Stran & Company Restates Financials

TL;DR

Stran & Co. is ditching old financials, expect accounting headaches.

AI Summary

Stran & Company, Inc. announced on September 10, 2024, that it will not rely on previously issued financial statements. This decision impacts financial reporting and requires a review of past financial data. The company is based in Quincy, MA.

Why It Matters

This filing indicates potential issues with Stran & Company's past financial reporting, which could affect investor confidence and require significant accounting adjustments.

Risk Assessment

Risk Level: high — Non-reliance on previously issued financial statements suggests significant accounting errors or restatements, which poses a high risk to investors.

Key Players & Entities

• Stran & Company, Inc. (company) — Registrant
• September 10, 2024 (date) — Date of earliest event reported
• Nevada (jurisdiction) — State of incorporation
• Quincy, MA (location) — Principal executive offices

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share SWAG The Nasdaq Stock Mar
• $4.81375 — of Common Stock at an exercise price of $4.81375 SWAGW The Nasdaq Stock Market LLC

Filing Documents

• ea0214596-8k_stran.htm (8-K) — 38KB
• 0001213900-24-078971.txt ( ) — 256KB
• swag-20240910.xsd (EX-101.SCH) — 4KB
• swag-20240910_def.xml (EX-101.DEF) — 26KB
• swag-20240910_lab.xml (EX-101.LAB) — 36KB
• swag-20240910_pre.xml (EX-101.PRE) — 25KB
• ea0214596-8k_stran_htm.xml (XML) — 6KB

02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. In connection with the re-audit of the financial previously audited by the Company's prior independent registered public accounting firm, BF Borgers CPA PC, the Company, in consultation with the Company's current independent registered public accounting firm, Marcum LLP, has identified certain accounting errors relating to compliance with U.S. GAAP in connection with the Company's accounting of certain assets and liabilities as well as acquisition accounting. More specifically, the errors relate primarily to the improper inclusion of certain amounts as accounts receivable and unearned revenues, as well as the incorrect accounting of certain transactions as asset acquisitions that would properly be accounted for as business combinations. The Company is currently undertaking a review of related financial statement line items, notes to the financial statements, and related accounting policies to ensure U.S. GAAP compliance. The Company is currently unable to determine whether this review will result in further corrections being required. On September 10, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of the Company, in consultation with the Company's management, concluded that the Company's previously issued audited consolidated financial statements and the notes thereto as of and for the fiscal years ended December 31, 2023 and December 31, 2022 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 that was filed with the Securities and Exchange Commission (the "SEC"), as well as the Company's previously issued unaudited condensed consolidated financial statements and the notes thereto as of and for the fiscal periods ended March 31, 2022, June 30, 2022, Septe

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K and the statements contained therein may include "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, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or the Company's future financial or operating performance. In some cases, you can identify these statements because they contain words such as "may," "will," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," "plan," "target," "predict," "potential," or the negative of such terms, or other comparable terminology that concern the Company's expectations, strategy, plans, or intentions. Forward-looking statements relating to expectations about future results or events are based upon information available to the Company as of today's date and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. The Company's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties described in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other filings with the SEC. All subsequent written and oral forward-looking statements concerning the Company or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The Company does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date her

SIGNATURES

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 hereunto duly authorized. Date: September 16, 2024 Stran & Company, Inc. /s/ Andrew Shape Name: Andrew Shape Title: President and Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR