Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 57

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 for the six months ended June 30, 2024 accounted for 0.2% of loss before income taxes of approximately $1.5
million. As of June 30, 2025 and 2024, the Company recorded an income tax provision based upon its current estimate of taxable income
forecasted for 2025. The Company recorded a full valuation allowance in 2022, the Company still maintains a cumulative loss.

The change in the effective tax rate from
the comparison of 2025 and 2024 as noted above primarily relates to the Company’s estimated earnings and a partial release of the valuation
allowance from period to period. The Company recorded a full valuation allowance associated with its cumulative losses.

34

Net Income (Loss)

Our net income for the six months ended June 30,
2025 was approximately $0.3 million, compared to net loss of approximately $(1.5) million for the six months ended June 30, 2024. This
change was primarily due to an increase in gross profit, partially offset by an increase in operating expenses, for the reasons described
above.

Liquidity and Capital Resources 

As of June 30,
2025, we had cash and cash equivalents of approximately $13.1 million
and investments of approximately $5.0 million. We have financed our operations primarily
through cash generated from our initial public offering of common stock and warrants to purchase common stock in November 2021, our private
placement of common stock and warrants to purchase common stock in December 2021, and operations.

We believe that our current levels of cash will
be sufficient to meet our anticipated cash needs for our operations and cash payment obligations for both the 12 months ended June 30,
2026 and in the long-term beyond this period, including our anticipated costs associated with being a public reporting company. We may,
however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand
our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy
our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of
additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt
service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may
not be available in amounts or on terms