Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 14

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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Compensation—Stock Compensation) or other
guidance. The ASU aims to ensure consistency and transparency in the accounting for these awards by providing clearer criteria and illustrative
examples.

The guidance is effective for fiscal
years and interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the timing
and impacts of adoption of this ASU.

2024-03 - Income Statement - Reporting
Comprehensive Income - Expense Disaggregation Disclosure

In November 2024, the FASB issued ASU
2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses (“ASU 2024-03”), which requires the disaggregation, in the notes to the financial statements, of certain
cost and expense captions presented on the face of the Company’s Statement of Operations, to provide enhanced transparency to investors.
The update may be applied either prospectively or retrospectively. ASU 2024-03 is effective for fiscal years beginning after December
15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted.

The Company is currently evaluating
the impact ASU 2024-03 will have on its disclosures.

16.Subsequent Events - Management has evaluated events occurring after the balance sheet date through the
date on which the financial statements were filed.

11

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

B.RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS:

In
connection with the re-audit of the financial statements of the Company, as of and for the fiscal years ended December 31, 2023 and 2022,
which were previously audited by the Company’s prior independent registered public accounting firm, BF Borgers CPA PC, the Company
identified certain accounting errors relating to compliance with U.S. GAAP in connection with the Company’s accounting of certain
assets and liabilities as well as acquisition accounting. As a result of the re-audit, the Audit Committee, in consultation with the Company’s
management, concluded that the Company’s previously issued unaudited consolidated financial statements and the notes thereto as
of and for the three and six months ended June 30, 2023 require restatement and should not be relied
upon.