Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2891

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 8
Chunk 2891
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    Compensation expense 
     26  
     26 
  
    Unrealized gain/loss 
     3  
     3 
  
    Allowance for credit losses 
     167  
     44 
  
    UNICAP 
     30  
     27 
  
    Amortization 
     755  
     578 
  
    Total gross deferred tax assets 
     2,488  
     1,611 
  
    Less: Valuation allowance 
     (2,234) 
     (1,216)
  
    Net deferred tax assets 
     254  
     395 

    Deferred tax liabilities: 

    Lease liability 
     (208) 
     (349)
  
    Depreciation 
     (46) 
     (46)
  
    Total deferred tax liabilities 
     (254) 
     (395)

    Total deferred tax assets (liabilities) 
    $—  
    $— 

The Company has Federal and State net
operating loss (“NOLs”) carryforwards of approximately $3,987 and $4,791, respectively, as of December 31, 2024. The Federal
NOLs were generated after December 31, 2017 and have an infinite carryforward period but are subject to 80% deduction limitation based
upon pre-NOL deduction taxable income. State NOLs generated have various expiration rules and dates with the first amount of NOLs expiring
in 2028.

The utilization of the Company’s
net operating loss carryforwards and research tax credit carryovers could be subject to annual limitations under Section 382 and 383 of
the Internal Revenue Code of 1986, as amended (the “Code”), and similar state tax provisions, due to ownership change limitations
that may have occurred previously or that could occur in the future. These ownership changes limit the amount of net operating loss carryforwards
and other deferred tax assets that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change,
as defined by Section 382 and 383 of the Code, results from transactions increasing ownership of certain stockholders or public groups
in the stock of the corporation by more than 50 percent points over a three-year period. The Company has not completed an analysis of
an ownership change under Section 382 of the Code. To the extent that