Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 200

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 200
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 interest income, and realized gain on investments. Our other expense was approximately $22
thousand for the three months ended September 30, 2024,
compared to other income of approximately $202 thousand for the three months ended September 30, 2023.
This change was primarily due to noncash accretion expense related to certain installment payment liabilities. Our
interest income was approximately $64 thousand for the three months ended September
30, 2024, compared to approximately $183 thousand for
the three months ended September 30, 2023. This change was primarily due to a decrease in interest
generated from investments. Our realized gain on investments was approximately $103 thousand for the three months ended September
30, 2024, compared to approximately $77 thousand for the three months ended September 30,
2023. This change was primarily due to the sale of investments above their initial 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
September 30, 2024 was approximately $(1) thousand compared to income tax provision of approximately $(0.1) million for the three months
ended September 30, 2023. Income tax provision for the three months ended September 30, 2024 accounted for 0.1% of loss before income
taxes of approximately $2.0 million. Income tax provision for the three months ended September 30, 2023 accounted for 12.0% of income
before income taxes of approximately $1.1 million. As of September 30, 2024 and 2023, the Company recorded an income tax provision comprised
of state income taxes and a valuation allowance against its net deferred tax assets as well as a minimum state tax liability. The company
recorded a valuation allowance since its generated a deficit over a three-year cumulative period.

Based on management’s expectations of future
earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded
in 2023.

Net Loss

Our net loss for the three months ended
September 30, 2024 was approximately $2.0 million, compared to net profit of approximately $1.3 million for the three months ended
September 30, 2023. This change was primarily due to the increase in operating expenses along with the decrease in gross profit for
the