Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 49

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 49
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 develop certain information technology general controls related to access
and change management controls that led to deficiencies in the design and operation of control activities.

We have commenced a plan of remediation to remedy
the material weaknesses. However, the implementation of these measures may not fully address the material weaknesses in our internal control
over financial reporting. Our failure to address any control deficiency could result in inaccuracies in our financial statements and could
also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis. Moreover,
effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results
of operations and prospects, as well as the trading price of our shares, may be adversely affected.

Increases in the cost of employee benefits
could impact our financial results and cash flow.

Our expenses relating to employee health benefits
are significant. Unfavorable changes in the cost of such benefits could impact our financial results and cash flow. Healthcare costs have
risen significantly in recent years, and recent legislative and private sector initiatives regarding healthcare reform could result in
significant changes to the U.S. healthcare system. While the Company has various cost control measures in place and employs an outside
consultant to review larger claims, employee health benefits have been and are expected to continue to be a significant cost to the Company.
Medical costs will continue to be a significant expense to the Company and may increase due to factors outside the Company’s control.

30

We have restated our financial statements.
The restatement has consumed a significant amount of management time and resources and may continue to do so. In addition, the restatement
may subject us to a number of additional risks and uncertainties, including the increased possibility of legal proceedings and could adversely
impact our operations.

We have restated certain financial information
in our previously issued financial statements as of and for the fiscal years ended December 31, 2023 and 2022 included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023 that was filed by the Company with the SEC on March 28, 2024, and filed
the restated financial statements with an amended Annual Report on Form 10-K/A for the year ended December 31, 2023 on January 22, 2025.
The restatement has resulted in substantial costs in the form of accounting, legal fees, and similar professional fees, in addition to
the substantial diversion of time and attention of our senior management