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

Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023	As Reported			Adjustment			As Restated			Reference
Cash and cash equivalents	$	15,271		$	66		$	15,337				*
Investments		10,278			(67	)		10,211				*
Accounts receivable, net		13,959			(65	)		13,894			4,5
Accounts receivable – related parties		—			130			130			4
Deferred income taxes		1,542			(1,542	)		—			3
Inventory		5,821			(558	)		5,263			7,9
Prepaid corporate taxes		87			(87	)		—			3
Total current assets		49,630			(2,123	)		47,507			3,4,5,7,9,	*

Intangible assets, net		10,712			(7,427	)		3,285			1
Goodwill		—			810			810			1,2
Other assets		—			23			23			1
Right of use asset - office leases		1,470			122			1,592			1
Total other assets		12,182			(6,472	)		5,710			1,2
Total assets	$	63,107		$	(8,595	)	$	54,512			1,2,3,4,5,7,9,	*

Accounts payable and accrued expenses	$	3,012		$	183		$	3,195			3
Accrued payroll and related		997			2			999				*
Unearned revenue		2,291			(152	)		2,139			5
Current portion of contingent earn-out liabilities		3,187			(2,793	)		394			1
Current portion of installment payment liabilities		—			750			750			1
Current portion of lease liability		676			(145	)		531			1
Total current liabilities		19,491			(2,155	)		17,336			1,3,5,	*

Long-term contingent earn-out liabilities		4,883			(4,008	)		875			1
Long-term installment payment liabilities		—			707			707			1
Long-term lease liability		763			306			1,069			1
Total long-term liabilities		5,646			(2,995	)		2,651			1
Total liabilities		25,137			(5,150	)		19,987			1,3,5,	*

Additional paid-in capital		38,417			(167	)		38,250			1
Accumulated deficit		(449	)		(3,176	)		(3,625	)		1,2,3,6,7,	*
Accumulated other comprehensive loss		—			(102	)		(102	)		8
Total stockholders’ equity		37,970			(3,445	)		34,525			1,2,3,6,7,8,	*
Total liabilities and stockholders’ equity	$	63,107		$	(8,595	)	$	54,512			1,2,3,5,6,7,8,	*

Statement of Operations for the Three Months Ended June 30, 2023	As Reported			Adjustment			As Restated			Reference
Sales	$	17,470		$	(185	)	$	17,285			6
Sales – related parties		—			130			130			4
Total sales		17,470			(55	)		17,415			6,4

Cost of sales		12,393			(326	)		12,067			6
Cost of sales – related parties		—			100			100			4
Total cost of sales		12,393			(226	)		12,167			6

GROSS PROFIT		5,077			171			5,248			6

General and administrative expenses		6,351			(106	)		6,245			1,	*
Total operating expenses		6,351			(106	)		6,245			1,	*

LOSS FROM OPERATIONS		(1,274	)		277			(997	)		1,6,	*

Other income		15			2			17			1
Unrealized gain (loss) on investments		(33	)		33			—			8
Realized gain on investments		—			9			9			8
Total other income		128			44			172			1,8

LOSS BEFORE INCOME TAXES		(1,146	)		321			(825	)		1,6,8,	*

Provision for income taxes		(308	)		407			99			3

NET LOSS	$	(838	)	$	(86	)	$	(924	)		1,3,6,8	*

NET LOSS PER COMMON SHARE
Basic	$	(0.05	)	$	0.00		$	(0.05	)		1,3,6,8	*
Diluted	$	(0.05	)	$	0.00		$	(0.05	)		1,3,6,8	*

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		18,540,648			(8,306	)		18,532,342				*
Diluted		18,540,648			(8,306	)		18,532,342				*

Statement of Operations for the Six Months Ended June 30, 2023	As Reported			Adjustment			As Restated			Reference
Sales	$	33,246		$	10		$	33,256			6
Sales – related parties		—			130			130			4
Total sales		33,246			140			33,386			6

Cost of sales		23,476			(847	)		22,629			6,9
Cost of sales – related parties		—			100			100			4
Total cost of sales		23,476			(747	)		22,729			6

GROSS PROFIT		9,770			887			10,657			6

General and administrative expenses		12,430			(194	)		12,236			1,	*
Total operating expenses		12,430			(194	)		12,236			1,	*

LOSS FROM OPERATIONS		(2,660	)		1,081			(1,579	)		1,6,	*

Other income		72			(55	)		17			1
Unrealized gain (loss) on investments		99			(99	)		—			8
Realized gain on investments		—			21			21			8
Total other income		455			(133	)		322			1,8

LOSS BEFORE INCOME TAXES		(2,205	)		948			(1,257	)		1,6,8	*

Provision for income taxes		(672	)		823			151			3

NET LOSS	$	(1,533	)	$	125		$	(1,408	)		1,3,6,8,	*

NET LOSS PER COMMON SHARE
Basic	$	(0.08	)	$	0.00		$	(0.08	)		1,3,6,8,	*
Diluted	$	(0.08	)	$	0.00		$	(0.08	)		1,3,6,8,	*

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
Basic		18,540,834			(36,073	)		18,504,761				*
Diluted		18,540,834			(36,073	)		18,504,761				*

	Common Stock
Statement of Stockholders’ Equity for the Six Months Ended June 30, 2023	Shares			Value		Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings (Accumulated Deficit)			Stock-holders’ Equity
Balance, June 30, 2023 (As Reported)		18,540,834		$	2	$	38,417		$	—		$	(449)		$	37,970
Adjustments		(186	)		—		(167	)		(102	)		(3,176	)		(3,445	)
Balance, June 30, 2023 (As Restated)		18,540,648		$	2	$	38,250		$	(102	)	$	(3,625	)	$	34,525

Statement of Cash Flows for the Six Months Ended June 30, 2023	As Reported			Adjustment			As Restated			Reference
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,533	)	$	125		$	(1,408	)		1,3,4,6,8,	*
Deferred Income Taxes (Credit)		(701	)		701			—
Depreciation and amortization		654			(247	)		407			1,7
Adjustment to reconcile operating lease expense to cash paid		—			26			26				*
Change in allowance for credit losses		—			(59	)		(59	)		5,	*
Intangible asset impairment, net		(68	)		68			—			1
Stock-based compensation		110			27			137
Unrealized gain (loss) on investments		(99	)		99			—			8
Changes in operating assets and liabilities:
Accounts receivable, net		484			923			1,407			5
Inventory		1,047			499			1,546			7
Prepaid taxes		—			122			122
Prepaid expenses		(309	)		5			(304	)			*
Accounts payable and accrued expenses		(1,039	)		(441	)		(1,480	)			*
Unearned revenue		1,657			(436	)		1,221			5
Net cash used in operating activities		2,327			1,412			3,739			1,3,5,6,7,8,	*

CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisitions, net of cash acquired		(741	)		(1,382	)		(2,123	)		1
Proceeds from sale of investments		—			1,000			1,000			8
Purchase of investments		(403	)		(952	)		(1,355	)		8
Net cash used in investing activities		(1,723	)		(1,334	)		(3,057	)		1,8

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of contingent earn-out liabilities		(586	)		162			(424	)		1
Payment of installment payment liabilities		—			(175	)		(175	)		1
Net cash used in financing activities		(586	)		(13	)		(599	)		1

NET DECREASE IN CASH		18			65			83			1,3,5,6,7,8,	*
CASH - ENDING	$	15,272		$	65		$	15,337			1,3,5,6,7,8,	*