# EDGAR Filing Document

**Accession Number:** 0001555972
**File Stem:** 0001410578-23-000032
**Filing Date:** 2023-1
**Character Count:** 63639
**Document Hash:** 31b4e1623c62a5c2cfa6a618b2aa03e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-23-000032.hdr.sgml**: 20230119

**ACCESSION NUMBER**: 0001410578-23-000032

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 35

**CONFORMED PERIOD OF REPORT**: 20220930

**FILED AS OF DATE**: 20230119

**DATE AS OF CHANGE**: 20230119

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STERLING CONSOLIDATED Corp
- **CENTRAL INDEX KEY:** 0001555972
- **STANDARD INDUSTRIAL CLASSIFICATION:** GASKETS, PACKAGING AND SEALING DEVICES & RUBBER & PLASTIC HOSE [3050]
- **IRS NUMBER:** 451840913
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-183246
- **FILM NUMBER:** 23536100

**BUSINESS ADDRESS:**
- **STREET 1:** 1105 GREEN GROVE ROAD
- **CITY:** NEPTUNE
- **STATE:** NJ
- **ZIP:** 07753
- **BUSINESS PHONE:** 732 918 8004

**MAIL ADDRESS:**
- **STREET 1:** 1105 GREEN GROVE ROAD
- **CITY:** NEPTUNE
- **STATE:** NJ
- **ZIP:** 07753

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[**Table of Contents**](#TOC)

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended September 30, 2022

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from _______ to _______.

Commission File Number: **333-183246**

**STERLING CONSOLIDATED CORP.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **45-1840913** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

**1105 Green Grove Road**

**Neptune, New Jersey 07753**

(Address of principal executive offices)

**(732) 918-8004**

(Registrant's telephone number, including area code)

**N/A**

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

---

| | |
|:---|:---|
| Large accelerated filer ☐  | Accelerated filer ☐  |
| Non-accelerated filer ☒ | Smaller reporting company ☒  |
|  | Emerging growth company ☐  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 19, 2023 there were 47,284,689 shares of common stock, $0.001 par value issued and outstanding.

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common | STCC | OTCMarkets.com Pink Current |

---

------

[**Table of Contents**](#TOC)

**STERLING CONSOLIDATED CORP.**

**TABLE OF CONTENTS**

**FORM 10-Q REPORT**

**September 30, 2022**

---

| | | |
|:---|:---|:---|
|  |  | **Page** <br>**Number** |
| [**PART I - FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_915227) | [**PART I - FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_915227) | 3 |
| [Item 1.](#Item1FinancialStatements_401542) | [Financial Statements.](#Item1FinancialStatements_401542) | 3 |
| [Item 2.](#Item2ManagementsDiscussionandAnalysisofF) | [Management's Discussion and Analysis of Financial Condition and Results of Operations.](#Item2ManagementsDiscussionandAnalysisofF) | 10 |
| [Item 3.](#Item3QuantitativeandQualitativeDisclosur) | [Quantitative and Qualitative Disclosures About Market Risk.](#Item3QuantitativeandQualitativeDisclosur) | 15 |
| [Item 4.](#Item4ControlsandProcedures_116527) | [Controls and Procedures.](#Item4ControlsandProcedures_116527) | 15 |
| [**PART II - OTHER INFORMATION**](#PARTIIOTHERINFORMATION_8109) | [**PART II - OTHER INFORMATION**](#PARTIIOTHERINFORMATION_8109) | 16 |
| [Item 1.](#Item1LegalProceedings_817983) | [Legal Proceedings.](#Item1LegalProceedings_817983) | 16 |
| [Item 1A.](#Item1ARiskFactors_15101) | [Risk Factors.](#Item1ARiskFactors_15101) | 16 |
| [Item 2.](#Item2UnregisteredSalesofEquitySecurities) | [Unregistered Sales of Equity Securities and Use of Proceeds.](#Item2UnregisteredSalesofEquitySecurities) | 16 |
| [Item 3.](#Item3DefaultsUponSeniorSecurities_370215) | [Defaults Upon Senior Securities.](#Item3DefaultsUponSeniorSecurities_370215) | 16 |
| [Item 4.](#Item4MineSafetyDisclosures_284874) | [Mine Safety Disclosures](#Item4MineSafetyDisclosures_284874) | 16 |
| [Item 5.](#Item5OtherInformation_975147) | [Other Information.](#Item5OtherInformation_975147) | 16 |
| [Item 6.](#Item6Exhibits_830063) | [Exhibits.](#Item6Exhibits_830063) | 17 |
| [**SIGNATURES**](#SIGNATURES_323205) | [**SIGNATURES**](#SIGNATURES_323205) | 18 |

---

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### Item 1. Financial Statements.

#### STERLING CONSOLIDATED CORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **Current assets** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $117618 | $569281 |
| &nbsp;&nbsp;Account receivable, net | 3128466 | 1474570 |
| &nbsp;&nbsp;Inventory, net | 4090300 | 3352663 |
| &nbsp;&nbsp;Notes receivable and other current assets | 55674 | 171674 |
| **Total current assets** | 7392058 | 5568188 |
| &nbsp;&nbsp;Property and equipment, net | 812781 | 918115 |
| &nbsp;&nbsp;Intangible assets, net | 73784 | 77284 |
| &nbsp;&nbsp;Deferred tax asset | 172252 | 199655 |
| **Total assets** | $8450875 | $6763242 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;Accounts payable and accrued expenses | $3063985 | $1422031 |
| &nbsp;&nbsp;Line of credit | 895627 | 401053 |
| &nbsp;&nbsp;Other liabilities | 47776 | 50332 |
| &nbsp;&nbsp;Current portion of long-term notes payable, rel. party | 52702 | 52702 |
| &nbsp;&nbsp;Current portion of long-term notes payable | 36554 | 39858 |
| **Total current liabilities** | 4096644 | 1965976 |
| **Other liabilities** |  |  |
| &nbsp;&nbsp;Long-term notes payable, related party | 246343 | 767159 |
| &nbsp;&nbsp;Long-term notes payable | 1668672 | 1691728 |
| **Total other liabilities** | 1915015 | 2458887 |
| **Total liabilities** | 6011659 | 4424863 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued |  |  |
| &nbsp;&nbsp;Common stock, $0.001 par value; 200,000,000 shares authorized, 47,284,689 shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 47285 | 47285 |
| &nbsp;&nbsp;Additional paid-in capital | 2569249 | 2569249 |
| &nbsp;&nbsp;Common stock subscribed | 93000 | 93000 |
| &nbsp;&nbsp;Accumulated deficit | (270318) | (371155) |
| **Total stockholders' equity** | 2439216 | 2338379 |
| **Total liabilities and stockholders' equity** | $8450875 | $6763242 |

---

See accompanying notes to condensed consolidated financial statements

[**Table of Contents**](#TOC)

#### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended**  | **For the Three Months Ended**  | **For the Nine Months Ended**  | **For the Nine Months Ended**  |
|  | **September 30,**  | **September 30,**  | **September 30,**  | **September 30,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;O-rings and rubber product sales | $4370823 | 2508935 | $10880506 | 7269029 |
| &nbsp;&nbsp;Freight services | 357195 | 132041 | 618290 | 370186 |
| **Total revenues** | 4728018 | $2640976 | 11498796 | 7639215 |
| **Cost of sales** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of goods | 3768974 | 1670126 | 8838253 | 5199353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services | 335767 | 163088 | 668119 | 460913 |
| **Total cost of sales** | 4104741 | 1833214 | 9506372 | 5660266 |
| **Gross profit** | 623277 | 807762 | 1992424 | 1978949 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 86452 | 43858 | 250863 | 205898 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 627142 | 535887 | 1543523 | 1297051 |
| **Total operating expenses** | 713594 | 579745 | 1794386 | 1502949 |
| **Operating (loss) income** | (90317) | 228017 | 198038 | 476000 |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 10228 | 7502 | 16150 | 13464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on PPP loan forgiveness |  |  |  | 326100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (11161) | (21706) | (83698) | (95776) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate |  |  |  | 225330 |
| **Total other income (expense)** | (933) | (14204) | (67548) | 469118 |
| **Income before provision (benefit) for income taxes** | (91250) | 213813 | 130490 | 945118 |
| **Provision for (benefit from) income taxes** | (19279) | (17693) | 29653 | 95765 |
| **Net income (loss)** | $(71971) | $231506 | $100837 | $849353 |
| **Net income (loss) per share of common stock:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.00) | $0.00 | $0.00 | $0.02 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully diluted | $(0.00) | $0.00 | $0.00 | $0.01 |
| **Weighted average number of shares outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 47284689 | 47284689 | 47284689 | 47284689 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully diluted | 57584689 | 57584689 | 57584689 | 57584689 |

---

See accompanying notes to condensed consolidated financial statements

[**Table of Contents**](#TOC)

#### STERLING CONSOLIDATED CORP

#### CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Common**<br>**Stock**<br>**Subcribed** | **Additional**<br>**Paid-in**<br> **Capital** | <br>**Accumulated**<br>**Deficit** | <br>**Total** |
| **Balance, December 31, 2020** | 47284689 | $47285 | $— | $2569249 | $(1179006) | $1437528 |
| &nbsp;&nbsp;Net income for the nine months ended September 30, 2021 |  |  |  |  | 849353 | 849353 |
| **Balance, June 30, 2021** | 47284689 | $47285 | $— | $2569249 | $(329653) | $2286881 |
| **Balance, December 31, 2021** | 47284689 | $47285 | $93000 | $2569249 | $(371155) | $2338379 |
| &nbsp;&nbsp;Net income for the nine months ended September 30, 2022 |  |  |  |  | 100837 | 100837 |
| **Balance, September 30, 2022** | 47284689 | $47285 | $93000 | $2569249 | $(270318) | $2439216 |

---

See accompanying notes to condensed consolidated financial statements

[**Table of Contents**](#TOC)

**STERLING CONSOLIDATED CORP AND SUBSIDIARIES**

#### CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended** | **For the Nine Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2022** | **2021** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income  | $100837 | $849353 |
| &nbsp;&nbsp;Adjustments to reconcile net income (loss) income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 108834 | 65747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate |  | (225330) |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1653896) | (659174) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | (737637) | 144531 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 116000 | (57828) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset | 27403 | 95765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued interest payable | 1641954 | (323006) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (2556) | (1005) |
| &nbsp;&nbsp;**Net cash used in operating activities** | (399061) | (110947) |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of real estate |  | 712500 |
| &nbsp;&nbsp;**Net cash provided by investing activities** |  | 712500 |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net borrowing (paydown) on line of credit | 494574 | (46917) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net paydown on notes payable | (26360) | (135101) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net paydown to related party note payable | (520816) | (236643) |
| &nbsp;&nbsp;**Net cash used in financing activities** | (52602) | (418661) |
| **Net change in cash and cash equivalents** | (451663) | 182892 |
| **Cash and cash equivalents at the beginning of period** | 569281 | 171818 |
| **Cash and cash equivalents at the end of period** | $117618 | $354710 |
| **Supplemental disclosures of cash flow information:** |  |  |
| &nbsp;&nbsp;Cash paid for interest | $83698 | $95776 |
| &nbsp;&nbsp;Cash paid for taxes | $2522 | $— |

---

See accompanying notes to condensed consolidated financial statements

[**Table of Contents**](#TOC)

#### STERLING CONSOLIDATED CORP AND SUBSIDIARIES

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

#### SEPTEMBER 30, 2022

#### NOTE 1 – BASIS OF PRESENTATION
The accompanying interim financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows as of and for the period ended, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2021 audited financial statements. The results of operations for the periods ended September 30, 2022 and September 30, 2021 are not necessarily indicative of the operating results for the full years.

In the first quarter of 2020 the Company was affected by COVID-19. The COVID-19 pandemic has caused us to modify our business practices (including employee travel, employee work locations, and reduction of physical participation in meetings, events and conferences), and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities. We reiterate that COVID 19 has affected our results of operations and the first quarter 2020 financial results are not necessarily indicative of the annual 2021 results.

COVID-19 continues to affect the world economy in 2022. The extent to which COVID-19 impacts our business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the coronavirus outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or may occur in the future.

#### NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2021.

***ASU 2016-13, "Financial Instruments - Credit Losses" (Topic 326)***

This pronouncement, along with subsequent ASUs issued to clarify provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the use of an "expected loss" model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected. The standard was effective for fiscal years beginning after December 15, 2019. Management has evaluated the impact in 2022 and 2021 and has concluded the effect is not material to the Consolidated Financial Statements as a whole.

[**Table of Contents**](#TOC)

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, useful lives of intangible assets and property and equipment, inventory valuations, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Inventories

On July 1, 2022 the Company elected to change its method of valuing inventory to the FIFO method, whereas from April 1, 2018 until June 30, 2022 inventory was valued using the weighted average cost method. Management moved to weighted average in 2018 as at the time they believed that average cost was preferable under the then-existing economic environment of low inflation. In the current environment of high inflation, management believes FIFO will produce a more accurate cost of goods sold. In accordance with ASC 250-10-45-9, the Company determined that it is impracticable to determine the cumulative effect of applying this change retrospectively because detailed records of inventory purchases and sales are no longer available for all periods from April 1, 2018. Accordingly, the Company did not recognize a cumulative effect adjustment in retained earnings related to this change. Sufficient information exists to apply the FIFO cost method beginning April 1, 2018. As such, the new method has been applied prospectively to the Company's inventory balances as of July 1, 2022.

Inventories, which are comprised of finished goods, are stated at the lower of cost or market. Cost does not include shipping and handling fees, which are charged directly to income. The Company provides for estimated losses from obsolete or slow-moving inventories, which is approximately 20% of the total inventory, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based upon inventory on hand, historical sales activity, industry trends, the business environment, and the expected net realizable value. The net realizable value is determined based upon current awareness of market prices.

---

| | | |
|:---|:---|:---|
| <br>**Inventory Type** | **September 30, 2022**<br>**(FIFO method)** | **December 31, 2021**<br>**(Avg. cost method)** |
| Finished goods | $4821491 | $4508102 |
| Raw materials |  |  |
| Work-in-progress |  |  |
| Inventory Reserve | (731192) | (731192) |
| Net Inventory | $4090299 | $3352663 |

---

Revenue Recognition

The Company recognizes revenue based on Account Standards Codification *("ASC")* 606, *Revenue from Contracts with Customers*, and all of the related amendments ("new revenue standard"). In the case of Sterling, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, shipment of the product has occurred, price is fixed or determinable and collectability of the resulting receivable is reasonably assured. For provision of third-party freight services provided by Integrity, revenue is recognized on a gross basis in accordance with ASC 606. Revenue is generally recognized when the contracted goods arrive at their destination point. When revenues and expenses straddle a period end due to the time between shipment and delivery, Integrity allocates revenue between reporting periods based on relative transit time in each period with expenses recognized as incurred. Cost of goods is comprised of sale of o-rings and related rubber products. Freight services is comprised of freight forwarding and related services earned by Integrity and rental services is comprised of revenue from rental of commercial space to third parties.

Basic and Diluted Earnings per Share

The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings (loss) per share includes common stock equivalents outstanding at the balance sheet date. The Company had 10,800,000 and 10,800,000 stock options that are included in the fully diluted earnings per share for the three and nine month periods ended September 30, 2022 and 2021, respectively.

[**Table of Contents**](#TOC)

#### NOTE 3- CLOSURE OF FLORIDA OFFICE AND SALE OF REAL ESTATE
In the first quarter of 2020, the Company closed down its Florida operations and consolidated the sales accounts with its sales force based out of the Company's headquarters in Neptune, New Jersey. The closure was an effort to reduce costs and consolidate operations and was not related to COVID-19.

On March 30, 2021 the Company sold its building and land in Apopka, Florida. The proceeds on the sale were $712,500 and the company recorded a gain on the sale of $225,330 in the first quarter of 2021.

**NOTE 4 – PPP 1**<sup>ST</sup> **DRAW FORGIVENESS**

In May of 2021, the Company's *Paycheck Protection Program* draw 1 loan of $326,100 was forgiven in full and was recorded as other income in the accompanying condensed consolidated statement of operations.

**NOTE 5 - SUBSEQUENT EVENTS**

Management reviewed transactions for disclosable subsequent events from September 30, 2022 through January 19, 2023. On December 22, 2022 CEO, Darren DeRosa and Chairman of the Board Angelo DeRosa made a cashless exercise of options granted December 26, 2017 with a $0.03/share strike price. The STCC underlying stock closed at $0.0754 that day. Applying the cashless exercise feature equates to Darren DeRosa and Angelo DeRosa acquiring 1,866,578 and 1,866,578 shares, respectively.

[**Table of Contents**](#TOC)

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

**Cautionary Notice Regarding Forward Looking Statements**

The information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

This filing contains a number of forward-looking statements which reflect management's current views and expectations with respect to our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than statements of historical fact, including statements addressing operating performance, events, or developments which management expects or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability, new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical information, are forward looking statements. In particular, the words "believe," "expect," "intend," "anticipate," "estimate," "may," variations of such words, and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated, or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances.

Readers should not place undue reliance on these forward-looking statements, which are based on management's current expectations and projections about future events, and are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

**Overview**

We were incorporated in the State of Nevada as Oceanview Acquisition Corp. on January 31, 2011. On May 18, 2012, we amended our Articles of Incorporation to change our name to Sterling Consolidated Corp.

Our largest subsidiary is Sterling Seal & Supply, Inc. ("Sterling Seal"), a New Jersey corporation which was incorporated in 1997. Its predecessor was Sterling Plastic & Rubber Products, Inc., incorporated in New Jersey and was founded in 1970. Sterling Seal engages primarily in the distribution and sale of O-rings, rubber seals, oil seals, custom molded rubber parts, custom Teflon parts, Teflon rods, O-ring cord, bonded seals, O-ring kits, and stuffing box sealant.

We also own real property through our subsidiary ADDR Properties, LLC ("ADDR"). ADDR owns a 28,000 square foot facility in Neptune, New Jersey, that is used by Sterling Seal for its operations and corporate headquarters.

In addition, our subsidiary Integrity Cargo Freight Corporation ("Integrity") is a freight forwarding business. Integrity shares a facility with Sterling Seal and manages the importation of Sterling Seal's products and exports products on behalf of Sterling Seal to various countries. Currently ninety percent (90%) of Sterling Seal's imports come from Asia, and ten percent (10%) of the Company's sales are exported to various countries. However, all payables are billed and collected in USD, so Sterling does not bear any foreign exchange risk on open payables.

[**Table of Contents**](#TOC)

**Results of Operations**

***Comparison for the three months ended September 30, 2022 and 2021***

*Net Revenue*

Net revenue increased by approximately $2,087,042 or approximately 79%, to $4,728,018 for the three months ended September 30, 2022 from $2,640,976 for the three months ended September 30, 2021. This increase was due primarily to selling price increases and larger order sizes from existing customers attempting to build inventory against the current worldwide o-ring inventory supply chain issues. The Company expects this trend of aggressive buying from its customers to continue through the 4<sup>th</sup> quarter of 2022.

*Total Cost of Sales*

Cost of sales increased by approximately $2,271,527 or 124%, to $4,104,741 for the three months ended September 30, 2022 from $1,833,214 for the three months ended September 30, 2021. This increase was primarily due to an approximately commensurate increase in sales coupled with increased freight costs of $391,734.

*Gross profit*

Gross profit decreased by $184,485 or 23%, to $623,277 for the three months ended September 30, 2022 from $807,762 for the three months ended September 30, 2021. This decrease was due primarily to higher sales resulting from increased consumer demand offset by higher relative cost of goods sold mainly attributed to freight costs of $391,734 for the period.

*Operating income*

Operating income decreased to a loss of $90,317 for the three months ended September 30, 2022 from income of $228,017 for the three months ended September 30, 2021. This decrease is attributed to the above-described decreases in gross profit coupled with an increase of $91,255 in general and administrative costs mainly attributed increases in payroll of $66,654 due to raises and headcount increases.

*Other income (expense)*

Other expense decreased by $13,271 to expense of $933 for the three months ended September 30, 2022, from expense of $14,204 for the three months ended September 30, 2021. This decrease is attributed to reduced interest expense on reduced debt.

*Net Income*

As a result of the above factors, the Company showed net loss of $71,971 for the three months ended September 30, 2022, as compared to net income of $231,506 for the three months ended September 30, 2021. This decrease of $303,477 or 131% is primarily attributed to the aforementioned factors that affected revenues and cost of sales resulting in an operating loss of $90,317.

***Comparison for the nine months ended September 30, 2022 and 2021***

*Net Revenue*

Net revenue increased by approximately $3,859,581 or 35%, to $11,498,796 for the nine months ended September 30, 2022 from $7,639,215 for the nine months ended September 30, 2021. This increase was due primarily to selling price increases and larger order sizes from existing customers attempting to build inventory against the current worldwide o-ring inventory shortage. The Company expects this trend of aggressive buying from its customers to continue through the 4th quarter of 2022.

*Total Cost of Sales*

Cost of sales increased by $3,846,106 or 68%, to $9,506,372 for the nine months ended September 30, 2022, from $5,660,266 for the nine months ended September 30, 2021. This increase is primarily attributed to increased sales coupled with higher inventory costs due to inflation and higher freight costs.

[**Table of Contents**](#TOC)

*Gross profit*

Gross profit increased by $13,475 or approximately 0.1%, to $1,992,424 for the nine months ended September 30, 2022, from $1,978,949 for the nine months ended September 30, 2021. This increase was due to an increase in sales offset by a higher cost of rubber products and higher freight costs.

*Operating income*

Operating income decreased $277,962 to income of $198,038 for the nine months ended September 30, 2022, from income of $476,000 for the nine months ended September 30, 2021. This decrease is attributed to the above-described increase in revenues and gross profit coupled with an increase in general and administrative expenses of 246,472. The increase in general and administrative expenses is mainly attributed to an increase in administrative payroll costs of $161,215 due to higher headcount.

*Other income (expense)*

Other income (expense) decreased by $536,666 to expense of $67,548 for the nine months ended September 30, 2022, from income of $469,118 for the nine months ended September 30, 2021. This decrease is attributed to one time income events including PPP loan forgiveness of $326,100 coupled with the gain on the sale of the Florida real estate of $225,330 recorded in the 1<sup>st</sup> quarter of 2021 which were absent in the 2022 reporting period.

*Net Income*

As a result of the above factors, the Company showed net income of $100,837 for the nine months ended September 30, 2022, as compared to a net income of $849,353 for the nine months ended September 30, 2021. This decrease is attributed to operational income of $198,038 coupled with one-time gains on the PPP loan forgiveness of $326,100 and a gain on the sale of the Florida real estate of $225,330 for the nine months ended September 30, 2021 which were absent in the 2022 reporting period.

**Liquidity and Capital Resources**

Cash requirements for, but not limited to, working capital, capital expenditures, and debt repayments have been funded from cash balances on hand, revolver borrowings, loans from officers, notes payable and cash generated from operations.

On September 30, 2022, we had cash and cash equivalents of approximately $117,618 as compared to approximately $569,281 as of December 31, 2021, representing a decrease of $451,663. This decrease can be explained by cash used in operating activities of $399,061 primarily attributed to increased buying of inventory and resultant accounts payable to satisfy increased customer demand; offset by cash used in financing activities of $52,602 which was the result of paydowns of the note payable related party of $520,816, offset by increased borrowing on the line of credit of $494,574.

The cash flow from operating activities decreased from cash used of $110,947 for the nine months ended September 30, 2021 to net cash used of $399,061 for the nine months ended September 30, 2022. This decrease of $288,144 is primarily attributed to increased accounts payable and inventory offset by a lesser increase in accounts receivable.

The cash flow from investing activities increased from net cash used of $712,500 for the nine months ended September 30, 2021 to $0 for the nine months ended September 30, 2022. This decrease is explained by the proceeds from the sale of the Florida real estate totaling $712,500 in the first quarter of 2021 which was absent for the 2022 rep.

The cash flow from financing activities increased from net cash used of $418,661 for the nine months ended September 30, 2021 to net cash used of $52,602 for the nine months ended September 30, 2022. This increase is primarily attributed to increased borrowing on the line of credit of $541,491 offset by the increased paydown of the related party debt in the amount of 284,173.

[**Table of Contents**](#TOC)

**Debt Transactions**

*Asset Based Loan*

The Company refinanced its debt in 2020 with a commercial bank and obtained a line of credit with a limit of $1,000,000. The line of credit calls for a variable interest rate which is currently at 5.75% per annum and there is an outstanding balance of $895,627 as of September 30, 2022.

*Mortgage Note*

The Company obtained a mortgage on its Neptune, NJ headquarters in the 4th quarter of 2019, offset by a pay down of a portion of its related party note and asset-based line of credit. The mortgage payable is due in monthly installments of principal and interest. Interest is charged at a fixed rate of 5.00%. The mortgage is secured by the assets of the Company and personal guarantee of the Chairman of the Board and the CEO. The note is amortized over a 20-year period but has a 5-year maturity, which will require refinancing in November of 2024.

*COVID-19 related financing:*

*EIDL Note*

Additionally, on May 28, 2020, the Company received $150,000 in loan funding from the SBA under the Economic Injury Disaster Loan ("EIDL") program administered by the SBA, which program was expanded pursuant to the CARES Act. The EIDL is evidenced by a promissory note, dated May 28, 2020 (the "EIDL Note") in the original principal amount of $150,000 with the SBA, the lender.

Under the terms of the EIDL Note, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of the EIDL Note is 30 years, though it may be payable sooner upon an event of default under the EIDL Note. Under the EIDL Note, the Company will be obligated to make equal monthly payments of principal and interest beginning on May 28, 2022 through the maturity date of May 28, 2050. The EIDL Note may be prepaid in part or in full, at any time, without penalty.

The EIDL Note provides for certain customary events of default, including: (i) a failure to comply with any provision of the EIDL Note, the related Loan Authorization and Agreement, or other EIDL loan documents; (ii) a default on any other SBA loan; (iii) a sale or transfer of, or failure to preserve or account to SBA's satisfaction for, any of the collateral or its proceeds; (iv) a failure of the Company or anyone acting on its behalf to disclose any material fact to SBA; (v) the making of a materially false or misleading representation to SBA by the Company or anyone acting on their behalf; (vi) a default on any loan or agreement with another creditor, if SBA believes the default may materially affect the Company's ability to pay the EIDL Note; (vii) a failure to pay any taxes when due; (viii) if the Company becomes the subject of a proceeding under any bankruptcy or insolvency law; (ix) if a receiver or liquidator is appointed for any part of the Company's business or property; (x) the making of an assignment for the benefit of creditors; (xi) has any adverse change in financial condition or business operation that SBA believes may materially affect the Company's ability to pay the EIDL Note; (xii) effects any reorganization, merger, consolidation, or other transaction changing ownership or business structure without SBA's prior written consent; or (xiii) becomes the subject of a civil or criminal action that SBA believes may materially affect the Company's ability to pay the EIDL Note.

**Critical Accounting Policies and Estimates**

The preparation of our Consolidated Financial Statements, in accordance with accounting principles generally accepted in the United States, requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures pertaining to contingent assets and liabilities. Note 2, "Significant Accounting Policies," to the Consolidated Financial Statements describes the significant accounting policies used to prepare the Consolidated Financial Statements. On an ongoing basis we evaluate our estimates, including, but not limited to, those related to bad debts, inventories, income taxes, and contingencies. We base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from our estimates.

We believe the following accounting policies and estimates are the most critical. Some of them involve significant judgments and uncertainties and could potentially result in materially different results under different assumptions and conditions.

[**Table of Contents**](#TOC)

***Revenue recognition***

The Company recognizes revenue based on Account Standards Codification *("ASC")* 606, *Revenue from Contracts with Customers*, and all of the related amendments ("new revenue standard"). In the case of Sterling, revenue is recognized only when control of the product passes to the customer or the service is provided and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. The new revenue standard does not materially change this calculation method. For provision of third-party freight services provided by Integrity, revenue is recognized on a gross basis in accordance with ASC 606. Revenue is generally recognized when the contracted goods arrive at their destination point. When revenues and expenses straddle a period end due to the time between shipment and delivery, Integrity allocates revenue between reporting periods based on relative transit time in each period with expenses recognized as incurred. Cost of goods is comprised of sale of o-rings and related rubber products. Freight services is comprised of freight forwarding and related services earned by Integrity and rental services is comprised of revenue from rental of commercial space to third parties.

***Income taxes***

Under the asset and liability method prescribed under *ASC 740, Income Taxes*, the Company uses the liability method of accounting for income taxes. The liability method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities have been adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.

The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-not" threshold, the amount to be recognized in the financial statements will be the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. As of December 31, 2020, the Company had no uncertain tax positions.

***Fair values of financial instruments***

In January 2010, the FASB ASC Topic 825, *Financial Instruments*, requires disclosures about fair value of financial instruments in quarterly reports as well as in annual reports. For the Company, this statement applies to certain investments and long-term debt. Also, the FASB ASC Topic 820, *Fair Value Measurements and Disclosures,* clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements.

Various inputs are considered when determining the value of the Company's investments and long-term debt. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. These inputs are summarized in the three broad levels listed below.

● Level 1 – observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets.

● Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc …).

● Level 3 – significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments).

The Company's adoption of FASB ASC Topic 825, effectively at the beginning of the second quarter in FY 2010, did not have a material impact on the company's financial statements.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared.

[**Table of Contents**](#TOC)

***Stock-based compensation***

The Company records stock-based compensation at fair value of the stock provided for services. The 10,300,000 of the stock options outstanding as of September 30, 2022 were fully vested and therefore, no compensation expense was recorded in the quarter ended September 30, 2022.

**Recent Accounting Pronouncements**

The Company's management has considered all recent accounting pronouncements. Management believes that these recent pronouncements will not have a material effect on the Company's financial statements.

**Off-Balance Sheet Arrangements**

The Company has declared a dividend of its proprietary cryptocurrency, DIMO, that is yet to be distributed. As there is currently no market for the cryptocurrency, the Company has valued the dividend at $0.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

We are a Smaller Reporting Company and are not required to provide the information under this item.

**Item 4. Controls and Procedures.**

*Disclosure Controls and Procedures*

The Company has adopted and maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the reports filed under the Exchange Act, such as this Quarterly Report on Form 10-Q, is collected, recorded, processed, summarized and reported within the time periods specified in the rules of the Securities and Exchange Commission. The Company's disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure. As required under Exchange Act Rule 13a-15, the Company's management, including the Principal Executive Officer and Principal Financial Officer, have conducted an evaluation of the effectiveness of disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, the Company's Principal Executive Officer and Principal Financial Officer concluded that due to material weaknesses the Company's disclosure controls and procedures are not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, as appropriate, to allow timely decisions regarding required disclosure.

As defined by Auditing Standard No. 5, "An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements and Related Independence Rule and Conforming Amendments," established by the Public Company Accounting Oversight Board ("PCAOB"), a material weakness is a deficiency or combination of deficiencies that result in a more than a remote likelihood that a material misstatement of annual or interim financial statements will not be prevented or detected. In connection with the assessment described above, management identified the following control deficiencies that represent material weaknesses as of June 30, 2020:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Lack of an independent audit committee or audit committee financial expert. Although our board of directors serves as the audit committee it has no independent directors. These factors are counter to corporate governance practices as defined by the various stock exchanges and may lead to less supervision over management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) We do not have sufficient experience from our accounting personnel with the requisite U.S. GAAP public company reporting experience that is necessary for adequate controls and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Need for greater integration, oversight, communication and financial reporting of the books and records of our satellite offices.

[**Table of Contents**](#TOC)

Our management determined that these deficiencies constituted material weaknesses.

Due to our small size, we were not able to immediately take any action to remediate these material weaknesses. Notwithstanding the assessment that our Internal Controls over Financial Reporting was not effective and that there were material weaknesses identified herein, we believe that our consolidated financial statements contained in this Annual Report fairly present our financial position, results of operations and cash flows for the years covered thereby in all material respects.

*Changes in Internal Control*

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during our fiscal quarter ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.**

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries' officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

**Item 1A. Risk Factors.**

We are a Smaller Reporting Company and are not required to provide the information under this item.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

None.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

None.

[**Table of Contents**](#TOC)

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number**  | **Exhibit Title** |
| 31.1\* | [Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](stcc-20220930xex31d1.htm) |
| 31.2\* | [Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](stcc-20220930xex31d2.htm) |
| 32.1\*\* | [Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](stcc-20220930xex32d1.htm) |
| 32.2\*\* | [Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](stcc-20220930xex32d2.htm) |
| 101.INS \* | XBRL Instance Document |
| 101.SCH \* | XBRL Taxonomy Schema |
| 101.CAL \* | XBRL Taxonomy Calculation Linkbase |
| 101.DEF \* | XBRL Taxonomy Definition Linkbase |
| 101.LAB \* | XBRL Taxonomy Label Linkbase |
| 101.PRE \* | XBRL Taxonomy Presentation Linkbase |
| 104\* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith.

\*\* In accordance with SEC Release 33-8238, Exhibit 32.1 and 32.2 are being furnished and not filed.

[**Table of Contents**](#TOC)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **STERLING CONSOLIDATED CORP.** | **STERLING CONSOLIDATED CORP.** |
| By: | */s/ Darren DeRosa* |
|  | Darren DeRosa, |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
|  | Dated: January 19, 2023 |
| By: | */s/ Scott Chichester* |
|  | Scott Chichester, |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |
|  | Dated: January 19, 2023 |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

**OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Darren DeRosa, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Sterling Consolidated Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrants' other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: January 19, 2023

---

| |
|:---|
| `<br>|
| */s/ Darren DeRosa* |
| Darren DeRosa |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

**OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Scott Chichester, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Sterling Consolidated Corp.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrants' other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: January 19, 2023

---

| |
|:---|
| */s/ Scott Chichester* |
| Scott Chichester |
| Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Sterling Consolidated Corp. (the "Company"), does hereby certify, to such officer's knowledge, that:

The Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

Dated: January 19, 2023

---

| |
|:---|
| */s/ Darren DeRosa* |
| Darren DeRosa |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of Sterling Consolidated Corp. (the "Company"), does hereby certify, to such officer's knowledge, that:

The Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of, and for, the periods presented in the Form 10-Q.

Dated: January 19, 2023

---

| |
|:---|
| */s/ Scott Chichester* |
| Scott Chichester |
| Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

------