Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 210

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 210
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 services.
If our operating and other expenses increase faster than anticipated due to inflation, our financial condition, results of operations
and cash flow could be materially adversely affected.

Our customers may cancel or decrease the
quantity of their orders, which could negatively impact our operating results.

Sales to many of our customers are on an order-by-order
basis. If we cannot fill customers’ orders on time, orders may be cancelled and relationships with customers may suffer, which could
have an adverse effect on us, especially if the relationship is with a major customer. Furthermore, if any of our customers experience
a significant downturn in their business, or fail to remain committed to our programs or brands, the customer may reduce or discontinue
purchases from us. The reduction in the amount of our products purchased by customers could have a material adverse effect on our business,
results of operations or financial condition.

In addition, some of our customers have experienced
significant changes and difficulties, including consolidation of ownership, increased centralization of buying decisions, buyer turnover,
restructurings, bankruptcies and liquidations. A significant adverse change in a customer relationship or in a customer’s financial
position could cause us to limit or discontinue business with that customer, require us to assume more credit risk relating to that customer’s
receivables or limit our ability to collect amounts related to previous purchases by that customer, all of which could have a material
adverse effect on our business, results of operations or financial condition.

20

We may be unable to identify or to complete
acquisitions or to successfully integrate the businesses we acquire.

We have evaluated, and may continue to evaluate,
potential acquisition transactions. We attempt to address the potential risks inherent in assessing the attractiveness of acquisition
candidates, as well as other challenges such as retaining the employees and integrating the operations of the businesses we acquire. Integrating
acquired operations involves significant risks and uncertainties, including maintenance of uniform standards, controls, policies and procedures;
diversion of management’s attention from normal business operations during the integration process; unplanned expenses associated
with integration efforts; and unidentified issues not discovered in due diligence, including legal contingencies. Acquisition valuations
require us to make certain estimates and assumptions to determine the fair value of the acquired entities (including the underlying assets
and liabilities). If our estimates or assumptions to value the acquired assets and liabilities are not accurate, we may be exposed to
losses, and/or unexpected usage of cash flow to fund the operations of the acquired operations that may be material.