Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 793

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 2
Chunk 793
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The company files its federal and states
tax returns in several jurisdictions. The state jurisdictions that are significant are as follows, Massachusetts, Kansas, Indiana, and
New York. The company is not currently under any audit and its statue of limitations is still open to the extent of the net operating
losses generated within each particular year.

For the years ended December 31, 2024
and 2023, the loss before income taxes was $(4,135) and $(344), respectively. The Company had an effective tax rate of (0.12)% and (11.92)%
for the years ended December 31, 2024 and 2023, respectively. The reconciliation of the statutory federal income tax rate to the Company’s
effective tax rate were as follows:

    December 31, 2024  
    December 31, 2023 
  
    U.S. statutory rate 
     21.00% 
     21.00%
  
    State taxes, net of federal 
     5.08% 
     (0.68)%
  
    Change in valuation allowance 
     (24.77)% 
     (27.45)%
  
    Meals and entertainment expenses 
     —% 
     (9.53)%
  
    Other permanent differences 
     (1.43)% 
     4.74%
  
    Effective tax rate 
     (0.12)% 
     (11.92)%

F-29

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The table below presents the effects
of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2024 and 2023:

    December 31, 2024  
    December 31, 2023 
  
    Deferred tax assets: 

    Net operating loss carryforwards 
    $1,051  
    $384 
  
    Charitable contributions 
     29  
     18 
  
    Lease liability 
     208  
     347 
  
    Stock compensation 
     219  
     184 
  
    Compensation expense 
     26  
     26 
  
    Unrealized gain/loss 
     3  
     3 
  
    Allowance for credit losses