Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 294

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 294
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 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 and six months ended June 30, 2023. 

13

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

9. Unearned Revenue and Sales Adjustment

The Company failed to recognize certain
amounts as Sales for the products that were included in Unearned Revenue but shipped as of June 30, 2023. In addition, the Company
did not reduce the inventory balance for the products that were shipped as of June 30, 2023. As a part of the restatement process,
the Company performed reconciliations of unearned revenue and adjusted overstated Unearned Revenue and Inventory balances for the products
that were shipped as of June 30, 2023.

*Represents revision for immaterial error correction.

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

    Balance Sheet as of June 30, 2023 
    As Reported  
    Adjustment  
    As Restated  
    Reference 
  
    Cash and cash equivalents 
    $15,271  
    $66  
    $15,337  
      *
  
    Investments 
     10,278  
     (67) 
     10,211  
     *
  
    Accounts receivable, net 
     13,959  
     (65) 
     13,894  
     4,5 
  
    Accounts receivable – related parties 
     —  
     130  
     130  
     4 
  
    Deferred income taxes 
     1,542  
     (1,542) 
     —  
     3 
  
    Inventory 
     5,821  
     (558) 
     5,263  
     7,9 
  
    Prepaid corporate taxes 
     87  
     (87) 
     —  
     3 
  
    Total current assets 
     49,630  
     (2,123)