Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 235

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 235
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 assets prior to any distributions being made to holders
of our common stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled to preferences over
holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to issue
debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other factors
beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders of
our securities must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return,
if any, they may be able to achieve from an investment in our securities.

We are authorized to issue “blank
check” preferred stock without stockholder approval, which could adversely impact the rights of holders of our securities.

Our Articles of Incorporation authorize us to
issue up to 50,000,000 shares of blank check preferred stock. Any preferred stock that we issue in the future may rank ahead of our securities
in terms of dividend priority or liquidation premiums and may have greater voting rights than our securities. In addition, such preferred
stock may contain provisions allowing those shares to be converted into shares of common stock, which could dilute the value of our securities
to current stockholders and could adversely affect the market price, if any, of our securities. In addition, the preferred stock could
be utilized, under certain circumstances, as a method of discouraging, delaying or preventing a change in control of our company. Although
we have no present intention to issue any shares of authorized preferred stock, there can be no assurance that we will not do so in the
future.

35

If our securities become subject to the
penny stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems,
provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system.
If we do not retain a listing on Nasdaq or another national securities exchange and if the price of our securities is less than $5.00,
our securities could be deemed a penny stock. The penny stock rules require a