Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 31

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1
Chunk 31
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 agreement or regulation being altered which
adversely affects our company. The U.S. government may decide to impose or alter existing import quotas, duties, tariffs or other restrictions
on products or raw materials sourced from those countries, which include countries from which we import raw materials or in which we manufacture
our products. Any such quotas, duties, tariffs or restrictions could have a material adverse effect on our business, results of operations
or financial condition.

Shortages of supply of merchandise from
suppliers, interruptions in our manufacturing, and local conditions in the countries in which we source goods and materials could adversely
affect our results of operations. 

Along with
many companies that source goods and raw materials from abroad, we are currently experiencing continued supply disruptions and delays
due to a variety of reasons. These changes are partially driven by interruptions in global supply chains (including as a result of port
congestion, canal blockages and disruptions, and trucking shortages) and partially by a shift in customer buying habits to e-commerce,
which has the effect of increasing demand for shipping capacity from Asia, leading to capacity constraints. Both factors have increased
shipping times as well as the price of shipping, whether by sea, air, rail, or vehicle. Shipping delays combined with significant increases
in orders for our products have recently created, and are expected to continue to create, inventory pressure for us.

19

As a distributor, we buy merchandise both from
multiple supply sources and from a network of factories in which we have developed direct relationships around the globe over the past
30 years. However, an unexpected interruption in any of the sources or facilities may temporarily adversely affect our results of operations
until alternate sources or facilities can be secured. We rely on the supply of different types of raw materials as well as textiles, including
plastic, glass, fabric and metal for our promotional products. Further, our suppliers generally source or manufacture finished goods in
parts of the world that may be affected by economic uncertainty, political unrest, labor disputes, health emergencies, or the imposition
of duties, tariffs or other import regulations by the United States.

Increases in the price of merchandise and
raw materials used to manufacture our products could materially increase our costs and decrease our profitability.

The principal components in our promotional products
are plastic, glass, fabric and metal. The prices we pay for these fabrics and components and our merchandise are dependent on the market
price for the raw materials used to produce them, primarily cotton and chemical components of synthetic fabrics including raw materials