Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 153

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 153
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 approximately $0.9 million
for the reasons described above, which was partially offset by a decrease in cost of sales of approximately $0.2 million
for the reasons described above. The decrease in gross profit margin for the Stran segment to 31.4% for the nine months ended September
30, 2024 compared to 32.1% for the nine months ended September 30, 2023 was primarily due to increases in product costs from vendors.
For the SLS segment, the increase in the dollar amount was due to the acquisition of the Gander Group Assets in August 2024.

Operating
Expenses

Operating expenses by segment and in total were
as follows:

    Nine Months Ended
September 30,  
       
    Nine Months Ended
September 30,  
       
    Increase / (Decrease) 

    2024  
    % of Total  
    2023  
    % of Total  
    $  
    % 

    Stran 
    $20,176  
     96.1% 
    $17,968  
     100.0% 
    $2,208  
     12.3%
  
    SLS 
     817  
     3.9% 
     —  
     —% 
     817  
     100.0%
  
    Total operating expenses 
    $20,993  
     100.0% 
    $17,968  
     100.0% 
    $3,025  
     16.8%

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 16.8% to
approximately $21.0 million for the nine months ended September 30, 2024,
from approximately $18.0 million for the nine months ended September 30, 2023.
As a percentage of sales, operating expenses decreased to 37.7% for the nine months ended September 30, 2024,
from 33.9% for the nine months ended September 30, 2023. For the Stran segment, the increase
in the 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