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

Annual report pursuant to Section 13 and 15(d)

Income Tax Provision (Tables)

Income Tax Provision (Tables)

12 Months Ended

Dec. 31, 2023

The provision for income taxes consisted of the following:

	December 31, 2023		December 31, 2022
	(Restated)		(Restated)
Current provision
Federal	$	33	$	—
State		8		5
Total current provision		41		5

Deferred provision
Federal		—		170
State		—		47
Total deferred provision		—		217

Provision for income taxes	$	41	$	222

Schedule of Statutory Federal Income Tax Rate

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate were as follows:

	For the Year Ended
	December 31, 2023			December 31, 2022
	(Restated)			(Restated)
U.S. statutory rate		21.00	%		21.00	%
State taxes, net of federal		(0.68	)%		5.64	%
Change in valuation allowance		(27.45	)%		(33.28	)%
Return to provision		—	%		—	%
Meals and entertainment expenses		(9.53	)%		—%
Other permanent differences		4.74	%		(0.13	)%
Effective tax rate		(11.92	)%		(6.77	)%

Schedule of Deferred Tax Assets and Liabilities

The table below presents the effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2023 and 2022:

	December 31, 2023			December 31, 2022
		(Restated)			(Restated)
Deferred tax assets:
Net operating loss carryforwards	$	384		$	613
Charitable contributions		18			8
Lease liability		347			211
Stock compensation		184			135
Compensation expense		26			27
Unrealized gains		3			48
Section 163j		—			37
Allowance for credit losses		44			30
UNICAP		27			49
Amortization		578			261
Other		—			—
Total gross deferred tax assets		1,611			1,419
Less: Valuation allowance		(1,216	)		(1,166	)
Net deferred tax assets		395			253

Deferred tax liabilities:
Lease liability		(349	)		(210	)
Depreciation		(46	)		(43	)
Other		—			—
Total deferred tax liabilities		(395	)		(253	)

Total deferred tax assets (liabilities)	$	—		$	—

Schedule of Uncertain Tax Positions

The Company expects to release its FIN 48 reserve as well as making corresponding adjustment to its NOLs in 2025.

	(Restated)
Unrecognized tax benefits as of January 1, 2022	$	1,752
Gross increase in unrecognized tax benefits for prior year positions		433
Decreases due to settlements		—
Unrecognized tax benefits as of December 31, 2022	$	2,185
Gross increase in unrecognized tax benefits for prior year		263
Decreases due to settlements		—
Unrecognized tax benefits as of December 31, 2023	$	2,448