Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 217

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 217
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 of bankruptcies by our customers during economic downturns and financial crises. While we maintain
an allowance for doubtful receivables for potential credit losses based upon our historical trends and other available information, in
times of economic turmoil, there is heightened risk that our historical indicators may prove to be inaccurate. The inability to collect
on sales to significant customers or a group of customers could have a material adverse effect on our results of operations.

There is a risk of dependence on one or
a group of customers.

During the fiscal year ended December 31, 2024,
our top ten customers accounted for 38.1% of revenues, and our top customer accounted for 8.4% of revenues. During the fiscal year ended
December 31, 2023, our top ten customers accounted for 46.1% of revenues, and our top customer accounted for 14.4% of revenues. If we
are unable to retain our current customers or find new major customers or gain major new engagements from existing customers to replace
any nonrecurring contracts, there may be material adverse effects on our financial condition or results of operations. If on the other
hand we successfully source major new contracts, the risk that we may become dependent on one or a few customers may increase. This potential
dependency could threaten the sustainability of our growth and have a material adverse effect on our financial condition or results of
operations if we are unable to retain such major contracts or replace them with similarly major contracts on a regular basis.

24

Our business incurs significant freight
and transportation costs. Any changes in our shipping arrangements or any interruptions in shipping could harm our business, results of
operations and financial condition.

We incur transportation expenses to ship our products
to our customers. Significant increases in the costs of freight and transportation could have a material adverse effect on our results
of operations, as there can be no assurance that we could pass on these increased costs to our customers. Government regulations can and
have impacted the availability of drivers, which will be a significant challenge to the industry. Costs to employ drivers have increased
and transportation disruptions have become more prevalent.

If we are not able to negotiate acceptable pricing
and other terms with these vendors or they experience performance problems or other difficulties, it could negatively impact our business
and results of operations and negatively affect the experiences of our customers, which could affect the degree to which they continue
to do business with us. Disruption to delivery services due to inclement weather, climate change, or political