Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 257

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 257
---
 $5.4 million,
or 33.9% of sales, for the three months ended March 31, 2023.
The increase in the dollar amount of gross profit was due to an increase in sales of approximately $2.9 million
for the reasons described above, partially offset by an increase in cost of sales of approximately $2.6 million
in aggregate for the reasons described above. The decrease in gross profit margin to 29.8% for the three months ended March
31, 2024 compared to 33.9% for the three months ended March 31, 2023 was primarily due to increases in product costs from vendors.

Operating Expenses

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 4.8%,
or approximately $288 thousand, to approximately $6.3 million
for the three months ended March 31, 2024, from approximately $6.0 million
for the three months ended March 31, 2023. As a percentage of sales, operating expenses decreased
to 33.4% for the three months ended March 31, 2024, from 37.5% for the three months
ended March 31, 2023. The increase in the dollar amount of operating expenses was primarily
due to an increase in aggregate expenses related to the organic growth in our business.

Other Income

Other income consists
of other income, interest income, and realized gain on investments. Our other income was approximately $15 thousand for the three months
ended March 31, 2024, compared to approximately $0 for the three months ended March 31, 2023. This change was primarily due to noncash
accretion expense related to certain installment payment liabilities. Our interest income was approximately $93 thousand for the three
months ended March 31, 2024, compared to approximately $138 thousand for the three months ended March 31, 2023. This change was primarily
due to a decrease in interest generated from investments. Our realized gain on investments was approximately $70 thousand for the three
months ended March 31, 2024, compared to approximately $12 thousand for the three months ended March 31, 2023. This change was primarily
due to the recording of all investments at estimated fair value.

Income Tax Provision

Income tax provision
reflects statutory tax rates in the jurisdictions in which we operate adjusted for permanent book/tax differences.

Income