Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 227

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 227
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in our previously issued financial statements as of and for the fiscal years ended December 31, 2023 and 2022 included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023 that was filed by the Company with the SEC on March 28, 2024, and filed
the restated financial statements with an amended Annual Report on Form 10-K/A for the year ended December 31, 2023 on January 22, 2025.
The restatement has resulted in substantial costs in the form of accounting, legal fees, and similar professional fees, in addition to
the substantial diversion of time and attention of our senior management and members of our accounting team in preparing the restatement.

Further, as a result of the restatement, we face
the potential for litigation or other disputes which may include, among others, claims invoking the federal and state securities laws,
contractual claims or other claims arising from the restatement and the preparation of our financial statements. As of the date of this
filing, we have no knowledge of any such litigation or dispute resulting from the restatement. However, we can provide no assurance that
litigation or disputes will not arise in the future. Any such litigation or dispute, whether successful or not, could have a material
adverse effect on our business, results of operations and financial condition.

We may recognize impairment charges, which
could adversely affect our financial condition and results of operations.

We assess our goodwill, intangible assets and
long-lived assets for impairment when required by generally accepted accounting principles in the United States (“U.S. GAAP”).
These accounting principles require that we record an impairment charge if circumstances indicate that the asset carrying values exceed
their estimated fair values. The estimated fair value of these assets is impacted by general economic conditions in the locations in which
we operate. Deterioration in these general economic conditions may result in a number of adverse consequences, including: Declining revenue,
which can lead to excess capacity and declining operating cash flow; reductions in management’s estimates for future revenue and
operating cash flow growth; and increases in borrowing rates and other deterioration in factors that impact our weighted average cost
of capital. If our assessment of goodwill, intangible assets or long-lived assets indicates an impairment of the carrying value for which
we recognize an impairment charge, this may adversely affect our financial condition and results of operations.

Environmental regulations may impact our
future operating results.

We are subject