Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 17

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 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 six months ended June 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.

To correct the error, the Company adjusted
its inventory records and reduced its reported inventory value as of June 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
guidance of ASC Topic 320, Investments – Debt Securities.

To correct the error, the Company adjusted
realized gain (loss) on investment and corresponding other comprehensive income (loss) for the three and six months ended June 30, 2023. 

13

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

9. Unearned Revenue and Sales Adjustment

The Company failed to recognize certain
amounts as Sales for the products that were included in Unearned Revenue but shipped as of June 30, 2023. In addition, the Company
did not reduce the inventory balance for the products that were shipped as of June 30, 2023. As a part of the restatement process,
the Company performed reconciliations of unearned revenue and adjusted overstated Unearned Revenue and Inventory balances for the products
that were shipped as of June 30, 2023.

*Represents revision for immaterial error correction.

The following tables summarize the
effect of the restatement on each financial statement line item as of the dates indicated:

    Balance Sheet as of June 30, 2023 
    As Reported  
    Adjustment  
    As Restated  
    Reference 
  
    Cash