Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1758

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 9
Chunk 1758
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 basis. The following material weaknesses were identified:

●There was a material weakness in our internal controls related to the proper
design and implementation of control over formal review, approval, and evaluation of complex accounting transactions associated with business
combinations.

●We identified a material weakness in internal control related to the proper
design and implementation of certain controls over management’s formal review process that includes multiple levels of review as
well as timely review of accounts and reconciliations leading to material adjustments.

●We identified a material weakness in internal control related to the proper
design and implementation of certain controls over income tax provision and management’s review of the income tax provision. 

●We did not design and maintain effective controls over financial reporting
for accounts receivable and unearned revenue, freight charges, and inventory and cost of sales accounts.

●We did not design and maintain effective controls over financial reporting
related to the proper presentation and disclosure for related party transactions.

●We did not effectively select and develop certain information technology
general controls related to access and change management controls that led to deficiencies in the design and operation of control activities.

Plan of Remediation of Material Weaknesses
in Internal Control Over Financial Reporting

As reported in this Annual Report on Form 10-K
for the fiscal year ended December 31, 2024, following the identification and communication of the material weaknesses described above,
management commenced remediation actions relating to these material weaknesses beginning in the fourth quarter of fiscal year 2024, as
follows:

●We utilized the services of external consultants for non-routine and/or technical accounting issues as
they arose.

●We improved our review process for complex accounting transactions by enhancing access to accounting literature,
engaging third-party professionals with whom to consult regarding complex accounting applications, and hired additional staff with the
requisite experience and training to supplement existing accounting professionals.

●Management, with the assistance of a third party, performed an evaluation
of the processes and procedures around our processes, internal control design gaps, and recommended process enhancements.

●We implemented enhancements and process improvements, including the design
and implementation of well-defined controls and related control attributes, through the recent launch of our new NetSuite enterprise resource
planning system in January 2025.

The material weaknesses identified above will
not be considered fully remediated until these additional controls and procedures have operated effectively for a sufficient period of
time and management has concluded, through testing, that these controls are effective. Our management will monitor the effectiveness of
our remediation plans and will make