Financial Data and Key Metrics Changes - The company reported revenues of approximately $82.7 million for the year ended December 31, 2024, representing an 8.8% year-over-year increase from approximately $76 million for the year ended December 31, 2023 [9][30] - Gross profit increased by 3.9% to approximately $25.8 million, achieving a gross margin of 31.2%, down from 32.7% in the previous year [10][34] - The net loss for the year was approximately $4.1 million, compared to a net loss of approximately $0.4 million for the year ended December 31, 2023 [37] Business Line Data and Key Metrics Changes - Sales from the Strand segment decreased to approximately $72.7 million for the year ended December 31, 2024, from approximately $76 million in the previous year, primarily due to lower spending from clients [30] - Sales from the Strand Loyalty Solutions (SLS) segment increased to approximately $9.9 million, up from zero in the previous year, driven by the acquisition of Gander Group assets [30][31] - Gross profit for the SLS segment was approximately $2.1 million, reflecting the contribution from the Gander acquisition [33] Market Data and Key Metrics Changes - The company secured multiple six-figure multi-year contracts across various sectors, including residential real estate, diagnostics, public transportation, and premium consumer products, indicating a diversified client base [12][16] - The company is focusing on expanding into high-potential verticals such as hospitality, healthcare, infrastructure, and gaming [20] Company Strategy and Development Direction - The company aims to accelerate growth across both STRON and SLS segments by executing a robust enterprise sales pipeline and broadening its customer base [20][22] - The strategic roadmap includes leveraging technology, particularly the NetSuite ERP system, to enhance operational efficiency and improve fulfillment performance [22][17] - The company plans to optimize operating expenses with a focus on sustainable margin-accretive growth [22] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the complex macroeconomic environment, including inflationary pressures and global trade disruptions, but expressed confidence in the company's ability to navigate these challenges [23][24] - The company maintains a strong cash position, zero long-term debt, and a scalable operating model, which provides resilience [24][40] - Management views 2025 as a pivotal year for the company, transitioning from foundational investments to strategic acceleration [28][41] Other Important Information - The company completed a comprehensive re-audit of its historical financials due to the previous audit firm's barring by the SEC, which has strengthened its financial reporting infrastructure [6][8] - The company has approximately $18.2 million in cash and cash equivalents as of December 31, 2024, with plans to resume its $10 million share repurchase program in 2025 [37][27] Q&A Session Summary Question: Can you provide some light on your goals for profitability this year coming forward? - Management highlighted that audit fees will decrease significantly as they move away from the re-audit process, allowing more focus on operational business and profitability growth [46][48] - Goals include continuing revenue growth while driving operational efficiencies and finalizing the implementation of NetSuite to create efficiencies and reduce manual work [51][52]

Financial Performance - Total sales increased by 8.8% to approximately $82.7 million for the year ended December 31, 2024, compared to approximately $76.0 million for the year ended December 31, 2023[260]. - Gross profit margin decreased to 31.2% in 2024 from 32.7% in 2023, with total cost of sales increasing by 11.1% to approximately $56.8 million[258][261]. - Total gross profit increased by 3.9% to approximately $25.8 million for the year ended December 31, 2024, compared to approximately $24.9 million for the year ended December 31, 2023[262]. - Net loss for the year ended December 31, 2024, was approximately $4.1 million, compared to approximately $0.4 million for the year ended December 31, 2023[269]. - Total operating expenses increased by 17.6% to approximately $30.7 million for the year ended December 31, 2024, from approximately $26.1 million for the year ended December 31, 2023[264]. Revenue Sources - Program clients accounted for 83.3% of total revenue in 2024, up from 81.4% in 2023, with fewer than 350 of over 2,000 active customers classified as program clients[249]. - The Stran segment's sales decreased by 4.3% to approximately $72.7 million in 2024, while the SLS segment (acquired Gander Group) generated approximately $9.9 million in sales[260]. - The acquisition of T R Miller in June 2023 and Gander Group Assets in August 2024 contributed to revenue growth[250]. Assets and Equity - The company had approximately $55.1 million in total assets and $31.6 million in total stockholders' equity as of December 31, 2024[250]. - Cash and cash equivalents as of December 31, 2024, were approximately $9.4 million, with investments of approximately $8.9 million[270]. - The Company had net deposits from reward card programs totaling approximately $6.0 million as of December 31, 2024, compared to $0.9 million as of December 31, 2023[297]. Operating Expenses and Liabilities - Operating expenses increased to 37.2% of revenues in 2024, up from 34.4% in 2023, leading to a loss from operations of $4.9 million[258]. - The Company had future non-cancelable minimum lease payments totaling $800,000, with $361,000 due in 2025[296]. - The Company was required to maintain a "Minimum Liquidity" of $7.5 million at all times, defined as cash and short-term investments, less rewards program liabilities[290]. Tax and Cash Flow - The income tax provision for the year ended December 31, 2024, was approximately $5 thousand, compared to approximately $41 thousand for the year ended December 31, 2023[267]. - The company anticipates that its effective tax rate will remain similar to the rate recorded in 2024[268]. - Net cash provided by operating activities was approximately $2.8 million for the year ended December 31, 2024, compared to net cash used in operating activities of approximately $2.6 million for the year ended December 31, 2023[274]. - Net cash used in investing activities decreased to approximately $0.5 million for the year ended December 31, 2024, from approximately $3.7 million for the year ended December 31, 2023[275]. Future Outlook and Strategic Plans - The company plans to continue leveraging technology and expanding its product offerings to enhance customer retention and acquisition[256]. - The company may require additional cash resources in the future due to changing business conditions or strategic investments[272]. - The Company was required to maintain a minimum net worth of $2,000,000 at December 31, 2021, $2,750,000 at December 31, 2022, and $3,500,000 at December 31, 2023[284]. - The Company could not incur additional indebtedness or make capital expenditures except in the ordinary course of business following the Loan Modification Agreement[285]. Lease and Credit Agreements - A seven-year lease agreement for new office space was signed on January 10, 2025, with an initial base rent of approximately $21,000 per month[251]. - As of December 31, 2024, the Revolving Line of Credit had been terminated, and no funds were drawn from it as of December 31, 2023[289]. Goodwill and Impairment - The Company performed an annual impairment review of goodwill during the fourth fiscal quarter of each year, which requires significant judgment[302].

Financial Performance - Sales increased 8.8% to approximately $82.7 million for the fiscal year ended December 31, 2024, compared to approximately $76.0 million for 2023[7]. - Net loss for the year ended December 31, 2024, was approximately $4.1 million, compared to a net loss of approximately $0.4 million for 2023[10]. - Basic and diluted net loss per common share was $(0.22) in 2024, compared to $(0.02) in 2023[21]. - Loss from operations widened to $(4,894) million in 2024, compared to $(1,268) million in 2023[21]. - Other income decreased to $759 million in 2024, down from $924 million in 2023, a decline of 17.9%[21]. Gross Profit and Margins - Gross profit for 2024 was approximately $25.8 million, representing a gross margin of 31.2%, down from 32.7% in 2023[8]. - Gross profit for the Stran segment decreased to approximately $23.7 million in 2024 from approximately $24.9 million in 2023, while the SLS segment saw an increase to approximately $2.1 million[8]. - Gross profit rose to $25,813 million in 2024, compared to $24,852 million in 2023, reflecting a growth of 3.9%[21]. Operating Expenses - Operating expenses rose 17.6% to approximately $30.7 million for 2024, leading to an increase in the operating expense ratio to 37.2% from 34.4% in 2023[9]. - Total operating expenses increased to $30,707 million in 2024, up from $26,120 million in 2023, marking a rise of 17.5%[21]. Assets and Cash Position - Cash, cash equivalents, and investments totaled $18.2 million as of December 31, 2024[6]. - Total assets increased to $55.148 million as of December 31, 2024, compared to $49.036 million in 2023[19]. Future Outlook - Stran expects to surpass $100 million in annual sales in 2025, driven by organic growth and expansion into high-value verticals[5]. - The company secured multiple new multi-year, six-figure contracts across various industries, indicating growing demand for its services[3]. Acquisitions and Contributions - The acquisition of Gander Group assets contributed approximately $9.9 million in sales within a few months, significantly expanding Stran's presence in the hospitality and entertainment sectors[2]. Cost of Sales - Total cost of sales increased to $56,841 million in 2024, up from $51,148 million in 2023, an increase of 11.5%[21]. Share Information - Weighted-average common shares outstanding increased to 18,587,607 in 2024 from 18,519,892 in 2023[21]. Goodwill Impairment - The company recorded a goodwill impairment of $810 million in 2023, which was not present in 2024[21].

- 2023/2022 Financial Statements Re-audit Completed; Refocusing on Growth and Operational Initiatives - - Sales Increased 8.8% to $82.7 Million - - Conference Call Scheduled for Tuesday, April 15 at 11:00 A.M. ET - QUINCY, Mass., April 14, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ:SWAG) (NASDAQ:SWAGW), a leading provider of outsourced marketing solutions specializing in promotional products and loyalty incentives, today announced its financial results for the fiscal y ...

- 2023/2022 Financial Statements Re-audit Completed; Refocusing on Growth and Operational Initiatives - - Sales Increased 8.8% to $82.7 Million - - Conference Call Scheduled for Tuesday, April 15 at 11:00 A.M. ET - QUINCY, Mass., April 14, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. (“Stran” or the “Company”) (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading provider of outsourced marketing solutions specializing in promotional products and loyalty incentives, today announced its financial results for the fiscal ...

Sales Performance - Sales increased by 31.3% to $76.0 million in 2023 from $57.9 million in 2022, driven by higher spending from existing clients and new customers[3] - Acquisitions of G.A.P. Promotions, Trend Brand Solutions, Premier NYC, and T R Miller contributed $15.1 million to 2023 sales, accounting for 19.9% of total sales[3] Profitability - Gross profit rose by 61.5% to $24.9 million in 2023, with a gross profit margin of 32.7%, up from 26.6% in 2022[4] - Net loss improved to $0.4 million in 2023 from $3.5 million in 2022, primarily due to increased sales from acquisitions and organic growth[5] Client and Market Expansion - The company expanded agreements with existing clients, each representing six-figure annual revenue potential, across industries like automotive, engineering, and oil and gas[2] - In November 2024, the company acquired Gander Group, enhancing its position in the casino continuity and loyalty sector[2] - The company expects the Gander Group acquisition to contribute to long-term growth and market leadership[2] Financial Position - Cash and cash equivalents decreased to $8.1 million in 2023 from $15.3 million in 2022[10] - Accounts receivable increased to $16.2 million in 2023 from $13.8 million in 2022, reflecting higher sales[10] Operating Expenses - Operating expenses increased to $26.1 million in 2023 from $19.0 million in 2022, driven by higher general and administrative expenses[13]

- Granted Listing Extension from Nasdaq Hearing Panel - QUINCY, Mass., March 07, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ:SWAG) (NASDAQ:SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today provided a business update and reported financial results for the three and nine months ended September 30, 2024. On March 3, 2025, the Nasdaq Hearings Panel informed the Company that it determined ...

- Granted Listing Extension from Nasdaq Hearing Panel - QUINCY, Mass., March 07, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today provided a business update and reported financial results for the three and nine months ended September 30, 2024. On March 3, 2025, the Nasdaq Hearings Panel informed the Company that it determine ...

Financial Performance - For the three months ended September 30, 2024, total sales increased by 2.4% to $20.144 million compared to $19.674 million for the same period in 2023[162]. - The company reported a 4.9% increase in sales for the nine months ended September 30, 2024, compared to the same period in 2023[162]. - Total sales increased by 2.4% to approximately $20.1 million for the three months ended September 30, 2024, compared to approximately $19.7 million for the same period in 2023[173]. - Total sales for the nine months ended September 30, 2024, increased by 4.9% to approximately $55.7 million, compared to approximately $53.1 million for the same period in 2023[183]. Revenue Composition - Program clients accounted for 83.2% of total revenue for the three months ended September 30, 2024, up from 80.5% in the same period of 2023[161]. - The company acquired assets from T R Miller Co., Inc. in June 2023 and from Bangarang Enterprises, LLC in August 2024, contributing to revenue growth[162]. Profitability - Gross profit for the three months ended September 30, 2024, was $5.952 million, representing a gross margin of 29.5%, down from 32.5% in the prior year[170]. - Gross profit decreased by 7.0% to approximately $6.0 million, or 29.5% of sales, for the three months ended September 30, 2024, compared to approximately $6.4 million, or 32.5% of sales, for the same period in 2023[175]. - Gross profit for the nine months ended September 30, 2024, was approximately $17.0 million, or 30.6% of sales, compared to approximately $17.1 million, or 32.1% of sales, for the same period in 2023[183]. - The Stran segment's gross profit margin decreased to 31.4% for the nine months ended September 30, 2024, from 32.1% in 2023, primarily due to increases in product costs from vendors[186]. Expenses - Operating expenses increased to $8.136 million for the three months ended September 30, 2024, compared to $5.732 million in the same period of 2023, reflecting a rise in general and administrative expenses[170]. - Operating expenses increased by 41.9% to approximately $8.1 million for the three months ended September 30, 2024, from approximately $5.7 million for the same period in 2023[176]. - The increase in operating expenses for the nine months ended September 30, 2024, was primarily due to higher general and administrative expenses, totaling approximately $21.0 million[183]. - Operating expenses increased by 16.8% to approximately $21.0 million for the nine months ended September 30, 2024, from approximately $18.0 million in 2023, with operating expenses as a percentage of sales decreasing to 37.7% from 33.9%[187]. Net Income/Loss - The net loss for the three months ended September 30, 2024, was $2.038 million, compared to a net income of $1.265 million for the same period in 2023[170]. - Net loss for the three months ended September 30, 2024, was approximately $2.0 million, compared to a net profit of approximately $1.3 million for the same period in 2023[181]. - Net loss for the nine months ended September 30, 2024, was approximately $3.6 million, compared to a net loss of approximately $0.1 million for the same period in 2023[193]. Assets and Liquidity - As of September 30, 2024, total assets were approximately $48.8 million, with total stockholders' equity of approximately $32.3 million[163]. - Cash and cash equivalents as of September 30, 2024, were approximately $10.0 million, with investments totaling approximately $6.9 million[194]. - The Company is required to maintain a minimum liquidity of $7.5 million at all times, defined as cash and short-term investments, less rewards program liabilities[213]. - The Company had not drawn any funds from the Revolving Line of Credit as of September 30, 2024, and December 31, 2023[226]. Taxation - The company anticipates that its effective tax rate will remain similar to the rate recorded in 2023 due to management's expectations of future earnings[180]. - The company anticipates that its effective tax rate will remain similar to the rate recorded in 2023, with an income tax provision of approximately $2 thousand for the nine months ended September 30, 2024[192]. Lease and Future Commitments - A new seven-year lease agreement for office space in North Quincy, Massachusetts, was signed, starting June 1, 2025, with an initial base rent of approximately $21 thousand per month[165]. - Future minimum lease payments total approximately $998,000, with $198,000 due in the remainder of 2024[224]. Acquisitions and Investments - The Company entered into a Secured Party Sale Agreement to acquire substantially all assets of Gander Group for approximately $1.1 million in cash and the assumption of liabilities totaling approximately $5.5 million[220]. - The Gander Group Transaction resulted in the acquisition of all equity of Gander Group Louisiana, LLC, which became a wholly-owned subsidiary of the Company[221]. Financial Covenants - The Company was required to maintain a minimum net worth of $2,000,000 by December 31, 2021, $2,750,000 by December 31, 2022, and $3,500,000 by December 31, 2023[212]. - The Company must maintain a minimum interest coverage ratio of 1.25:1 for the fiscal year ending December 31, 2024[213]. - The Company is prohibited from incurring additional indebtedness except in the ordinary course of business[214]. Impairment and Fair Value - The Company performed an annual impairment review of goodwill and indefinite-lived intangible assets during the fourth fiscal quarter of each year[229]. - The company assesses impairment of long-lived assets based on significant underperformance, changes in asset usage, and negative industry trends[232]. - Contingent earn-out liabilities are measured at fair value using the Black-Scholes-Merton Call Option Formula, with significant inputs including operating income projections and volatility[233]. - The fair value of earn-out liabilities can significantly impact reported financial results based on changes in assumptions and estimates[233].

Core Insights - Stran & Company, Inc. reported a 17.9% increase in revenue to approximately $18.8 million for Q1 2024 compared to Q1 2023, and a 6.4% increase in revenue to approximately $35.5 million for the six months ended June 30, 2024, compared to the same period in 2023, indicating successful execution of its growth strategy [2][9] - The company maintained a strong cash position with approximately $21.5 million in cash, equivalents, and investments as of June 30, 2024, reflecting financial stability [2] - Stran acquired strategic assets from Gander Group to enhance its technology and product offerings, supporting its long-term growth strategy [2] Financial Results First Quarter 2024 - Sales increased by 17.9% to approximately $18.8 million for the three months ended March 31, 2024, from approximately $16.0 million for the same period in 2023, driven by higher spending from existing clients and new customers [3] - Gross profit rose by 3.8% to approximately $5.6 million, representing 29.8% of sales, although the gross profit margin decreased from 33.9% in Q1 2023 due to increased product costs [4] - The net loss for Q1 2024 was approximately $0.5 million, consistent with the loss reported in Q1 2023, attributed to increased operating expenses and cost of sales [5] Second Quarter 2024 - Sales decreased by 4.1% to approximately $16.7 million for the three months ended June 30, 2024, compared to approximately $17.3 million for the same period in 2023, primarily due to lower spending from clients [6] - Gross profit increased by 4.2% to approximately $5.5 million, with a gross profit margin of 32.8%, an improvement from 30.1% in Q2 2023, attributed to better purchasing from suppliers [7][8] - The net loss for Q2 2024 was approximately $1.0 million, slightly higher than the loss of approximately $0.9 million in Q2 2023, mainly due to increased operating expenses [8] Six Months Ended June 30, 2024 - Total sales increased by 6.4% to approximately $35.5 million for the six months ended June 30, 2024, compared to approximately $33.4 million for the same period in 2023, driven by higher spending from existing clients and new customers [9] - Gross profit increased by 4.0% to approximately $11.1 million, with a gross profit margin of 31.2%, down from 31.9% in the prior year, due to rising product costs [10] - The net loss for the six months ended June 30, 2024, was approximately $1.5 million, compared to approximately $1.4 million for the same period in 2023, reflecting increased costs of sales and operating expenses [11] Company Overview - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs that enhance brand awareness and drive sales [12] - The company serves many Fortune 500 clients across various industries, providing promotional marketing, loyalty and incentive programs, and utilizing advanced technology for order processing and fulfillment [12]