Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 50

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 50
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 and members of our accounting team in preparing the restatement.

Further, as a result of the restatement, we face
the potential for litigation or other disputes which may include, among others, claims invoking the federal and state securities laws,
contractual claims or other claims arising from the restatement and the preparation of our financial statements. As of the date of this
filing, we have no knowledge of any such litigation or dispute resulting from the restatement. However, we can provide no assurance that
litigation or disputes will not arise in the future. Any such litigation or dispute, whether successful or not, could have a material
adverse effect on our business, results of operations and financial condition.

We may recognize impairment charges, which
could adversely affect our financial condition and results of operations.

We assess our goodwill, intangible assets and
long-lived assets for impairment when required by generally accepted accounting principles in the United States (“U.S. GAAP”).
These accounting principles require that we record an impairment charge if circumstances indicate that the asset carrying values exceed
their estimated fair values. The estimated fair value of these assets is impacted by general economic conditions in the locations in which
we operate. Deterioration in these general economic conditions may result in a number of adverse consequences, including: Declining revenue,
which can lead to excess capacity and declining operating cash flow; reductions in management’s estimates for future revenue and
operating cash flow growth; and increases in borrowing rates and other deterioration in factors that impact our weighted average cost
of capital. If our assessment of goodwill, intangible assets or long-lived assets indicates an impairment of the carrying value for which
we recognize an impairment charge, this may adversely affect our financial condition and results of operations.

Environmental regulations may impact our
future operating results.

We are subject to extensive and changing federal,
state and foreign laws and regulations establishing health and environmental quality standards, and may be subject to liability or penalties
for violations of those standards. We may be subject to future liabilities or obligations as a result of new or more stringent interpretations
of existing laws and regulations. In addition, we may have liabilities or obligations in the future if we discover any environmental contamination
or liability at any of our facilities, or at facilities we may acquire.

If we are unable to accurately predict our
future tax liabilities, become subject to increased levels of taxation or our tax contingencies are unfavorably resolved, our results
of operations and financial condition could be adversely affected.

Changes in tax laws or regulations in