Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 192

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 192
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 event 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.

For the Stran & Company, Inc. operating segment,
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 nine months ended September 30, 2024, program clients accounted for 83.2% and 83.6% of total revenue, respectively.
For the three and nine months ended September 30, 2023, program clients accounted for 80.5% and 79.8% 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 help secure recurring revenue well into the future.

Our sales
increased 2.4% for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, and increased
4.9% for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, which we believe was primarily
due to higher spending from existing clients as well as business from new customers. We benefited from the acquisition of the assets of
T R Miller Co., Inc., a Massachusetts corporation, or T R Miller, in