Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 220

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 220
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 gas, gasoline, wages, employee
benefits, insurance costs and other components of product cost unless we can recover such increases through proportional increases in
the prices for our products and services. Competitive and general economic conditions might limit our ability and that of our competitors
to increase prices to cover any increases in our product cost.

The promotional products, trade show and
events marketplace, loyalty and program management business industries are subject to pricing pressures that may cause us to lower the
prices we charge for our products and services that adversely affect our financial performance.

Many of our competitors also source their product
requirements from developing countries to achieve a lower cost operating environment, possibly with lower costs than our offshore facilities,
and those manufacturers may use these cost savings to reduce prices. Some of our competitors have more purchasing power than we do, which
may enable them to obtain products at lower costs. To remain competitive, we may adjust our product and service prices and margins from
time to time in response to these industry-wide pricing pressures. Additionally, increased customer demands for allowances, incentives
and other forms of economic support could reduce our margins and affect our profitability. Our financial performance will be negatively
affected by these pricing pressures if we are forced to reduce our prices and we cannot reduce our product costs proportionally or if
our product costs increase and we cannot increase our prices proportionally.

The apparel industry, including corporate
identity apparel, is subject to changing fashion trends and if we misjudge consumer preferences, the image of one or more of our brands
may suffer and the demand for our products may decrease.

The apparel industry, including corporate identity
apparel for promotional products, is subject to shifting customer demands and evolving fashion trends and our success is also dependent
upon our ability to anticipate and promptly respond to these changes. Failure to anticipate, identify or promptly react to changing trends
or styles may result in decreased demand for our products, as well as excess inventories and markdowns, which could have a material adverse
effect on our business, results of operations and financial condition. In addition, if we misjudge consumer preferences, our brand image
may be impaired.

26

Our success depends upon the continued protection
of our intellectual property rights and we may be forced to incur substantial costs to maintain, defend, protect and enforce our intellectual
property rights.

Our owned intellectual property and certain of
our licensed intellectual property have significant value and are instrumental to our ability to market our products. We cannot assure
that our owned or licensed intellectual property or the operation of our