Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 391

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 391
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 of this Quarterly Report on Form 10-Q.

 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable. 

 ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our
Chief Executive Officer and Chief Financial Officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Exchange Act) prior to the filing of this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure
controls and procedures were not effective due to the following material weaknesses in our internal control over financial reporting:

●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.

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●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.

Changes in Internal Control Over Financial
Reporting

Following the identification and communication
of the material weaknesses described above, management continued to implement the following remediation actions relating to these material
weaknesses during the three months ended June 30, 2025 as follows:

●We continued to utilize the services of external consultants for non-routine and/or technical accounting
issues as they arise.

●We continued to expand and improve 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
hiring additional staff