Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 109

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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-03 will have on its disclosures.

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

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 nine months ended September 30, 2023 require restatement and should not
be relied upon.

The
following include descriptions of the significant adjustments to the Company’s previously reported September 30, 2023 financial
statements included in this quarterly report.

1. Business Acquisitions

The Company incorrectly accounted for
the Wildman Imprints former promotional products business division of Wildman Business Group, LLC, G.A.P. Promotions, LLC, Trend Promotional
Marketing Corporation (d/b/a Trend Brand Solutions), Premier Business Services, and T R Miller Co., Inc. (“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 accordance with ASC Topic 820, Fair Value Measurement.

As a part of the restatement process,
the Company performed a separate assessment of each acquisition in accordance with the relevant guidance of ASC Topic 805, Business Combinations,
and completed a purchase price allocation analysis, including the proper calculation of the fair value of the certain assets acquired
and liabilities assumed and the fair value of contingent earn-out payments.

To correct the error, the Company adjusted
the final purchase price accounting for inventory, identifiable intangibles, goodwill and contingent earn-out liabilities, including associated
mark-to-market adjustments subsequent to the acquisition dates.

13

STRAN & COMPANY,
INC.