Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 264

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 264
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 consolidated financial statements for the Company.

21

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

For each of the two segments, the CODM
uses segment gross margin and segment operating profits or losses in the annual budgeting and forecasting process. The CODM considers
budget-to-actual variances on a monthly basis for revenue as well as profit measures when making decisions about allocating capital and
personnel to the segments. The CODM uses segment gross margin and segment operating income in determining the compensation of certain
employees, primarily for its recently acquired Gander business, which is consolidated as part of the SLS subsidiary and also comprises
the segment SLS.

As of March 31, 2025 Stran and
SLS had total assets of $39,128 and $13,032, respectively. As of December 31, 2024, Stran and SLS had total assets of $45,206 and $9,944,
respectively. The entire goodwill balance of $2,321 as of March 31, 2025 and December 31, 2024, was allocated to the SLS segment.

Revenue and costs are directly attributed
to our segments, and the revenues recognized as well as the costs incurred in generating those revenues within each segment are distinguishable
based on the information systems in which each segment’s financial information gets recorded. There are no intersegment revenues
or other transactions between the two segments that are eliminated in consolidation by the Company for external reporting.

The table below presents information
about reported segments for the three months ended March 31, 2025 and 2024.

    March 31, 2025  
    March 31, 2024 

    Stran  
    SLS  
    Total  
    Stran  
    SLS  
    Total 
  
    Sales 
    $20,935  
    $7,759  
    $28,694  
    $18,827  
    $ —  
    $18,827 
  
    Gross profit 
     6,791  
     1,691  
     8,482  
     5,614  
     —  
     5,614 
  
    Operating loss 
    $(73) 
    $(462) 
    $(535)