Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 330

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 330
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 31.9% for the six months ended June 30, 2023 was primarily due to increases in product costs from vendors during the
three months ended March 31, 2024, partially offset by improvements in purchasing from vendors in the three months ended June 30, 2024.

Operating
Expenses

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 5.1% to
approximately $12.9 million for the six months ended June 30, 2024,
from approximately $12.2 million for the six months ended June 30, 2023.
As a percentage of sales, operating expenses decreased to 36.2% for the six months ended June 30, 2024,
from 36.7% for the six months ended June 30, 2023. The increase in the dollar amount
of operating expenses was primarily due to an increase in aggregate expenses related to the organic growth in our business.

Other
Income

Other income
consists of other income, interest income, and realized gain on investments. Our other income was approximately $16 thousand
for the six months ended June 30, 2024, compared to approximately $17 for the six
months ended June 30, 2023. This change was primarily due to noncash accretion expense related
to the installment payment liabilities. Our interest 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