Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 38

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 38
---
 Program offerings include ongoing inventory,
use of technology platform, warehousing, creative services, and additional client support. Those program customers are geared towards
longer-lasting relationships that helps secure recurring revenue well into the future.

Our sales increased 17.9% for the three months
ended March 31, 2024 compared to for the three months ended March 31, 2023, which we believe was primarily due to higher spending from
existing clients as well as business from new customers. Additionally, we benefited from the acquisition of the assets of T R Miller
Co., Inc., or T R Miller, in June 2023.

As of March 31, 2024, we had approximately
$47.9 million of total assets with approximately $35.2 million of total stockholders’ equity.

Restatement of Previously Issued Consolidated
Financial Statements

This Quarterly Report on Form 10-Q includes financial
statements that restate the Company’s financial statements as of and for the three months ended March 31, 2023. This Item 2. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” includes restated financial information as of and
for the three months ended March 31, 2023. Refer to Note B to the financial statements included in this Quarterly Report on Form 10-Q
for a discussion of the restatement and the impact on the specific accounts in such financial statements.

Recent Developments

Lease Agreement

On January 10, 2025, the Company entered
into a seven-year lease agreement for new office space in North Quincy, Massachusetts. The Company’s existing lease agreement
for its office space expires May 31, 2025. The new lease term begins on June 1, 2025 and expires on May 31, 2032 with an option to
extend the lease an additional five years. The lease contains an initial base rent of approximately $21 thousand per month with 2.2%
- 2.5% annual escalations, plus a percentage of taxes and operating expenses incurred by the lessor in connection with the ownership
and management of the property.

Termination of Revolving Line of Credit

Stran Loyalty Solutions, LLC, a Nevada limited
liability company (“Stran Loyalty Solutions”), a wholly-owned subsidiary of the Company, entered into a factoring arrangement
with a third party to provide accounts receivable financing to Stran Loyalty Solutions. In connection with the factoring arrangement