Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 13

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 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 in which the financial statements were filed.

11

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
months ended March 31, 2023 require restatement and should not be relied upon.

The following include descriptions
of the significant adjustments to the Company’s previously reported March 31, 2023 financial statements included in this quarterly
report.

1. Business Acquisitions

The Company incorrectly accounted
for the Wildman, GAP, Trend, Premier and T.R. Miller acquisitions (“Acquisitions”) as asset acquisitions that would properly
be accounted for as business combinations in accordance with ASC Topic 805, Business Combinations.

The Company improperly determined
the fair value of certain assets acquired and liabilities assumed and the fair value of contingent earn-out payments, which was part
of the total consideration, in