Stran & Company, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Income Tax Provision (Tables)

Income Tax Provision (Tables)

12 Months Ended

Dec. 31, 2024

The provision for income taxes consisted of the following:

	December 31, 2024		December 31, 2023
Current provision
Federal	$	—	$	33
State		5		8
Total current provision		5		41

Deferred provision
Federal		—		—
State		—		—
Total deferred provision		—		—

Provision for income taxes	$	5	$	41

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:

	December 31, 2024			December 31, 2023
U.S. statutory rate		21.00	%		21.00	%
State taxes, net of federal		5.08	%		(0.68	)%
Change in valuation allowance		(24.77	)%		(27.45	)%
Meals and entertainment expenses		—	%		(9.53	)%
Other permanent differences		(1.43	)%		4.74	%
Effective tax rate		(0.12	)%		(11.92	)%

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, 2024 and 2023:

	December 31, 2024			December 31, 2023
Deferred tax assets:
Net operating loss carryforwards	$	1,051		$	384
Charitable contributions		29			18
Lease liability		208			347
Stock compensation		219			184
Compensation expense		26			26
Unrealized gain/loss		3			3
Allowance for credit losses		167			44
UNICAP		30			27
Amortization		755			578
Total gross deferred tax assets		2,488			1,611
Less: Valuation allowance		(2,234	)		(1,216	)
Net deferred tax assets		254			395

Deferred tax liabilities:
Lease liability		(208	)		(349	)
Depreciation		(46	)		(46	)
Total deferred tax liabilities		(254	)		(395	)

Total deferred tax assets (liabilities)	$	—		$	—

Schedule of Uncertain Tax Positions

The Company’s accounting policy regarding interest expense associated with uncertain tax positions is included as a part of income tax expense. The Company did not record interest expense for 2024 as the amount was nominal.

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
Gross increase in unrecognized tax benefits for prior year		693
Decreases due to settlements		—
Unrecognized tax benefits as of December 31, 2024	$	3,141