Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 90

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 90
---
 over financial reporting
for accounts receivable and unearned revenue, freight charges, and inventory and cost of sales accounts.

●We did not design and maintain effective controls over financial reporting
related to the proper presentation and disclosure for related party transactions.

●We did not effectively select and 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.

Plan of Remediation of Material Weaknesses
in Internal Control Over Financial Reporting

As reported in this Annual Report on Form 10-K
for the fiscal year ended December 31, 2024, following the identification and communication of the material weaknesses described above,
management commenced remediation actions relating to these material weaknesses beginning in the fourth quarter of fiscal year 2024, as
follows:

●We utilized the services of external consultants for non-routine and/or technical accounting issues as
they arose.

●We improved our review process for complex accounting transactions by enhancing access to accounting literature,
engaging third-party professionals with whom to consult regarding complex accounting applications, and hired additional staff with the
requisite experience and training to supplement existing accounting professionals.

●Management, with the assistance of a third party, performed an evaluation
of the processes and procedures around our processes, internal control design gaps, and recommended process enhancements.

●We implemented enhancements and process improvements, including the design
and implementation of well-defined controls and related control attributes, through the recent launch of our new NetSuite enterprise resource
planning system in January 2025.

The material weaknesses identified above will
not be considered fully remediated until these additional controls and procedures have operated effectively for a sufficient period of
time and management has concluded, through testing, that these controls are effective. Our management will monitor the effectiveness of
our remediation plans and will make changes management determines to be appropriate. If not remediated, these material weaknesses could
result in material misstatements to our annual or interim consolidated financial statements that may not be prevented or detected on a
timely basis or result in a delayed filing of required periodic reports. If we are unable to assert that our internal control over financial
reporting is effective, investors may lose confidence in the accuracy and completeness of our financial reports, the market price of our
common stock could be adversely affected, and we could become subject to litigation or investigations by Nasdaq, the SEC, or other regulatory
authorities, which could require additional financial and management resources.

This Annual
Report on Form 10-K does