Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 98

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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 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 six months ended June 30,
2024 was approximately $1.5 million, compared to approximately $1.4 million for the six months ended June 30, 2023. This change was primarily
due to an increase in costs of sales and general and administrative expenses, as described above, partially offset by the increase in
sales, as described above.

35

Liquidity and Capital Resources 

As of June 30,
2024, we had cash and cash equivalents of approximately $11.9 million
and investments of approximately $9.6 million. We have financed our operations primarily
through cash generated from our initial public offering of common stock and warrants to purchase common stock in November 2021, our private
placement of common stock and warrants to purchase common stock in December 2021, and operations.

We believe that our current levels of cash will
be sufficient to meet our anticipated cash needs for our operations and cash payment obligations for both the 12 months ended June 30,
2025 and in the long-term beyond this period, including our anticipated costs associated with being a public reporting company. We may,
however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand
our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy
our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of
additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt
service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may
not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to
us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Summary of Cash Flow

The following table provides detailed information
about our net cash flows for the six months ended June 30, 2024 and 2023:

    Six Months Ended June 30, 

    2024 (in thousands)  
    2023 (Restated) (in thousands) 
  
    Net cash provided by operating activities