Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 186

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 186
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 CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

There was income tax expense for the
years ended December 31, 2024 and 2023 of $5 and $41, respectively.

Uncertain Tax Positions

The Company adopted the standards for
Accounting for Uncertainty in Income Taxes, which required the Company to report any uncertain tax positions and to adjust its financial
statements for the impact thereof.  As of December 31, 2024 and 2023, the Company determined it had uncertain tax positions of $3,141
and $2,448, respectively. The Company believes the impact will not be material as it will be able to utilize net operating losses to offset
a majority of the risk. The Company’s accounting policy regarding interest expense associated with uncertain tax positions is included
as a part of income tax expense. The Company did not record interest expense for 2024 as the amount was nominal.

    Unrecognized tax benefits as of  December 31, 2022 
    $2,185 
  
    Gross increase in unrecognized tax benefits for prior year 
     263 
  
    Decreases due to settlements 
     — 
  
    Unrecognized tax benefits as of December 31, 2023 
    $2,448 
  
    Gross increase in unrecognized tax benefits for prior year 
     693 
  
    Decreases due to settlements 
     — 
  
    Unrecognized tax benefits as of December 31, 2024 
    $3,141 

R.SEGMENTS:

In its operation of the business, management,
including our chief operating decision maker, who is also our CEO, reviews certain financial information, including segment information
prepared on a basis that is consistent with GAAP. There is no expense or asset information that is supplemental to information disclosed
within the consolidated financial statements, that is regularly provided to the CODM to monitor and evaluate segment performance.

During the periods presented, we reported
our financial performance based on the following reportable segments: Stran & Company, Inc. (“Stran”) and Stran Loyalty
Solutions, LLC (“SLS”).

Our reportable segments are
described below.

The Stran segment’s business
is focused on being an outsourced marketing solutions and promotional products provider for a variety of customers and industries, working
closely with customers to develop sophisticated marketing programs that leverage Stran’s promotional products and loyalty incentive