Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 53

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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, 2024 from 68.1% for the six months ended
June 30, 2023. The increase in the dollar amount of cost of sales was primarily due to an
increase in sales of 6.4% from period to period.

Gross
Profit

Gross profit
consists of sales less total costs of sales. Our gross profit increased 4.0% to approximately
$11.1 million, or 31.2% of sales, for
the six months ended June 30, 2024, from approximately $10.7 million,
or 31.9% of sales, for the six months ended June 30, 2023.
The increase in the dollar amount of gross profit was due to an increase in sales of approximately $2.1 million
for the reasons described above, partially offset by an increase in cost of sales of approximately $1.7 million
in aggregate for the reasons described above. The decrease in gross profit margin to 31.2% for the six months ended June 30,
2024 compared to 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