Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 51

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 valuation allowance against its net deferred tax assets as well
as a minimum state tax liability. The company recorded a valuation allowance since its generated a deficit over a three-year cumulative
period.

Based on management’s expectations of future
earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded
in 2023.

33

Net Loss

Our net loss for the three months ended June 30,
2024 was approximately $1.0 million, compared to approximately $0.9 million for the three months ended June 30, 2023. This change was
primarily due to the increase in operating expenses for the reasons described above, partially offset by the increase in gross profit.

Comparison of Six Months Ended June 30,
2024 and 2023

The following table sets forth key components of our results of operations during the six months ended June 30, 2024 and 2023 both in
dollars and as a percentage of our revenues.

    Six Months Ended June 30, 

    2024  
    2023 (Restated) 

    Amount (in thousands)  
    % of Revenues  
    Amount (in thousands)  
    % of Revenues 
  
    SALES 

    Sales 
    $35,474  
     99.9% 
    $33,256  
     99.6%
  
    Sales – related parties 
     46  
     0.1% 
     130  
     0.4%
  
    Total sales 
     35,520  
     100.0% 
     33,386  
     100.0%

    COST OF SALES: 

    Cost of sales 
     24,405  
     68.7% 
     22,629  
     67.8%
  
    Cost of sales - related parties 
     35  
     0.1% 
     100  
     0.3%
  
    Total cost of sales 
     24,440  
     68.8% 
     22,729  
     68.1%

    GROSS PROFIT 
     11,080  
     31.2% 
     10,657  
     31.9%

    OPERATING EXPENSES: 

    General and administrative