Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 685

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 2
Chunk 685
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 2023. This change was primarily due to
an update to the estimated fair value of the remaining contingent earn-out liabilities related to business combinations. Our realized
gain on investments was approximately $208 thousand for the year ended December 31, 2024, compared to
approximately $103 thousand for the year ended December 31, 2023. This change was primarily
due to the sale of investments above their initial value.

Income Tax Provision

Income tax provision reflects statutory tax rates
in the jurisdictions in which we operate adjusted for permanent book/tax differences.

Income tax provision for the year ended December
31, 2024 was approximately $5 thousand compared to income tax provision of approximately $41 thousand for the year ended December 31,
2023. Income tax provision for the year ended December 31, 2024 accounted for 0.1% of loss before income taxes of approximately $4.1 million.
Income tax provision for the year ended December 31, 2023 accounted for 11.9% of income before income taxes of approximately $0.3 million.
As of December 31, 2024 and 2023, the Company recorded an income tax provision comprised of state income taxes and a valuation allowance
against its net deferred tax assets. The Company recorded a valuation allowance due to a cumulative loss over a three-year period.

Based on management’s expectations of future
earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded
in 2024.

Net Loss

Our net loss for the year ended December 31, 2024
was approximately $4.1 million, compared to approximately $0.4 million for the year ended December 31, 2023. This change was primarily
due to the increase in operating expenses along with the decrease in gross profit for the reasons described above.

Liquidity and Capital Resources 

As of December 31,
2024, we had cash and cash equivalents of approximately $9.4 million
and investments of approximately $8.9 million. We have financed our operations primarily
through cash generated from our initial public offering of common stock and warrants to purchase common stock in November 2021, our private
placement of common stock and warrants to purchase common stock in December 2021, and operations.

We believe that our current levels of cash will
be sufficient to meet our anticipated cash needs for our operations and cash payment obligations for both the 12 months ended December