Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 147

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 147
---
 of 2025 and 2024 as noted above primarily relates to our estimated earnings and a partial release of the valuation allowance
on our gross deferred tax assets less deferred tax liabilities from period to period.

Net Loss

Our net loss for the nine months ended September
30, 2025 was approximately $1.0 million, compared to net loss of approximately $3.6 million for the nine months ended September 30, 2024.
This change was primarily due to an increase in gross profit, offset by an increase in operating expenses, for the reasons described above.

Liquidity and Capital Resources 

As of September
30, 2025, we had cash and cash equivalents of approximately $6.7 million
and investments of approximately $5.1 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 September
30, 2026 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 Flows

The following table provides detailed information
about our net cash flows for the nine months ended September 30, 2025 and 2024 (in thousands).

    Nine Months Ended
 September 30, 

    2025  
    2024 
  
    Net cash (used in