Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 327

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 327
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retion 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, compared to approximately $9 thousand for the three months ended June 30,
2023. This change was primarily due to the recording of all investments at estimated fair value.

Income Tax Provision

Income tax provision reflects statutory tax rates
in the jurisdictions in which we operate adjusted for permanent book/tax differences.

Income tax provision for the three months ended
June 30, 2024 was approximately $3 thousand compared to income tax provision of approximately $0.1 million for the three months ended
June 30, 2023. Income tax provision for the three months ended June 30, 2024 and 2023 accounted for 0.2% and 12.0%, respectively, of loss
before income taxes of approximately $1.0 million and approximately $0.8 million, respectively. As of June 30, 2024 and 2023, the Company
recorded an income tax provision comprised of state income taxes and a valuation allowance against its net deferred tax assets as well
as a minimum state tax liability. The company recorded a valuation allowance since its generated a deficit over a three-year cumulative
period.

Based on management’s expectations of future
earnings and recognition of a valuation allowance, we anticipate that our effective tax rate will remain similar to the rate recorded
in 2023.

33

Net Loss

Our net loss for the three months ended June 30,
2024 was approximately $1.0 million, compared to approximately $0.9 million for the three months ended June 30, 2023. This change was
primarily due to the increase in operating expenses for the reasons described above, partially offset by the increase in gross profit.

Comparison of Six Months Ended June 30,
2024 and 2023

The following table sets forth key components of our results of operations during the six months ended June 30, 2024 and 2023 both in
dollars and as a percentage of our revenues.

    Six Months Ended June 30, 

    2024