Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 146

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 146
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 months ended September 30, 2024. As a percentage of sales, operating
expenses of our SLS segment decreased to 22.9% for the nine months ended September 30, 2025 from
23.4% for the nine months ended September 30, 2024. For the Stran segment, the increase in the
dollar amount of operating expenses was primarily due to expenses related to Stran’s NetSuite enterprise resource planning system
implementation, in addition to legal and accounting expenses related to the re-audit of historical financial statements. For the SLS segment,
the increase in the dollar amount of operating expenses was due to the acquisition of the Gander Group Assets in 2024.

Other
Income

Other income
consists of other income, interest income, and realized gain on investments. Our other income was approximately $584 thousand for
the nine months ended September 30, 2025, compared to other expense of approximately $6 thousand
for the nine months ended September 30, 2024. This change was primarily related to the release
of a 2023 receivable reserve deemed to no longer be required and cost recoveries from prior periods for estimated shipping charges. Our
interest income was approximately $206 thousand for the nine months ended September 30, 2025,
compared to approximately $239 thousand for the nine months ended September 30, 2024.
This change was primarily due to a decrease in interest generated from lower investments
compared to the same period in the prior year. Our realized gain on investments was approximately $146 thousand for the nine months ended
September 30, 2025, compared to approximately $176 thousand for the nine months ended September
30, 2024. The decrease in investments reflects our utilization of cash to support the Company’s
operating activities. 

38

Income Tax Provision

Income tax expense for the nine months ended September
30, 2025 was approximately $4 thousand compared to income tax expense of approximately $2 thousand for the nine months ended September
30, 2024. Income tax expense for the nine months ended September 30, 2025 accounted for 0.4% of loss before income taxes of approximately
$1.0 million. Income tax benefit for the nine months ended September 30, 2024 accounted for 0.1% of loss before income taxes of approximately
$3.6 million.

The change in the effective tax rate from the
comparison