Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 92

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 92
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 to the proper design and implementation of certain controls over
                                            management’s formal review process that includes multiple levels of review as well
                                            as timely review of accounts and reconciliations leading to material adjustments.

●We identified a material weakness
                                            in internal control related to the proper design and implementation of certain controls over
                                            income tax provision and management’s review of the income tax provision.

●We did not design and maintain effective
                                            controls over financial reporting for accounts receivable and unearned revenue, freight charges,
                                            and inventory and cost of sales accounts.

●We did not design and maintain effective
                                            controls over financial reporting related to the proper presentation and disclosure for related
                                            party transactions.

●We did not effectively select and
                                            develop certain information technology general controls related to access and change management
                                            controls that led to deficiencies in the design and operation of control activities.

38

Changes in Internal Control Over Financial
Reporting

Following the identification and communication
of the material weaknesses described above, management continued to implement the following remediation actions relating to these material
weaknesses during the three months ended March 31, 2024, as follows:

●We continued to utilize the services of external consultants for non-routine and/or technical accounting
issues as they arise.

●We continued to expand and improve our review process for complex accounting transactions by enhancing
access to accounting literature, engaging third-party professionals with whom to consult regarding complex accounting applications, and
hiring additional staff with the requisite experience and training to supplement existing accounting 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 through preparation for 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 March 31, 2024 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