Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 173

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 173
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 the year deferred tax asset/(liability) balances. With respect to improper methods of tax accounting, the Company recorded an uncertain tax position (“FIN 48”) reserve for each of these items and will correct the improper methods of tax accounting by filing an automatic method change in its 2024 U.S. federal income tax return, which will be filed in 2025. The Company generated tax losses in 2021 and 2022, these losses were able to offset the effects of the improper methods for both 2021 and 2022. In addition, the Company plans to amend its 2023 U.S. federal income tax return, which will include a statement explaining additional adjustments such as charitable contributions and stock option expense to its 2021 and 2022 net operating loss carryforward balances. All tax entries have been booked as of December 31, 2023, and 2022, to reflect the correct income tax provision and deferred tax asset/(liability) balances. The Company recorded a valuation allowance as well in 2022 as the Company was in a cumulative deficit at that time.

F-15 STRAN & COMPANY, INC.
NOTES TO THE RESTATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts) 4. Related Party Presentation Certain amounts relating to the accounts receivable from related parties, sales to related parties, and cost of sales to related parties, previously reflected in Accounts Receivable, Net, Sales, and Cost of Sales on the Company’s Balance Sheet and Statement of Earnings, have been reclassified to Accounts receivable – related parties, Sales – related parties, and Cost of sales – related parties. These reclassifications had no impact on the previously reported net earnings, cash flows or shareholders’ equity. 5. Accounts Receivable and Unearned Revenue Adjustment The Company incorrectly recorded certain amounts in Accounts Receivable for products that were shipped but not billed as of December 31, 2023, rather than reducing Unearned Revenue for the customer deposit that was received prior to December 31, 2023. As a part of the restatement process, the Company performed reconciliations of unbilled receivables and unearned revenue and adjusted overstated Accounts Receivable and Unearned Revenue balances. 6. Sales Adjustment The Company incorrectly recognized Sales relating to freight charges for certain orders. As a part of the restatement process, the Company conducted a thorough analysis of sales including freight charges. Multiple reviews were carried out to ensure all potential errors were addressed