Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 225

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 225
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years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025, with early adoption
permitted. The Company is currently evaluating the timing and impacts of adoption of this ASU.

2024-01 – Compensation –
Stock Compensation (Topic 718)

In March 2024, the Financial Accounting
Standards Board (FASB) issued ASU 2024-01, which clarifies the accounting for profits interest awards. This update provides guidance
on determining whether a profits interest or similar award falls within the scope of ASC 718 (Compensation—Stock Compensation)
or other guidance. The ASU aims to ensure consistency and transparency in the accounting for these awards by providing clearer criteria
and illustrative examples.

The guidance is effective for fiscal
years and interim periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the timing
and impacts of adoption of this ASU.

2024-03 - Income Statement - Reporting
Comprehensive Income - Expense Disaggregation Disclosure

In November 2024, the FASB issued ASU
2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income
Statement Expenses (“ASU 2024-03”), which requires the disaggregation, in the notes to the financial statements, of certain
cost and expense captions presented on the face of the Company’s Statement of Operations, to provide enhanced transparency to investors.
The update may be applied either prospectively or retrospectively. ASU 2024-03 is effective for fiscal years beginning after December
15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted.

The Company is currently evaluating
the impact ASU 2024-03 will have on its disclosures.

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

11

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