Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 967

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 4
Chunk 967
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 dollar amount of operating expenses was primarily due to expenses related to Stran’s NetSuite enterprise
resource planning system implementation, acquisition and integration of the Gander Group Assets, 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 August 2024.

Other
Income

Other income
consists of other income, interest income, change in fair value of contingent earn-out liability, and realized gain on investments. Our
other income, net was approximately $38 thousand for the year ended December 31, 2024,
compared to approximately $186 thousand for the year ended December 31, 2023. This
change was primarily due to an increase in noncash accretion expense in 2024 relative to 2023, related to certain installment payment
liabilities. Our interest income was approximately $305 thousand
for the year ended December 31, 2024, compared to approximately $570 thousand
for the year ended December 31, 2023. This change was primarily due to a decrease in interest
generated from investments. Our change in fair value of contingent earn-out liability was approximately $208 thousand for the year
ended December 31, 2024, compared to approximately $65 thousand for the year ended December 31, 2023. This change was primarily due to
an update to the estimated fair value of the remaining contingent earn-out liabilities related to business combinations. Our realized
gain on investments was approximately $208 thousand for the year ended December 31, 2024, compared to
approximately $103 thousand for the year ended December 31, 2023. This change was primarily
due to the sale of investments above their initial 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 year ended December
31, 2024 was approximately $5 thousand compared to income tax provision of approximately $41 thousand for the year ended December 31,
2023. Income tax provision for the year ended December 31, 2024 accounted for 0.1% of loss before income taxes of approximately $4.1 million.
Income tax provision for the year ended December 31, 2023 accounted for 11.9% of income before income taxes of approximately $0.3 million