Company: SWAGW
Filing Date: 2025-01-22
Form Type: 10-K/A
Source: 0001213900-25-005516
Chunk: 62

Company: Stran & Company, Inc.
Filing Date: 2025-01-22
Form: 10-K/A
Chunk 62
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 our financial results or prevent fraud, and investor confidence and the market price of our shares may be adversely affected. To implement Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), the SEC adopted rules requiring public companies to include a report of management on the company’s internal control over financial reporting in their annual reports on Form 10-K. A report of our management is included under Item 9A of this Annual Report on Form 10-K/A. A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Our management has identified the following material weaknesses in our internal control over financial reporting:

| ● | 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 controls over management’s formal review process that includes multiple                 
 levels of review as well as timely review of accounts and reconciliations leading to material      
 adjustments.                                                                                       |

| ● | We                                                                                                 
 identified a material weakness in internal control related to the proper design and implementation 
 of certain controls over income tax provision and management’s review of the income                
 tax provision.                                                                                     |

| ● | We                                                                                              
 did not design and maintain effective controls over financial reporting for accounts receivable 
 and unearned revenue, freight charges, and inventory and cost of sales accounts.                |

| ● | We                                                                                            
 did not design and maintain effective controls over financial reporting related to the proper 
 presentation and disclosure for related party transactions.                                   |

| ● | We                                                                                             
 did not effectively select and develop certain information technology general controls related 
 to access and change management controls that led to deficiencies in the design and operation  
 of control activities.                                                                         |

We have commenced a plan of remediation to remedy the material weaknesses. However, the implementation of these measures may not fully address the material weaknesses in our internal control over financial reporting. Our failure to address any control deficiency could result in inaccuracies in our financial statements and could also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis. Moreover, effective internal control