Stran & Company, Inc. Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Financial Statements (Tables)

3 Months Ended

Mar. 31, 2024

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

Balance Sheet as of March 31, 2023	As Reported		Adjustment			As Restated			Reference
Cash and cash equivalents	$	10,597	$	69		$	10,666		*
Investments		10,269		(69	)		10,200		*
Accounts receivable, net		11,915		(303	)		11,612		4
Deferred income taxes		1,205		(1,205	)		—		3
Inventory		5,666		(632	)		5,034		6,8
Prepaid corporate taxes		87		(51	)		36		3
Total current assets		41,523		(2,191	)		39,332		3,4,6,8,*

Intangible assets, net		5,655		(3,473	)		2,182		1
Goodwill		—		90			90		1,2
Other assets		—		23			23		1
Right of use asset - office leases		776		77			853		1
Total other assets		6,431		(3,283	)		3,148		1,2
Total assets	$	49,147	$	(5,474	)	$	43,673		1,2,3,4,6,8,*

Accounts payable and accrued expenses	$	2,938	$	(23	)	$	2,915		3
Accrued payroll and related		674		6			680		*
Current portion of contingent earn-out liabilities		2,172		(1,621	)		551		1
Current portion of installment payment liabilities		—		374			374		1
Current portion of lease liability		320		66			386		1
Total current liabilities		8,398		(1,198	)		7,200		1,3,4,8,*

Long-term contingent earn-out liabilities		1,595		(1,127	)		468		1
Long-term installment payment liabilities		—		132			132		1
Long-term lease liability		456		35			491		1
Total long-term liabilities		2,051		(960	)		1,091		1
Total liabilities		10,449		(2,158	)		8,291		1,3,4,8,*

Additional paid-in capital		38,307		(167	)		38,140		1
Accumulated deficit		389		(3,090	)		(2,701	)	1,3,5,7,*
Accumulated other comprehensive loss		—		(59	)		(59	)	8
Total stockholders’ equity		38,698		(3,316	)		35,382		1,3,5,7,*
Total liabilities and stockholders’ equity	$	49,147	$	(5,474	)	$	43,673		1,3,5,7,8,*

Statement of Operations for the Three Months Ended March 31, 2023	As Reported			Adjustment			As Restated			Reference
Sales	$	15,776		$	195		$	15,971		5
Total sales		15,776			195			15,971		5

Cost of sales		11,083			(521	)		10,562		5
Total cost of sales		11,083			(521	)		10,562		5

GROSS PROFIT		4,693			716			5,409		5

General and administrative expenses		6,079			(88	)		5,991		1,*
Total operating expenses		6,079			(88	)		5,991		1,*

LOSS FROM OPERATIONS		(1,386	)		804			(582	)	1,5,*

Other income		57			(57	)		—		1
Unrealized gain (loss) on investments		132			(132	)		—		7
Realized gain on investments		—			12			12		7
Total other income		327			(177	)		150		1,7

LOSS BEFORE INCOME TAXES		(1,059	)		627			(432	)	1,5,7,*

Provision for income taxes		(364	)		416			52		3

NET LOSS		(695	)		211			(484	)	1,3,5,7,*

NET LOSS PER COMMON SHARE
Basic	$	(0.04	)	$	0.01		$	(0.03	)	1,3,5,7,*
Diluted	$	(0.04	)	$	0.01		$	(0.03	)	1,3,5,7,*

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		18,477,604			(185	)		18,477,419		*
Diluted		18,477,604			(185	)		18,477,419		*

Statement of Stockholders’ Equity for the	Common Stock					Additional Paid-In			Accumulated Other Comprehensive			Retained Earnings (Accumulated			Stock-holders’
Three Months Ended March 31, 2023	Shares			Value		Capital			Loss			Deficit)			Equity
Balance, March 31, 2023 (As Reported)		18,483,334		$	2	$	38,307		$	—		$	389		$	38,698
Adjustments		(186	)		—		(167	)		(59	)		(3,090	)		(3,316	)
Balance, March 31, 2023 (As Restated)		18,483,148		$	2	$	38,140		$	(59	)	$	(2,701	)	$	35,382

Statement of Cash Flows for the Three Months Ended March 31, 2023	As Reported			Adjustment			As Restated			Reference
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(695	)	$	211		$	(484	)	1,3,5,7,*
Deferred Income Taxes (Credit)		(364)			364			—
Depreciation and amortization		259			(111	)		148		1
Adjustment to reconcile operating lease expense to cash paid		—			24			24		*
Change in allowance for credit losses		—			19			19		4,*
Intangible asset impairment, net		(56	)		56			—		1
Noncash accretion		—			5			5		1
Unrealized gain (loss) on investments		(94	)		94			—		7
Accounts receivable, net		2,528			(408	)		2,120		4
Inventory		1,202			(309	)		893		6
Prepaid taxes		—			52			52
Accounts payable and accrued expenses		(1,113	)		(28	)		(1,141	)	*
Accrued payroll and related		66			4			70		*
Net cash used in operating activities		(3,593	)		(27	)		(3,620	)	1,3,4,5,6,7,*

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(285	)		—			(285	)	1,6
Proceeds from sale of investments		—			800			800		7
Purchase of investments		(396	)		(704	)		(1,100	)	7
Net cash used in investing activities		(681	)		96			(585	)	1,6,7

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of contingent earn-out liabilities		(384	)		176			(208	)	1
Payment of installment payment liabilities		—			(175	)		(175	)	1
Net cash used in financing activities		(384	)		1			(383	)	1

NET DECREASE IN CASH		(4,658	)		70			(4,588	)	1,3,4,5,6,7,*

CASH - ENDING	$	10,596		$	70		$	10,666		1,3,4,5,6,7,*