Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 228

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 228
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adjusted overstated freight revenue and corresponding freight expenses for the three months ended March 31, 2023.

6. Inventory Adjustment

The Company failed to perform a proper
full physical inventory count.

As a part of the restatement process,
the Company performed a physical inventory count and corresponding rollback analysis. The Company identified discrepancies between recorded
and actual inventory levels.

To correct the error, the Company
adjusted its inventory records and reduced its reported inventory value as of December 31, 2023, to accurately reflect the findings.

7. Subsequent Measurement of
Available-for-Sale Securities

The Company incorrectly recorded unrealized
holding gains and losses for available-for-sale securities that should be excluded from earnings and reported in other comprehensive
income (loss).

As a part of the restatement process,
the Company performed a separate analysis related to subsequent measurement of available-for-sale securities in accordance with the relevant
guidance of ASC Topic 320, Investments – Debt Securities.

To correct the error, the Company
adjusted realized gain (loss) on investment and corresponding other comprehensive income (loss) for the three months ended March 31,
2023.

* Represents revision for immaterial
error correction. 

13

The following tables summarize the
effect of the restatement on each financial statement line item as of the dates indicated:

    Balance Sheet as of March 31, 2023 
    As Reported  
    Adjustment  
    As Restated  
    Reference
  
    Cash and cash equivalents 
    $10,597  
    $69  
    $10,666  
    *
  
    Investments 
     10,269  
     (69) 
     10,200  
    *
  
    Accounts receivable, net 
     11,915  
     (303) 
     11,612  
    4
  
    Deferred income taxes 
     1,205  
     (1,205) 
     —  
    3
  
    Inventory 
     5,666  
     (632) 
     5,034  
    6,8
  
    Prepaid corporate taxes 
     87  
     (51) 
     36  
    3
  
    Total current assets 
     41,523  
     (2,191) 
     39,332  
    3,4,6,8,*

    Int