Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 44

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 net deferred tax assets. The Company recorded a valuation allowance due to a cumulative loss
over a three-year 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 2024.

Net Loss

Our net loss for the three months ended March 31, 2025 was approximately
$0.4 million, compared to approximately $0.5 million for the three months ended March 31, 2024. This change was primarily due to an increase
in gross profit, partially offset by an increase in operating expenses, for the reasons described above.

Liquidity and Capital Resources 

As of March 31,
2025, we had cash and cash equivalents of approximately $4.2 million
and investments of approximately $7.9 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 December 2021, and operations.

We believe that our current levels of cash will
be sufficient to meet our anticipated cash needs for our operations and cash payment obligations for both the 12 months ended March 31,
2026 and in the long-term beyond this period, including our anticipated costs associated with being a public reporting company. We may,
however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand
our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy
our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of
additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt
service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may
not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to
us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Summary of Cash Flows

The following table provides detailed information
about our net cash flows for the three months ended March 31, 2025 and 2024.

    Three Months Ended  March 31, 

    2025 (