Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 40

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
 assets, order and inventory management, and designing
and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings; creative
and merchandising services; warehousing/fulfillment and distribution; print-on-demand; kitting; point of sale displays; and loyalty and
incentive programs.

We earn the majority of our revenue from the
sale of unique, quality promotional products for a wide variety of industries primarily to support marketing efforts. We also derive
revenues from service fees from loyalty programs, event management, print services, fulfillment services, and technology services.

The majority of our revenue is derived from program
business, although only a small percentage of our customers are considered programmatic. For the three and six months ended June 30,
2025, program clients accounted for 80.2% and 81.8% of total revenue, respectively. For the three and six months ended June 30, 2024,
program clients accounted for 81.3% and 82.7% of total revenue, respectively. Fewer than 350 of our more than 2,000 active customers
are considered to be program clients. Our active customers are any organizations, businesses, or divisions of a parent organization which
have purchased directly or indirectly from us within the last two years, and include organizations that have bought from other organizations
for which Stran acts as an established sub-contractor. We define transactional customers as customers that place an order with us and
do not have an agreement with us covering ongoing branding requirements. We define program clients as clients that have a contractual
obligation for specific ongoing branding needs. Program offerings include ongoing inventory, use of technology platform, warehousing,
creative services, and additional client support. Those program customers are geared towards longer-lasting relationships that helps
secure recurring revenue well into the future.

Since February 2025 and as of the date of this
report, the United States has implemented and then amended additional tariffs on goods imported from other countries a number of times,
particularly with respect to tariffs on imports from China. As of July 31, 2025, the United States had announced that the previously-imposed
additional tariffs of up to 145% on most goods imported from China would remain reduced at a combined rate of 30% for a 90 day period
effective May 14, 2025. Unless further action is taken, these tariffs are scheduled to increase to a combined rate of 54%