Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 50

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 50
---
 2023 was primarily due to improvements in purchasing from suppliers.

Operating
Expenses

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 5.3% to
approximately $6.6 million for the three months ended June 30, 2024,
from approximately $6.2 million for the three months ended June 30, 2023.
As a percentage of sales, operating expenses increased to 39.4% for the three months ended June 30, 2024,
from 35.9% for the three months ended June 30, 2023. The increase in the dollar amount
of operating expenses was primarily due to an increase in aggregate expenses related to the organic growth in our business.

Other
Income

Other income
consists of other income, interest income, and realized gain on investments. Our other income was approximately $1 thousand
for the three months ended June 30, 2024, compared to approximately $17 for the three
months ended June 30, 2023. This change was primarily due to noncash accretion expense related
to certain installment payment liabilities. Our interest income was approximately $82 thousand
for the three months ended June 30, 2024, compared to approximately $146 thousand
for the three months ended June 30, 2023. This change was primarily due to a decrease in
interest generated from investments. Our realized gain on investments was approximately $3 thousand for the three months ended
June 30, 2024, compared to approximately $9 thousand for the three months ended June 30,
2023. This change was primarily due to the recording of all investments at estimated fair value.

Income Tax Provision

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

Income tax provision for the three months ended
June 30, 2024 was approximately $3 thousand compared to income tax provision of approximately $0.1 million for the three months ended
June 30, 2023. Income tax provision for the three months ended June 30, 2024 and 2023 accounted for 0.2% and 12.0%, respectively, of loss
before income taxes of approximately $1.0 million and approximately $0.8 million, respectively. As of June 30, 2024 and 2023, the Company
recorded an income tax provision comprised of state income taxes and a