Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 147

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 4
Chunk 147
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ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our
Chief Executive Officer and Chief Financial Officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Exchange Act) prior to the filing of this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure
controls and procedures were not effective due to the following material weaknesses in our internal control over financial reporting:

●There was a material weakness in our internal controls related to the proper design and implementation
of control over formal review, approval, and evaluation of complex accounting transactions associated with business combinations.

●We identified a material weakness in internal control related 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.

41

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 June 30, 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