Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1401

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 7
Chunk 1401
---
 assurance that the objectives of the internal control
system are met.

Management
assessed the effectiveness of our internal control over financial reporting as of December 31, 2024. In making this assessment, management
used the framework set forth in the report entitled Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company’s internal
control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication,
and (v) monitoring.

During this
assessment, management identified material weaknesses in our internal control over financial reporting that are discussed further below.
As a result of the material weaknesses, management concluded that our internal control over financial reporting was not effective as of
December 31, 2024.

53

A material
weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of a company’s annual and interim financial statements will not be detected or prevented
on a timely basis. The following material weaknesses were identified:

●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.

Plan of Remediation of Material Weaknesses
in Internal Control Over Financial Reporting

As reported in this Annual Report on Form 10-K
for the fiscal year ended December 31, 2024, following the identification