Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 49

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
)%

    Provision for income taxes 
     3  
     —% 
     99  
     0.6%

    NET LOSS 
    $(1,025) 
     (6.1)% 
    $(924) 
     (5.3)%

Sales

Sales consist
primarily of the selling price of the merchandise, service or outbound shipping and handling charges, less discounts, coupons redeemed,
returns and credits.

Our sales decreased 4.1%
to approximately $16.7 million for the three
months ended June 30, 2024, from approximately $17.3 million
for the three months ended June 30, 2023. The decrease was primarily due to lower
spending from new and existing clients, partially offset from the acquisition of the assets of T R Miller in June 2023.

32

Cost
of Sales

Our total
cost of sales decreased 7.7% to approximately $11.2 million
for the three months ended June 30, 2024, from approximately $12.2 million
for the three months ended June 30, 2023. As a percentage of sales, cost of sales decreased
to 67.2% for the three months ended June 30, 2024 from 69.9% for the three months
ended June 30, 2023. The decrease in the dollar amount of cost of sales was primarily due
to improvement in purchasing from suppliers along with a decrease in sales of 4.1% from period to period.

Gross
Profit

Gross profit
consists of sales less total costs of sales. Our gross profit increased 4.2% to approximately
$5.5 million, or 32.8% of sales, for
the three months ended June 30, 2024, from approximately $5.2 million,
or 30.1% of sales, for the three months ended June 30, 2023.
The increase in the dollar amount of gross profit was due to a decrease in cost of sales of approximately $0.9 million
for the reasons described above, which was offset by a decrease in sales of approximately $0.7 million
in aggregate for the reasons described above. The increase in gross profit margin to 32.8% for the three months ended June
30, 2024 compared to 30.1% for the three months ended June 30,