Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 377

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 377
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2 million was due to an increase in sales for the reasons described
above, which was partially offset by an increase of cost of sales of approximately $3.9 million for the reasons described above. For the
SLS segment, the increase in the dollar amount of gross profit was due to the acquisition of the Gander Group Assets in August 2024.

Gross profit
margin is defined as gross profit as a percentage of sales. The decrease in total gross profit
margin to 30.0% for the six months ended June 30, 2025 from 31.2% for the six months ended June 30, 2024 was primarily due to the
acquisition of the Gander Group business in August 2024, which operates at a lower gross margin than the Stran segment. The gross profit
margin for the Stran segment increased to 33.7% for the six months ended June 30, 2025 from 31.2% for the six months ended June 30, 2024.
The gross profit margin for the SLS segment was 21.4% for the six months ended June 30, 2025.

33

Operating
Expenses

Operating expenses by segment and in total were
as follows (in thousands):

    Six Months 
Ended 
June 30,   
       
    Six Months 
Ended 
June 30,   
       
    Increase / (Decrease) 

    2025  
    % of Total  
    2024  
    % of Total  
    $  
    % 
  
    Stran 
    $14,291  
     77.3% 
    $12,857  
     100.0% 
    $1,434  
     11.2%
  
    SLS 
     4,200  
     22.7% 
     —  
     —% 
     4,200  
     100.0%
  
    Total operating expenses 
    $18,491  
     100.0% 
    $12,857  
     100.0% 
    $5,634  
     43.8%

Operating
expenses consist of general and administrative expenses. Our total operating expenses increased 43.8% to
approximately $18.5 million for the six months ended June 30, 2025, from approximately