Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 73

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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; point of sale displays; and loyalty and
incentive programs.

We earn the majority of our revenue from the
sale of unique, quality promotional products for a wide variety of industries primarily to support marketing efforts. We also derive
revenues from service fees from loyalty programs, event management, print services, fulfillment services, and technology services.

The majority of our
revenue is derived from program business, although only a small percentage of our customers are considered programmatic. For the three
months ended March 31, 2024 and 2023, program clients accounted for 86.0% and 81.7% of total revenue, respectively. Fewer than 350 of
our more than 2,000 active customers are considered to be program clients. Our active customers are any organizations, businesses,
or divisions of a parent organization which have purchased directly or indirectly from us within the last two years, and include organizations
that have bought from other organizations for which Stran acts as an established sub-contractor. We define transactional customers as
customers that place an order with us and do not have an agreement with us covering ongoing branding requirements. We define program
clients as clients that have a contractual obligation for specific ongoing branding needs. 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