Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2578

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 13
Chunk 2578
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 Lease liability 
     (208) 
     (349)
  
    Depreciation 
     (46) 
     (46)
  
    Total deferred tax liabilities 
     (254) 
     (395)

    Total deferred tax assets (liabilities) 
    $—  
    $— 

The Company has Federal and State net
operating loss (“NOLs”) carryforwards of approximately $3,987 and $4,791, respectively, as of December 31, 2024. The Federal
NOLs were generated after December 31, 2017 and have an infinite carryforward period but are subject to 80% deduction limitation based
upon pre-NOL deduction taxable income. State NOLs generated have various expiration rules and dates with the first amount of NOLs expiring
in 2028.

The utilization of the Company’s
net operating loss carryforwards and research tax credit carryovers could be subject to annual limitations under Section 382 and 383 of
the Internal Revenue Code of 1986, as amended (the “Code”), and similar state tax provisions, due to ownership change limitations
that may have occurred previously or that could occur in the future. These ownership changes limit the amount of net operating loss carryforwards
and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change,
as defined by Section 382 and 383 of the Code, results from transactions increasing ownership of certain stockholders or public groups
in the stock of the corporation by more than 50 percent points over a three-year period. The Company has not completed an analysis of
an ownership change under Section 382 of the Code. To the extent that a study is completed and an ownership change is deemed to occur,
the Company’s net operating losses and tax credits could be limited.

In assessing the realization of deferred
tax assets, management considers whether it is more likely than not that some portion or all the deferred income tax assets will not be
realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities,
projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management
has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the