Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 93

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 93
---
.1% from period to period.

Gross
Profit

Gross profit
consists of sales less total costs of sales. Our gross profit increased 4.2% to approximately
$5.5 million, or 32.8% of sales, for
the three months ended June 30, 2024, from approximately $5.2 million,
or 30.1% of sales, for the three months ended June 30, 2023.
The increase in the dollar amount of gross profit was due to a decrease in cost of sales of approximately $0.9 million
for the reasons described above, which was offset by a decrease in sales of approximately $0.7 million
in aggregate for the reasons described above. The increase in gross profit margin to 32.8% for the three months ended June
30, 2024 compared to 30.1% for the three months ended June 30, 2023 was primarily due to improvements in purchasing from suppliers.

Operating
Expenses

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 5.3% to
approximately $6.6 million for the three months ended June 30, 2024,
from approximately $6.2 million for the three months ended June 30, 2023.
As a percentage of sales, operating expenses increased to 39.4% for the three months ended June 30, 2024,
from 35.9% for the three 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 $1 thousand
for the three months ended June 30, 2024, compared to approximately $17 for the three
months ended June 30, 2023. This change was primarily due to noncash accretion expense related
to certain installment payment liabilities. Our interest income was approximately $82 thousand
for the three months ended June 30, 2024, compared to approximately $146 thousand
for the three 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 $3 thousand for the three months ended
June 30, 2024,