currently aware of
any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating
results.

 ITEM 1A. RISK FACTORS.

There are no material changes from the risk factors
previously disclosed in Item 1A, “Risk Factors” of our Annual Report