Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 139

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 139
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.6% for the three months ended September 30, 2025 from 23.4% for the three months ended September 30, 2024. For
the Stran segment, the decrease in the dollar amount of operating expenses was primarily due to lower variable costs incurred associated
with the timing and payment on commissionable sales, expenses related to Stran’s NetSuite enterprise resource planning system implementation,
and legal and accounting expenses related to the re-audit of historical financial statements. For the SLS segment, the increase in the
dollar amount of operating expenses was due to the acquisition of the Gander Group Assets in 2024.

34

Other
Income

Other income
consists of other income (expense), interest income, and realized gain on investments. Our other income was approximately $304
thousand for the three months ended September 30, 2025,
compared to other expense of approximately $22 thousand for the three months ended September 30, 2024.
This change was primarily related to the release of a 2023 receivable reserve deemed to no longer be required. Our
interest income was approximately $87 thousand for the three months ended September
30, 2025, compared to approximately $64 thousand for
the three months ended September 30, 2024. This change was primarily due to higher interest earned
resulting from slightly higher average program deposit balances compared to the same period in the prior year. Our realized gain
on investments was $79 thousand for the three months ended September 30, 2025, compared to approximately
$103 thousand for the three months ended September 30, 2024. The decrease in investments
reflects our utilization of cash to support the Company’s operating activities. 

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 benefit for the three months ended
September 30, 2025 was approximately $72 thousand compared to income tax benefit of approximately $1 thousand for the three months ended
September 30, 2024. Income tax benefit for the three months ended September 30, 2025 accounted for 5.5% of loss before income taxes
of approximately $1.3 million. Income tax benefit for the three months ended September 30, 2024 accounted for 0.1% of loss before income
taxes of approximately $2.0 million.

The change in the effective