Stran & Company, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Restatement of Previously Issued Financial Statements (Tables)

Restatement of Previously Issued Financial Statements (Tables)

12 Months Ended

Dec. 31, 2023

Restatement of Previously Issued Financial Statements [Abstract]

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

Balance Sheet as of December 31, 2023	As Reported		Adjustment			As Restated			Reference
Cash and cash equivalents	$	7,989	$	70			8,059			*
Investments		10,464		(71	)		10,393			*
Accounts receivable, net		20,466		(4,243	)		16,223			4,5
Accounts receivable – related parties		—		853			853			4
Deferred income taxes		841		(841	)		—			3
Inventory		6,639		(1,857	)		4,782			7,9
Prepaid corporate taxes		17		45			62			3
Total current assets		49,086		(6,044	)		43,042

Intangible assets, net		9,659		(6,545	)		3,114			1
Goodwill		—		—			—			1,2
Other assets		—		23			23			1
Total other assets		10,995		(6,522	)		4,473
Total assets	$	61,602	$	(12,566	)	$	49,036

Accounts payable and accrued expenses	$	4,316	$	429		$	4,745			3
Accrued payroll and related		2,563		5			2,568			*
Unearned revenue		5,171		(4,055	)		1,116			5,9
Current portion of contingent earn-out liabilities		2,870		(2,646	)		224			1
Current portion of installment payment liabilities		—		786			786			1
Total current liabilities		16,667		(5,481	)		11,186

Long-term contingent earn-out liabilities		4,587		(3,824	)		763			1
Long-term installment payment liabilities		—		639			639			1
Total long-term liabilities		5,385		(3,185	)		2,200

Additional paid-in capital		38,429		(166	)		38,263			1
Accumulated deficit		1,119		(3,721	)		(2,602	)		1,2,3,6,7,*
Accumulated other comprehensive loss		—		(13	)		(13	)		8
Total stockholders’ equity		39,550		(3,900	)		35,650
Total liabilities and stockholders’ equity	$	61,602	$	(12,566	)	$	49,036

Balance Sheet as of December 31, 2022	As Reported		Adjustment			As Restated			Reference
Accounts receivable, net		14,443		(693	)		13,750			5
Deferred income taxes		841		(841	)		—			3
Inventory		6,868		(941	)		5,927			7
Total current assets		48,569		(2,475	)		46,094			3,5,7

Intangible assets, net		6,272		(4,034	)		2,238			1
Goodwill		—		90			90			1,2
Other assets		—		23			23			1
Total other assets		7,057		(3,921	)		3,136			1,2
Total assets	$	56,626	$	(6,396	)	$	50,230			1,2,3,5,7

Accounts payable and accrued expenses	$	4,051	$	(2	)	$	4,049			*
Accrued payroll and related		609		1			610			*
Current portion of contingent earn-out liabilities		1,810		(1,072	)		738			1
Current portion of installment payment liabilities		—		267			267			1
Total current liabilities		13,955		(806	)		13,149			1,*

Long-term contingent earn-out liabilities		2,846		(2,358	)		488			1
Long-term installment payment liabilities		—		414			414			1
Total long-term liabilities		3,306		(1,944	)		1,362			1

Additional paid-in capital		38,279		(166	)		38,113			1
Accumulated deficit		1,084		(3,301	)		(2,217	)		1,2,3,6,7,*
Accumulated other comprehensive loss		—		(179	)		(179	)		8
Total stockholders’ equity		39,365		(3,646	)		35,719			1,2,3,6,7,8,*
Total liabilities and stockholders’ equity	$	56,626	$	(6,396	)	$	50,230			1,2,3,6,7,8,*

Schedule of Statement of Operations

Statement of Operations for the Year Ended December 31, 2023	As Reported			Adjustment			As Restated			Reference
Sales	$	75,894		$	(747	)	$	75,147			4,6,9
Sales – related parties		—			853			853			4
Total sales		75,894			106			76,000			4,6,9

Cost of sales		51,012			(520	)		50,492			4,6,9
Cost of sales - related parties		—			656			656			4
Total cost of sales		51,012			136			51,148			4,6,9

GROSS PROFIT		24,882			(30	)		24,852			4,6,9

General and administrative expenses		26,030			(720	)		25,310			1,*
Goodwill impairment		—			810			810			2
Total operating expenses		26,030			90			26,120			1,2,*

LOSS FROM OPERATIONS		(1,148	)		(120	)		(1,268	)		1,2,4,6,9,*

Other income		375			(189	)		186			1
Change in fair value of contingent earn-out liability		—			65			65			1
Realized gain (loss) on investments		270			(167	)		103			8
Total other income		1,215			(291	)		924			1,8

EARNING (LOSS) BEFORE INCOME TAXES		67			(411	)		(344	)		1,2,4,6,8,9,*

Provision for income taxes		31			10			41			3

NET EARNINGS (LOSS)		35			(420	)		(385	)		1,2,3,4,6,8,9,*

NET LOSS PER COMMON SHARE
Basic	$	0.00		$	(0.02	)	$	(0.02	)		1,2,3,4,6,8,9,*
Diluted	$	0.00		$	(0.02	)	$	(0.02	)		1,2,3,4,6,8,9,*

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		18,519,615			277			18,519,892			*
Diluted		29,453,206			(10,933,314	)		18,519,892			1,2,3,4,6,8,9,*

Statement of Operations for the Year Ended December 31, 2022	As Reported			Adjustment			As Restated			Reference
Sales	$	58,953		$	(1,075	)	$	57,878			6
Total sales		58,953			(1,075	)		57,878			6

Cost of sales		42,384			109			42,493			6
Total cost of sales		42,384			109			42,493			6

GROSS PROFIT		16,569			(1,184	)		15,385			6

General and administrative expenses		18,075			(286	)		17,789			1,*
Goodwill impairment		—			1,182			1,182			2
Total operating expenses		18,075			896			18,971			1,2,*

LOSS FROM OPERATIONS		(1,506	)		(2,080	)		(3,586	)		1,2,6,*

Other income		113			(79	)		34			1
Change in fair value of contingent earn-out liability		—			180			180			1
Realized gain (loss) on investments		(179	)		178			(1	)		8
Total other income		29			279			308			1,8

LOSS BEFORE INCOME TAXES		(1,477	)		(1,801	)		(3,278	)		1,2,6,8,*

Provision for income taxes		(699	)		921			222			3

NET LOSS		(778	)		(2,722	)		(3,500	)		1,2,3,6,8,*

NET LOSS PER COMMON SHARE
Basic	$	(0.04	)	$	(0.14	)	$	(0.18	)		1,2,3,6,8,*
Diluted	$	(0.04	)	$	(0.14	)	$	(0.18	)		1,2,3,6,8,*

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		19,202,619			(25	)		19,202,594			*
Diluted		19,202,619			(25	)		19,202,594			*

Schedule of Statement of Stockholders’ Equity

Statement of Stockholders’ Equity for the Years Ended December 31, 2023 and 2022	Common Stock					Additional Paid-In			Accumulated Other Comprehensive			Retained Earnings (Accumulated			Stock-holders’
	Shares			Value		Capital			Loss			Deficit)			Equity
Balance, December 31, 2023 (As Reported)		18,534,073		$	2	$	38,429		$	—		$	1,119		$	39,550
Adjustments		4,927			—		(166	)		(13	)		(3,721	)		(3,900	)
Balance, December 31, 2023 (As Restated)		18,539,000		$	2	$	38,263		$	(13	)	$	(2,602	)	$	35,650

Balance, December 31, 2022 (As Reported)		18,475,521			2		38,279			—			1,084			39,365
Adjustments		(185	)		—		(166	)		(179	)		(3,301	)		(3,646	)
Balance, December 31, 2022 (As Restated)		18,475,336		$	2	$	38,113		$	(179	)	$	(2,217	)	$	35,719

Schedule of Statement of Cash Flows

Statement of Cash Flows for the Year Ended December 31, 2023	As Reported			Adjustment			As Restated			Reference
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)	$	35		$	(420	)	$	(385	)		1,2,3,4,6,8,9
Depreciation and amortization		1,506			(734	)		772			1,7
Adjustment to reconcile operating lease expense to cash paid		(11	)		19			8			*
Change in allowance for credit losses		—			(174	)		(174	)		5,*
Change in fair value of contingent earn-out liability		—			(65	)		(65	)		1
Intangible asset impairment, net		(178	)		178			—			1
Goodwill impairment		—			810			810			1,2
Noncash interest accretion		—			11			11			1
Unrealized gain (loss) on investments		(270	)		437			167			8
Accounts receivable		(6,023	)		5,346			(677	)		4,5
Accounts receivable – related parties		—			(853	)		(853	)		4
Inventory		228			1,799			2,027			7
Prepaid taxes		71			(46	)		25			3
Prepaid expenses		(566	)		5			(561	)		*
Accounts payable and accrued expenses		265			(161	)		104			*
Accrued payroll and related		1,955			3			1,958			*
Unearned revenue		4,538			(4,340	)		198			5
Net cash used in operating activities		(4,365	)		1,815			(2,550	)		1,2,3,4,5,6,7,8,9,*

CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions, net of cash acquired		(660	)		(1,463	)		(2,123	)		1
Proceeds from sale of investments		—			4,231			4,231			8
Purchase of investments		(415	)		(4,430	)		(4,845	)		8
Net cash used in investing activities		(2,074	)		(1,662	)		(3,736	)		1,8

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of contingent earn-out liabilities		(775	)		134			(641	)		1
Payment of installment payment liabilities		—			(218	)		(218	)		1
Net cash used in financing activities		(825	)		(84	)		(909	)		1

NET DECREASE IN CASH		(7,264	)		69			(7,195	)		1,2,3,4,5,6,7,8,9,*

CASH - ENDING	$	7,990		$	69		$	8,059			1,2,3,4,5,6,7,8,9,*

Statement of Cash Flows for the Year Ended December 31, 2022	As Reported			Adjustment			As Restated			Reference
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(778	)	$	(2,722	)	$	(3,500	)		1,2,3,6,8
Adjustment to deferred income taxes		(728	)		945			217			3
Depreciation and amortization		725			(305	)		420			1,7
Change in allowance for credit losses		—			36			36			*
Change in fair value of contingent earn-out liability		—			(180	)		(180	)		1
Intangible asset impairment, net		(149	)		149			—			1
Goodwill impairment		—			1,182			1,182			1,2
Unrealized gain (loss) on investments		179			(358	)		(179	)		8
Accounts receivable		(5,460	)		2,453			(3,007	)		5
Inventory		(1,637	)		692			(945	)		7
Prepaid expenses		(87	)		952			865			1
Deposits		(287	)		(324	)		(611	)		1
Accounts payable and accrued expenses		(932	)		(969	)		(1,901	)		1
Accrued payroll and related		(228	)		1			(227	)		*
Unearned revenue		(113	)		(602	)		(715	)		5
Net cash used in operating activities		(2,950	)		950			(2,000	)		1,2,3,5,6,7,8,*

CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions, net of cash acquired		(737	)		(1,138	)		(1,875	)		1
Proceeds from sale of investments		—			200			200			8
Purchase of investments		(9,966	)		(13	)		(9,979	)		8
Net cash used in investing activities		(11,329	)		(951	)		(12,280	)		1,8

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment for stock repurchase		(3,332	)		1			(3,331	)		*
Net cash used in financing activities		(2,694	)		1			(2,693	)		*