Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 50

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 cash to support the Company’s operating activities. 

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 expense for the three months ended
June 30, 2025 was approximately $114 thousand compared to income tax expense of approximately $3 thousand for the three months ended
June 30, 2024. Income tax expense for the three months ended June 30, 2025 accounted for 15.1% of income before income taxes of approximately
$0.8 million. Income tax expense for the three months ended June 30, 2024 accounted for 0.3% of loss before income taxes of approximately
$1.0 million. As of June 30, 2025 and 2024, the Company recorded an income tax provision comprised of state income taxes and a valuation
allowance against its net deferred tax assets. The Company recorded a full valuation allowance in 2022, the Company still maintains a
cumulative loss.

The change in the effective tax rate from
the comparison of 2025 and 2024 as noted above primarily relates to the Company’s estimated earnings and a partial release of the valuation
allowance from period to period. The Company recorded a full valuation allowance associated with its cumulative losses.

31

Net Income (Loss)

Our net income for the three months ended June
30, 2025 was approximately $0.6 million, compared to net loss of approximately $(1.0) million for the three months ended June 30, 2024.
This change was primarily due to an increase in gross profit, partially offset by an increase in operating expenses, for the reasons
described above.

Comparison of Six Months Ended June 30,
2025 and 2024 

The following table sets forth key components of our results of operations
during the six months ended June 30, 2025 and 2024 both in dollars and as a percentage of our sales.

    Six Months Ended June 30, 

    2025  
    2024 
  
    SALES 
    Amount
                                            
                                            (in thousands)  
    % of
 Revenues  
    Amount
(in thousands)  
    % of
 Revenues 
  
    Sales 
    $61,271  
     100.0% 
    $35,474  
     99.9%
  
    Sales – related parties