Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 43

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 43
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 may use these cost savings to reduce prices. Some of our competitors have more purchasing power than we do, which
may enable them to obtain products at lower costs. To remain competitive, we may adjust our product and service prices and margins from
time to time in response to these industry-wide pricing pressures. Additionally, increased customer demands for allowances, incentives
and other forms of economic support could reduce our margins and affect our profitability. Our financial performance will be negatively
affected by these pricing pressures if we are forced to reduce our prices and we cannot reduce our product costs proportionally or if
our product costs increase and we cannot increase our prices proportionally.

The apparel industry, including corporate
identity apparel, is subject to changing fashion trends and if we misjudge consumer preferences, the image of one or more of our brands
may suffer and the demand for our products may decrease.

The apparel industry, including corporate identity
apparel for promotional products, is subject to shifting customer demands and evolving fashion trends and our success is also dependent
upon our ability to anticipate and promptly respond to these changes. Failure to anticipate, identify or promptly react to changing trends
or styles may result in decreased demand for our products, as well as excess inventories and markdowns, which could have a material adverse
effect on our business, results of operations and financial condition. In addition, if we misjudge consumer preferences, our brand image
may be impaired.

26

Our success depends upon the continued protection
of our intellectual property rights and we may be forced to incur substantial costs to maintain, defend, protect and enforce our intellectual
property rights.

Our owned intellectual property and certain of
our licensed intellectual property have significant value and are instrumental to our ability to market our products. We cannot assure
that our owned or licensed intellectual property or the operation of our business does not infringe on or otherwise violate the intellectual
property rights of others. We cannot assure that third parties will not assert claims against us on any such basis or that we will be
able to successfully resolve such claims. In addition, the laws of some foreign countries do not allow us to protect, defend or enforce
our intellectual property rights to the same extent as the laws of the United States. We could also incur substantial costs to defend
legal actions relating to use of our intellectual property or prosecute legal actions against others using our intellectual property,
either of which could have a material adverse effect on our business, results of operations or financial condition. There also can be
no assurance that we will be able