Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 196

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 196
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uation allowance               |     |   |    (1,216 | ) |     |   |    (1,166 | ) |
| Net deferred tax assets                 |     |   |       395 |   |     |   |       253 |   |
| Deferred tax liabilities:               |     |   |           |   |     |   |           |   |
| Lease liability                         |     |   |      (349 | ) |     |   |      (210 | ) |
| Depreciation                            |     |   |       (46 | ) |     |   |       (43 | ) |
| Other                                   |     |   |         — |   |     |   |         — |   |
| Total deferred tax liabilities          |     |   |      (395 | ) |     |   |      (253 | ) |
| Total deferred tax assets (liabilities) |     | $ |         — |   |     | $ |         — |   |

The Company has Federal and State net operating loss (“NOLs”) carryforwards of approximately $ 1,683and $ 1,941, respectively, as of December 31, 2023. The Federal NOLs were generated after December 31, 2017 and have an infinite carryforward period but are subject to 80% deduction limitation based upon pre-NOL deduction taxable income. State NOLs generated have various expiration rules and dates with the first amount of NOLs expiring in 2028.

The utilization of the Company’s net operating loss carryforwards and research tax credit carryovers could be subject to annual limitations under Section 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), and similar state tax provisions, due to ownership change limitations that may have occurred previously or that could occur in the future. These ownership changes limit the amount of net operating loss carryforwards and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 and 383 of the Code, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50percent points over a three-year period. The Company has completed an analysis of an ownership change under Section 382 of the Code. The Section 382 analysis concluded that an ownership change occurred on November 12, 2021, the date of the