Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 56

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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2024. As a percentage of sales, operating expenses decreased to 30.2% for the six months ended June
30, 2025, from 36.2% for the six months ended June 30, 2024. As a percentage of sales,
operating expenses of our Stran segment decreased to 33.5% for the six months ended June 30, 2025
from 36.2% for the six months ended June 30, 2024. As a percentage of sales, operating
expenses of our SLS segment were 22.6% for the six months ended June 30, 2025. For the Stran segment, the increase in the
dollar amount of operating expenses was primarily due to variable costs incurred due to our higher sales, expenses related to Stran’s
NetSuite enterprise resource planning system implementation, and legal and accounting expenses related to the re-audit of historical financial
statements. For the SLS segment, the increase in the dollar amount of operating expenses was due to the acquisition of the Gander Group
Assets in 2024.

Other
Income

Other income
consists of other income, interest income, and realized gain on investments. Our other income was approximately $280 thousand for
the six months ended June 30, 2025, compared to approximately $16 thousand for the six months
ended June 30, 2024. This change was primarily related to cost recoveries from prior periods
for estimated shipping charges. Our interest income was approximately $119 thousand for the
six months ended June 30, 2025, compared to approximately $175 thousand
for the six months ended June 30, 2024. This change was primarily due to a decrease
in interest generated from lower investments compared to the same period in the prior year. Our realized gain on investments was approximately
$67 thousand for the six months ended June 30, 2025, remaining relatively constant as compared to
approximately $73 thousand for the six months ended June 30, 2024.

Income Tax Provision

Income tax expense for the six months ended June
30, 2025 was approximately $76 thousand compared to income tax expense of approximately $3 thousand for the six months ended June 30,
2024. Income tax expense for the six months ended June 30, 2025 accounted for 23.3% of income before income taxes of approximately $0.3
million. Income tax expense