Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 319

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 319
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 for promoting branded merchandise and other promotional
products, managing promotional loyalty and incentives, print collateral, and event assets, order and inventory management, and designing
and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings; creative
and merchandising services; warehousing/fulfillment and distribution; print-on-demand; kitting; point of sale displays; and loyalty and
incentive programs.

We earn the majority of our revenue from the sale
of unique, quality promotional products for a wide variety of industries primarily to support marketing efforts. We also derive revenues
from service fees from loyalty programs, event management, print services, fulfillment services, and technology services.

The majority of our revenue is derived from program
business, although only a small percentage of our customers are considered programmatic. For the three and six months ended June 30, 2024,
program clients accounted for 81.3% and 82.7% of total revenue, respectively. For the three and six months ended June 30, 2023, program
clients accounted for 77.4% and 79.2% of total revenue, respectively. Fewer than 350 of our more than 2,000 active customers are considered
to be program clients. Our active customers are any organizations, businesses, or divisions
of a parent organization which have purchased directly or indirectly from us within the last two years, and include organizations that
have bought from other organizations for which Stran acts as an established sub-contractor. We define transactional customers as customers
that place an order with us and do not have an agreement with us covering ongoing branding requirements. We define program clients as
clients that have a contractual obligation for specific ongoing branding needs. Program offerings include ongoing inventory, use of technology
platform, warehousing, creative services, and additional client support. Those program customers are geared towards longer-lasting relationships
that helps secure recurring revenue well into the future.

Our sales
decreased 4.1% for the three months ended June 30, 2024 compared to the three months ended June 30, 2023, and increased 6.4% for
the six months ended June 30, 2024 compared to the six months ended June 30, 2023, which we believe was primarily due to higher spending
from existing clients as well as business from new customers. We benefited from the acquisition of the assets of T R Miller Co.,