Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 149

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 149
---
 2024 accounted for 0.1% of loss before income
taxes of approximately $2.0 million. Income tax provision for the three months ended September 30, 2023 accounted for 12.0% of income
before income taxes of approximately $1.1 million. As of September 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 three months ended
September 30, 2024 was approximately $2.0 million, compared to net profit of approximately $1.3 million for the three months ended
September 30, 2023. This change was primarily due to the increase in operating expenses along with the decrease in gross profit for
the reasons described above.

37

Comparison of Nine Months Ended September
30, 2024 and 2023

The following table sets forth key components of our results of operations during the nine months ended September 30, 2024 and 2023 both
in dollars and as a percentage of our revenues.

    Nine Months Ended September 30, 

    2024  
    2023 (Restated) 

    Amount (in thousands)  
    % of Revenues  
    Amount (in thousands)  
    % of Revenues 
  
    SALES 

    Sales 
    $55,204  
     99.2% 
    $52,207  
     98.4%
  
    Sales – related parties 
     460  
     0.8% 
     853  
     1.6%
  
    Total sales 
     55,664  
     100.0% 
     53,060  
     100.0%

    COST OF SALES: 

    Cost of sales 
     38,278  
     68.8% 
     35,348  
     66.6%
  
    Cost of sales - related parties 
     354