Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 54

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 income was approximately $175 thousand
for the six months ended June 30, 2024, compared to approximately $284 thousand
for the six months ended June 30, 2023. This change was primarily due to a decrease in interest
generated from investments. Our realized gain on investments was approximately $73 thousand for the six months ended June 30, 2024,
compared to approximately $21 thousand for the six months ended June 30, 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 tax provision for the six months ended
June 30, 2024 was approximately $3 thousand compared to income tax provision of approximately $0.2 million for the six months ended June
30, 2023. Income tax provision for the six months ended June 2024 and 2023 accounted for 0.2% and 12.0%, respectively, of loss before
income taxes of approximately $1.5 million and approximately $1.3 million, respectively. As of June 30, 2024 and 2023, the Company recorded
an income tax provision comprised of state income taxes and a valuation allowance against its net deferred tax assets as well as a minimum
state tax liability. The company recorded a valuation allowance since its generated a deficit over a three-year cumulative period.

Based on management’s expectations of future
earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded
in 2023.

Net Loss

Our net loss for the six months ended June 30,
2024 was approximately $1.5 million, compared to approximately $1.4 million for the six months ended June 30, 2023. This change was primarily
due to an increase in costs of sales and general and administrative expenses, as described above, partially offset by the increase in
sales, as described above.

35

Liquidity and Capital Resources 

As of June 30,
2024, we had cash and cash equivalents of approximately $11.9 million
and investments of approximately $9.6 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