Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 12

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part II, Item 8
Chunk 12
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 2021 and 2022 net operating loss carryforward balances. All tax entries
have been booked as of September 30, 2024 and 2023, to reflect the correct income tax provision and deferred tax asset/(liability) balances.

4. Related Party Presentation

Certain amounts relating to the accounts
receivable from related parties, previously reflected in Accounts Receivable, Net on the Company’s Balance Sheet, have been reclassified
to Accounts Receivable – 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 September 30, 2023, rather than reducing Unearned
Revenue for the customer deposits that were received prior to September 30, 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.

To correct the error, the Company adjusted
overstated freight revenue and corresponding freight expenses for the three and nine months ended September 30, 2023.

7. Inventory Adjustment

The Company failed to perform a proper
full physical inventory count.

As a part of the restatement process,
the Company performed a physical inventory count and corresponding rollback analysis. The Company identified discrepancies between recorded
and actual inventory levels.

14

STRAN & COMPANY,
INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

To correct the error, the Company adjusted
its inventory records and reduced its reported inventory value as of September 30, 2023, to accurately reflect the findings.

8. Subsequent Measurement of
Available-for-Sale Securities

The Company incorrectly recorded unrealized
holding gains and losses for available-for-sale securities that should be excluded from earnings and reported in other comprehensive income
(loss).

As a part of the restatement process,
the Company performed a separate analysis related to subsequent measurement of available-for-sale securities in accordance with the relevant
guid