Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 48

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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.1 million for the reasons described above, which was partially offset by an increase of cost of sales of
approximately $2.9 million for the reasons described above. For the SLS segment, the increase in the dollar amount of gross profit
was due to the acquisition of the Gander Group Assets in August 2024.

Gross profit margin is defined as gross profit
as a percentage of sales. The decrease in total gross profit margin to 30.3% for the three months ended June 30, 2025 from 32.8% for
the three months ended June 30, 2024 was primarily due to the acquisition of the Gander Group Assets in August 2024, which operates at
a lower gross margin than the Stran segment. The gross profit margin for the Stran segment increased to 34.9% for the three months ended
June 30, 2025 from 32.8% for the three months ended June 30, 2024. The gross profit margin for the SLS segment was 21.0% for the three
months ended June 30, 2025.

Operating Expenses

Operating expenses by segment and in total were
as follows (in thousands):

    Three Months 
Ended
June 30,  
       
    Three Months 
Ended
June 30,  
       
    Increase / (Decrease) 

    2025  
    % of Total  
    2024  
    % of Total  
    $  
    % 
  
    Stran  
    $7,421  
     78.4% 
    $6,575  
     100.0% 
    $846  
     12.9%
  
    SLS 
     2,053  
     21.6% 
     —  
     —% 
     2,053  
     100.0%
  
    Total operating expenses 
    $9,474  
     100.0% 
    $6,575  
     100.0% 
    $2,899  
     44.1%

Operating expenses consist of general and administrative
expenses. Our total operating expenses increased 44.1% to approximately $9.5 million for the three months ended June 30, 2025, from approximately
$6.6 million for the three months ended