Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 555

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 555
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 our disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) prior to the filing of this Annual Report on Form 10-K. Based on
that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Annual
Report on Form 10-K, our disclosure controls and procedures were not effective due to the restatement of our previously issued
financial statements and corresponding material weaknesses described below.

Management’s Annual Report on Internal
Control over Financial Reporting

Management
is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rule 13a-15(f)
of the Exchange Act. Our internal control system is designed to provide reasonable assurance regarding the preparation and fair presentation
of financial statements for external purposes in accordance with generally accepted account principles. All internal control systems,
no matter how well designed, have inherent limitations and can provide only reasonable assurance that the objectives of the internal control
system are met.

Management
assessed the effectiveness of our internal control over financial reporting as of December 31, 2024. In making this assessment, management
used the framework set forth in the report entitled Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company’s internal
control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication,
and (v) monitoring.

During this
assessment, management identified material weaknesses in our internal control over financial reporting that are discussed further below.
As a result of the material weaknesses, management concluded that our internal control over financial reporting was not effective as of
December 31, 2024.

53

A material
weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of a company’s annual and interim financial statements will not be detected or prevented
on a timely basis. The following material weaknesses were identified:

●There was a material weakness in our internal controls related to the proper
design and implementation of control over formal review, approval, and evaluation of complex accounting transactions associated with business
combinations.

●We identified a material weakness in internal control related to the proper
design and implementation of certain