Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 209

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1A
Chunk 209
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astic, glass, fabric and metal for our promotional products. Further, our suppliers generally source or manufacture finished goods in
parts of the world that may be affected by economic uncertainty, political unrest, labor disputes, health emergencies, or the imposition
of duties, tariffs or other import regulations by the United States.

Increases in the price of merchandise and
raw materials used to manufacture our products could materially increase our costs and decrease our profitability.

The principal components in our promotional products
are plastic, glass, fabric and metal. The prices we pay for these fabrics and components and our merchandise are dependent on the market
price for the raw materials used to produce them, primarily cotton and chemical components of synthetic fabrics including raw materials
such as chemicals and dyestuffs. These finished goods and raw materials are subject to price volatility caused by weather, supply conditions,
government regulations, economic and political climate, currency exchange rates, labor costs, and other unpredictable factors. Fluctuations
in petroleum prices also may influence the prices of related items such as chemicals, dyestuffs and polyester yarn.

During the years ended December 31, 2024 and 2023,
many promotional products companies saw increases in the cost of finished goods and raw materials purchased, as well as in the average
cost of finished goods and raw materials purchased, as compared to the prior year, driven by rising inflation rates and shipping costs.

Our shipping costs for importing raw materials
from overseas increased significantly after the emergence of COVID-19 and the general inflation in the prices of goods and services that
has occurred since that time. Any increase in raw material prices or shipping costs increases our cost of sales and can decrease our profitability
unless we are able to pass the costs on to our customers in the form of higher prices. In addition, if one or more of our competitors
is able to reduce their production costs by taking advantage of any reductions in raw material prices or favorable sourcing agreements,
we may face pricing pressures from those competitors and may be forced to reduce our prices or face a decline in revenues, either of which
could have a material adverse effect on our business, results of operations and financial condition.

Furthermore, significant or sustained inflation
could have an adverse impact on our operating and general and administrative expenses. During inflationary periods, these costs could
increase at a rate higher than our ability to offset them via customer-facing pricing adjustments, alternative supply sources or other
measures. Inflation could also have an adverse effect on consumer spending, which could adversely impact demand for our products and