Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 226

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 226
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 weakness in internal control related to the proper design and implementation
of certain controls over management’s formal review process that includes multiple levels of review as well as timely review of
accounts and reconciliations leading to material adjustments.

●We identified a material weakness in internal control related to the proper design and implementation
of certain controls over income tax provision and management’s review of the income tax provision.

●We did not design and maintain effective controls 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.

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