Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2892

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 8
Chunk 2892
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 a study is completed and an ownership change is deemed to occur,
the Company’s net operating losses and tax credits could be limited.

In assessing the realization of deferred
tax assets, management considers whether it is more likely than not that some portion or all the deferred income tax assets will not be
realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities,
projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management
has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application
of a full valuation allowance as of December 31, 2024 and 2023.

F-30

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

There was income tax expense for the
years ended December 31, 2024 and 2023 of $5 and $41, respectively.

Uncertain Tax Positions

The Company adopted the standards for
Accounting for Uncertainty in Income Taxes, which required the Company to report any uncertain tax positions and to adjust its financial
statements for the impact thereof.  As of December 31, 2024 and 2023, the Company determined it had uncertain tax positions of $3,141
and $2,448, respectively. The Company believes the impact will not be material as it will be able to utilize net operating losses to offset
a majority of the risk. The Company’s accounting policy regarding interest expense associated with uncertain tax positions is included
as a part of income tax expense. The Company did not record interest expense for 2024 as the amount was nominal.

    Unrecognized tax benefits as of  December 31, 2022 
    $2,185 
  
    Gross increase in unrecognized tax benefits for prior year 
     263 
  
    Decreases due to settlements 
     — 
  
    Unrecognized tax benefits as of December 31, 2023 
    $2,448 
  
    Gross increase in unrecognized tax benefits for prior year 
     693 
  
    Decreases due to settlements 
     — 
  
    Unrecognized tax benefits as of December 31, 2024 
    $3,141 

R.SEGMENTS: