Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 363

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 363
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 any forward-looking statements, whether as a result
of new information, future events, changed circumstances or any other reason.

Overview 

We are an outsourced marketing solutions provider
that sells branded products to customers. We purchase products and branding through various third-party manufacturers and decorators
and resell the finished goods to customers.

In addition to selling branded products, we offer
clients custom sourcing capabilities; a flexible and customizable e-commerce solution for promoting branded merchandise and other promotional
products, managing promotional loyalty and incentives, print collateral, and event assets, order and inventory management, and designing
and hosting online retail popup shops, fixed public retail online stores, and online business-to-business service offerings; creative
and merchandising services; warehousing/fulfillment and distribution; print-on-demand; kitting; point of sale displays; and loyalty and
incentive programs.

We earn the majority of our revenue from the
sale of unique, quality promotional products for a wide variety of industries primarily to support marketing efforts. We also derive
revenues from service fees from loyalty programs, event management, print services, fulfillment services, and technology services.

The majority of our revenue is derived from program
business, although only a small percentage of our customers are considered programmatic. For the three and six months ended June 30,
2025, program clients accounted for 80.2% and 81.8% of total revenue, respectively. For the three and six months ended June 30, 2024,
program clients accounted for 81.3% and 82.7% of total revenue, respectively. Fewer than 350 of our more than 2,000 active customers
are considered to be program clients. Our active customers are any organizations, businesses, or divisions of a parent organization which
have purchased directly or indirectly from us within the last two years, and include organizations that have bought from other organizations
for which Stran acts as an established sub-contractor. We define transactional customers as customers that place an order with us and
do not have an agreement with us covering ongoing branding requirements. We define program clients as clients that have a contractual
obligation for specific ongoing branding needs. Program offerings include ongoing inventory, use of technology platform, warehousing,
creative services, and additional client support. Those program customers are geared towards longer-lasting relationships that helps
secure recurring revenue well into the future.

Since February 2025 and as of the date of this
report, the United States has implemented and