Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 83

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 83
---
0 for the three months ended March 31, 2024. As a percentage of sales, operating expenses decreased to 31.4% for the three months ended
March 31, 2025, from 33.4% for the three months ended March 31, 2024. As a percentage of sales, operating expenses of our Stran segment
decreased to 32.8% for the three months ended March 31, 2025 from 33.4% for the three months ended March 31, 2024. As a percentage of
sales, operating expenses of our SLS segment were 27.7% for the three months ended March 31, 2025. For the Stran segment, the increase
in the dollar amount of operating expenses was primarily due to expenses related to Stran's NetSuite enterprise resource planning system
implementation, acquisition and integration of the Gander Group Assets, and legal and accounting expenses related to the re-audit of historical
financial statements. For the SLS segment, the increase in the dollar amount of operating expenses was due to the acquisition of the Gander
Group Assets in 2024.

Other
(Expense) Income

Other (expense)
income consists of other income, interest income, change in fair value of contingent earn-out liability, and realized gain on investments.
Our other (expense) income was approximately $(5) thousand for the three months ended
March 31, 2025, compared to approximately $15 thousand for the three months ended March 31,
2024. This change was primarily due to factoring fees. Our
interest income was approximately $42 thousand for the three months ended March 31,
2025, compared to approximately $93 thousand for
the three months ended March 31, 2024. This change was primarily due to a decrease in interest generated
from investments. Our realized gain on investments was approximately $67 thousand for the three months ended March 31, 2025, compared
to approximately $70 thousand for the three months ended March 31, 2024.

Income Tax Provision

Income tax provision reflects statutory tax rates
in the jurisdictions in which we operate adjusted for permanent book/tax differences.

29

Income tax benefit for the three months ended
March 31, 2025 was approximately $(38) thousand compared to income tax provision of approximately $— thousand for the three months
ended March 31, 2024. Income tax provision for the