Financial Performance - Annual revenues grew from approximately $240,000 in 1995 to approximately $75.9 million in 2023, reflecting a compound annual growth rate of approximately 22.8%[30] - Sales increased by 28.7% year-over-year in 2023 compared to 2022, driven by higher spending from existing clients and new customer acquisitions[32] - The promotional products market reached a record high of $26.1 billion in 2023, part of a total addressable market potentially up to $406 billion[35] - The company processed more than 50,000 customer orders per year, maintaining consistent gross margins of approximately 30% from 2018 to 2023[30] - The largest customer accounted for 13.2% of overall revenue in 2023, while the top 10 customers contributed 44.0% of revenue[44] - Program clients accounted for 77.2% of total revenue in 2023, down from 82.2% in 2022, indicating a focus on converting more transactional customers into program clients for greater revenue potential[49] Acquisitions and Growth Strategy - The company has made five acquisitions over the past three and a half years, including T R Miller Co., Inc. with sales of approximately $20.4 million for its fiscal year ended June 30, 2022[44] - The company plans to acquire businesses in the branded merchandise space with revenues between $5-10 million and smaller promotional companies with revenues of $2-5 million, targeting those with at least 30% gross margins[46] - Recent acquisitions include a 25,000-square-foot warehouse in Massachusetts and a 5,000-square-foot warehouse in Texas, enhancing in-house fulfillment capabilities[84] Operational Efficiency - The company plans to implement an internal commercial ERP system, Oracle/NetSuite's NetSuite ERP, in the second half of 2024 to enhance data organization[43] - The company is investing in an internal commercial ERP system, NetSuite ERP, expected to be implemented in the second half of 2024, aimed at enhancing data organization and reducing inefficiencies[61] - The company has developed a deep network of collaborator factories and service providers globally, enhancing its ability to meet customer needs efficiently[44] - The company has established a twelve-year relationship with Harte Hanks for warehousing and fulfillment, providing scalable solutions including real-time inventory reporting and climate-controlled facilities[58] - The company is expanding its in-house warehouse capabilities through acquisitions, including a 25,000-square-foot facility in Massachusetts and a 5,000-square-foot facility in Texas[59] Customer Engagement and Marketing - The company aims to enhance its digital marketing efforts, including SEO and social media platforms, to strengthen its marketing outreach and customer engagement[49] - The company has developed a custom e-commerce platform using Magento Open Source, allowing clients to manage marketing programs efficiently and access real-time data[60] - The company focuses on building custom loyalty and incentive programs, utilizing gamification tools and social media integration to drive customer engagement[53] - The company services approximately 2,000 active customers, including over 30 Fortune 500 companies, across various industries such as pharmaceutical, healthcare, and technology[72] Regulatory and Compliance Risks - The company is subject to various laws and regulations related to e-commerce, including privacy and data security, which are continually evolving[95] - Compliance with the Federal Food, Drug, and Cosmetic Act and other regulations is critical for the production and sale of products in the U.S.[96] - The company is subject to various federal, state, and local laws affecting labor, consumer safety, and environmental regulations[111] - The company must comply with evolving data protection laws, including the GDPR, which could impose significant penalties for violations[105] - The company is subject to various data privacy laws, including the California Consumer Privacy Act (CCPA) and the Colorado Privacy Act, which may impose substantial penalties for violations[137] Economic and Market Conditions - The company is affected by economic and political conditions, including import duties and tariffs, which could significantly disrupt operations[94] - The company’s revenues are impacted by overall economic conditions, including employment levels and potential economic slowdowns[153] - Rising inflation rates have driven up the costs of finished goods and raw materials, impacting profitability[125] - The company faces risks related to customer order cancellations, which could negatively impact operating results[128] - Changes in U.S. trade regulations and tariffs, particularly concerning China, may materially harm the company's revenue and operational results, potentially increasing costs and limiting product imports[156] Cybersecurity and Risk Management - The Chief Information Officer is responsible for assessing, monitoring, and managing cybersecurity risks, ensuring compliance with industry standards[224] - The company conducts thorough security assessments of all third-party providers before engagement and maintains ongoing monitoring for compliance with cybersecurity standards[221] - The company employs multi-factor authentication and a suite of security tools to protect sensitive data[218] - The board of directors oversees the management of risks associated with cybersecurity threats[223] - Significant cybersecurity matters and strategic risk management decisions are escalated to the board of directors[226] Financial Position and Capital Structure - The company had total assets of $61.6 million and total stockholder equity of $39.5 million as of December 31, 2023[31] - The company has a secured line of credit for borrowings of up to $7 million, which bears interest at the prime rate plus 0.5% per annum[183] - The company has authorized a stock repurchase program to buy back up to $10 million of its common stock, with repurchases scheduled to terminate as late as June 2024[192] - The company does not expect to declare or pay dividends in the foreseeable future, as it plans to invest future earnings into business development and growth[197] - The company is classified as a "smaller reporting company," allowing it to take advantage of certain reporting exemptions that may make its securities less attractive to investors[210]

Financial Data and Key Metrics Changes - Gross profit increased 50.2% to approximately $24.9 million or 32.8% of sales for the year ended December 31, 2023, compared to approximately $16.6 million or 28.1% of sales for the year ended December 31, 2022 [1] - Net income for the year ended December 31, 2023, was $35,000 compared to a net loss of $778,000 for the year ended December 31, 2022 [2] - Sales increased 28.7% to approximately $75.9 million for the year ended December 31, 2023, from approximately $59 million for the year ended December 31, 2022 [57] Business Line Data and Key Metrics Changes - The company achieved a 16.6% increase in organic revenue for 2023, amounting to approximately $61.2 million compared to approximately $52.5 million for 2022 [34][58] - The acquisitions accounted for approximately $14.7 million or 19.4% of sales for 2023, compared to approximately $6.5 million or 11% of sales for 2022 [58] Market Data and Key Metrics Changes - The promotional products industry is valued at approximately $26 billion, with over 25,000 companies operating within it [12] - The company is experiencing growth within existing client relationships and has added several first-class customers, enhancing its competitive position [35] Company Strategy and Development Direction - The company is focused on nurturing organic growth and optimizing the benefits of existing acquisitions while exploring potential M&A opportunities [37] - The strategy includes expanding into new verticals and geographic regions, improving sales and marketing initiatives, and enhancing technology investments [38][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining long-term profitability due to successful execution of strategic growth initiatives [30] - The company anticipates growth in 2024, supported by a strong pipeline and positive momentum in sales efforts [13][14] Other Important Information - The company maintains a strong balance sheet with approximately $18.5 million in cash and investments as of December 31, 2023, and no long-term debt [2][53] - The company has been recognized in the industry, jumping 21 places to 24th in the Advertising Specialty Institute's 2023 Annual Listing of the Most Powerful People in the Promotional Products Industry [50][51] Q&A Session Summary Question: Can you provide background on the new hires made this year? - The company hired Ian Wall as Chief Information Officer, who has extensive experience in implementing ERPs and enhancing technology initiatives [6][7] - Nick Kiefer was hired as Senior Vice President of Sales, bringing strong leadership to the sales organization [8][9] - Michele Pytlinski was appointed as Vice President of Client Success, focusing on maintaining high customer satisfaction [9] Question: What are your thoughts on M&A going into 2024? - The company is being more selective and patient with M&A, focusing on integrating previous acquisitions while exploring new opportunities [11][12] Question: How is your pipeline and general business outlook for 2024? - The company reported a strong pipeline with significant momentum and expects growth in 2024 [13][14] Question: Is the gross margin improvement sustainable? - Management indicated that efforts to increase margins and improve purchasing practices are expected to sustain margins above 30% moving forward [15][16]

Exhibit 99.1 Stran & Company Reports 28.7% Increase in Sales and Achieves Profitability for the 2023 Fiscal Year Benefitting from Increased Operating Ef iciency and Economies of Scale, Evidenced by 156% Year-Over-Year Increase in Operating Income for the Fourth Quarter of 2023 Andy Shape, President and CEO of Stran, commented, "We made meaningful progress throughout 2023, resulting in record sales of approximately $75.9 million, a 28.7% increase over the prior year. Additionally, our gross profit increased ...

Stran & Company, Inc. (NASDAQ:SWAG) Q3 2023 Results Conference Call November 6, 2023 10:00 AM ET Company Participants Alexandra Schilt - VP, Crescendo Communications Andy Shape - CEO David Browner - CFO Conference Call Participants Operator Greetings, and welcome to the Stran & Company Third Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt, Vice President of Crescendo Communications, the fir ...

Financial Performance - Sales increased 42.2% year-over-year to approximately $19.3 million for Q3 2023, compared to $13.6 million for Q3 2022[134] - Gross profit rose 50.0% to approximately $6.4 million, representing 33.0% of sales for Q3 2023, compared to 31.3% for Q3 2022[137] - Net earnings for Q3 2023 were approximately $684,609, compared to a net loss of $688,152 for Q3 2022[130] - Recurring organic sales increased 29.5%, or approximately $3.5 million, to approximately $15.4 million for Q3 2023[135] - Sales increased by 29.3% to approximately $52.5 million for the nine months ended September 30, 2023, compared to $40.6 million for the same period in 2022, with acquisitions contributing approximately $9.4 million, or 17.9% of total sales[146] - Gross profit for the nine months ended September 30, 2023, increased by 43.8% to approximately $16.1 million, representing 30.7% of sales, compared to $11.2 million, or 27.6% of sales, for the same period in 2022[149] - The net loss for the nine months ended September 30, 2023, was approximately $0.8 million, an improvement from a net loss of approximately $1.7 million for the same period in 2022, attributed to increased sales and acquisitions[157] Expenses and Costs - Cost of sales increased 38.6% to approximately $12.9 million for Q3 2023, with cost of purchases rising to approximately $11.6 million[136] - Operating expenses increased to approximately $5.9 million for Q3 2023, up from $4.9 million in Q3 2022[130] - Operating expenses for the nine months ended September 30, 2023, rose by 39.7% to approximately $18.4 million, accounting for 35.0% of sales, up from 32.4% in the same period in 2022[150] - The total cost of sales increased by 23.8% to approximately $36.4 million for the nine months ended September 30, 2023, with cost of purchases rising to approximately $32.4 million, or 25.5%[148] Assets and Equity - Total assets as of September 30, 2023, were approximately $61.3 million, with total stockholders' equity of approximately $38.6 million[125] - As of September 30, 2023, the company had cash and cash equivalents of approximately $9.4 million and investments of approximately $10.3 million[158] Acquisitions - The acquisition of assets from G.A.P. Promotions, Trend Brand Solutions, Premier NYC, and T R Miller contributed approximately $3.9 million, or 20.4% of sales, for Q3 2023[134] - The total purchase price for the Wildman Imprints acquisition was $2,937,222, with the fair value of identifiable assets acquired including inventory of $649,433 and an intangible customer list valued at $2,253,690[181] - The G.A.P. Promotions acquisition had an aggregate purchase price of $3,245,872, with cash payments of $1,510,872 and a contingent earn-out liability of $1,635,000[188] - The Trend Brand Solutions acquisition totaled $2,193,166, with cash consideration of $1,488 and a contingent earn-out liability of $1,370,344[193] - The Premier NYC acquisition had an aggregate purchase price of $1,390,533, including cash payments of $440,025 and a contingent earn-out liability of $907,600[198] - The T R Miller acquisition involved a cash payment of $2,154,230.21, reflecting a purchase price of $1,000,000 adjusted by a $1,123,071.82 working capital adjustment[202] Financing and Credit - The company entered into a Revolving Demand Line of Credit Loan Agreement for aggregate loans of up to $7 million, secured by a first priority security interest in all assets[168] - The Line of Credit is subject to interest at the prime rate plus 0.5% per annum, with monthly interest repayments required[170] - The company must maintain a minimum net worth of $3.5 million by December 31, 2023, as part of the financial requirements under the Line of Credit[175] - The company may not incur additional indebtedness or make significant investments without the prior consent of the lender[176] Stock and Share Repurchase - The company has repurchased a total of 1,797,159 shares of common stock for total payments of $3,356,711, with $6,643,289 remaining available under the stock repurchase program[167] - The Company has established a trading plan for stock repurchases that may continue until June 2024 unless terminated earlier or extended[165] Other Financial Information - Other income rose to $242,009 for the three months ended September 30, 2023, compared to $20,471 for the same period in 2022, primarily due to adjustments related to earn-out obligations from acquisitions[140] - Other income for the nine months ended September 30, 2023, was $313,738, compared to $92,124 for the same period in 2022, largely due to adjustments related to earn-out obligations[151] - The effective tax rate is expected to remain similar to the federal tax rate of 21%, influenced by the relative proportions of revenue and income before taxes in various jurisdictions[142] - Net cash used in operating activities for the nine months ended September 30, 2023, was approximately $3.4 million, a decrease from approximately $6.5 million for the same period in 2022[161] - Net cash used in investing activities was approximately $1.8 million for the nine months ended September 30, 2023, compared to approximately $10.7 million for the same period in 2022[162] - Net cash used in financing activities was approximately $0.6 million for the nine months ended September 30, 2023, down from approximately $2.7 million for the same period in 2022[163] Accounting Policies - The Company recognizes revenue when goods or services are transferred to customers, following a five-step process as per ASC Topic 606[221] - The Company accounts for stock-based compensation under ASC Topic 718, which requires subjective assumptions that could significantly affect future expenses[223][224] - The Company evaluates its deferred tax assets based on the likelihood of recovery from future taxable income, with significant changes potentially impacting tax provisions[226][227] - The Company manages its investments, which include U.S. treasury bills and corporate bonds, recording them at fair value[217] - The Company has critical accounting policies related to investments, inventory valuation, intangible assets, revenue recognition, and stock-based compensation that could significantly impact financial statements[216]

Financial Data and Key Metrics Changes - Revenue increased by 18% to approximately $17.5 million for Q2 2023, compared to $14.8 million for Q2 2022 [20][31] - Organic revenue grew by 11% in Q2 2023, with gross profit increasing by 35% to $5.1 million, improving gross profit margin to 29.1% from 25.4% year-over-year [20][24] - Net loss for Q2 2023 was approximately $800,000, compared to a net loss of approximately $400,000 for Q2 2022 [24] Business Line Data and Key Metrics Changes - The company completed four acquisitions in the last 18 months, which have historically generated over $30 million in revenue [30][35] - The integration of TR Miller is expected to yield significant revenue, despite the current integration costs impacting short-term profitability [21][30] Market Data and Key Metrics Changes - The promotional products industry is experiencing a shift towards larger orders from customers, indicating a trend of targeted marketing initiatives rather than mass orders [13][52] - The company reported strong contract momentum and over $15 million in open bookings, supporting expectations for continued growth in Q3 and Q4 2023 [33][52] Company Strategy and Development Direction - The company is focused on building long-term value through strategic acquisitions and enhancing its market presence within the $25 billion promotional products industry [28][45] - Cost-saving initiatives have been implemented, including reducing nonessential staff and limiting advertising spend, while maintaining a solid balance sheet with $25.5 million in cash and investments [6][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of seasonality on business, with expectations for stronger performance in the second half of the year due to holiday-related orders [10][49] - Despite reporting a loss, management views current expenses as temporary investments necessary for long-term growth and profitability [30][51] Other Important Information - The company has a buyback program in place, with up to $10 million approved for buybacks, balancing cash preservation with stock repurchase [39][53] - Management emphasized the importance of integrating acquisitions to achieve cost savings and enhance profitability [45][48] Q&A Session Summary Question: How does seasonality affect your business? - Management noted that seasonality impacts business, with the first two quarters typically being slower [49] Question: Can you cite specific costs contributing to the quarter's loss? - The largest cost driver was related to acquisitions, including due diligence and integration expenses, along with investments in technology [34][35][36] Question: What are you seeing for your customers' marketing budgets? - Management expressed confidence in strong Q3 and Q4 performance due to significant bookings and holiday-related orders [52] Question: Where do you stand on buybacks? - The company has historically spent about $3 million on buybacks and has approved up to $10 million, balancing cash preservation with stock repurchase [39][53]

Financial Performance - Sales increased by 18.0% year-over-year to approximately $17.5 million for the three months ended June 30, 2023, compared to approximately $14.8 million for the same period in 2022[129]. - Gross profit increased by 35.0% to approximately $5.1 million, representing 29.1% of revenue for the three months ended June 30, 2023, compared to 25.4% for the same period in 2022[132]. - The company reported a net loss of approximately $838,330 for the three months ended June 30, 2023, compared to a net loss of approximately $447,443 for the same period in 2022[127]. - Sales increased by 22.8% to approximately $33.2 million for the six months ended June 30, 2023, from approximately $27.1 million for the same period in 2022[144]. - Gross profit increased by 40.0% to approximately $9.8 million, or 29.4% of revenue, for the six months ended June 30, 2023, compared to approximately $7.0 million, or 25.8% of revenue, for the same period in 2022[147]. - Net loss for the six months ended June 30, 2023, was approximately $1.5 million, compared to a net loss of approximately $1.0 million for the same period in 2022[154]. Revenue Composition - Program clients accounted for 81.6% of total revenue for the three months ended June 30, 2023, compared to 86.9% for the same period in 2022[120]. - Recurring organic sales increased by 11.1%, or approximately $1.4 million, to approximately $14.4 million for the three months ended June 30, 2023[130]. - Recurring organic sales increased by 13.9%, or approximately $3.4 million, to approximately $27.8 million for the six months ended June 30, 2023, compared to approximately $24.4 million for the same period in 2022[145]. Expenses - Cost of sales increased by 12.2% to approximately $12.4 million for the three months ended June 30, 2023, from approximately $11.0 million for the same period in 2022[131]. - General and administrative expenses rose to approximately $6.4 million for the three months ended June 30, 2023, compared to approximately $4.2 million for the same period in 2022[127]. - Operating expenses increased by 50.1%, or approximately $2.1 million, to approximately $6.4 million for the three months ended June 30, 2023, compared to $4.2 million for the same period in 2022[133]. - Operating expenses for the six months ended June 30, 2023, increased by 50.6%, or approximately $4.2 million, to approximately $12.4 million from approximately $8.3 million for the same period in 2022[148]. Assets and Equity - Total assets as of June 30, 2023, were approximately $63.1 million, with total stockholders' equity of approximately $38.0 million[122]. - As of June 30, 2023, the company had cash and cash equivalents of approximately $15.3 million and investments of approximately $10.3 million[156]. Cash Flow - Net cash provided by operating activities was approximately $2.3 million for the six months ended June 30, 2023, compared to a net cash used of approximately $2.2 million for the same period in 2022[159]. - Net cash used in investing activities was approximately $1.7 million for the six months ended June 30, 2023, compared to approximately $0.7 million for the same period in 2022[160]. - Net cash used in financing activities was approximately $0.6 million for the six months ended June 30, 2023, down from approximately $1.1 million for the same period in 2022[161]. Acquisitions - The company completed acquisitions contributing approximately $3.1 million, or 17.8% of sales, for the second quarter of 2023[121]. - The company acquired Wildman Imprints for a total purchase price of $2,937,222, which includes $649,433 in inventory, $34,099 in property and equipment, and $2,253,690 for the customer list[180]. - The G.A.P. Promotions acquisition had an aggregate purchase price of $3,245,872, with $91,096 in inventory, $879,486 in working capital, and $2,275,290 for the customer list[185]. - The Trend Brand Solutions acquisition totaled $2,193,166, including $63,624 in cash, $346,822 in accounts receivable, and $1,659,831 for the customer list[192]. - The Premier NYC acquisition had an aggregate purchase price of $1,390,533, with $13,855 in cash and $1,032,600 in contingent earn-out liability[197]. - The T R Miller acquisition involved a total cash payment of $2,154,230.21, with a purchase price of $1,000,000 adjusted by a $1,123,071.82 working capital adjustment[199]. Financing and Credit - The company entered into a Revolving Demand Line of Credit Loan Agreement for aggregate loans of up to $7 million, secured by a first priority security interest in all assets[165]. - The Line of Credit is subject to interest at the prime rate plus 0.5% per annum, with monthly interest repayments required[167]. - The company must maintain a minimum net worth of $3.5 million by December 31, 2023, as part of the financial requirements under the Line of Credit[172]. - The company has not drawn any funds from the Line of Credit as of June 30, 2023[177]. Future Outlook - The company expects to continue leveraging technology and expanding product offerings to enhance competitive positioning in the market[127]. - The company may require additional cash resources in the future due to changing business conditions or strategic expansions[157]. Tax and Compliance - The effective tax rate is expected to remain similar to the federal tax rate of 21%, with state income taxes fluctuating based on annual sales apportionment[152]. - The company evaluates its uncertain tax positions quarterly, which may affect its tax provision[224]. - The company has no off-balance sheet arrangements that could affect its financial condition[211]. Lease Obligations - Future minimum lease payments total $1,523,396 from 2024 to 2028, with the highest payment of $501,393 in 2024[208]. - The company anticipates no deficiencies in its ability to meet future lease payment obligations[208]. Revenue Recognition - The company recognizes revenue when goods or services are transferred to customers, following ASC Topic 606[218]. - Stock-based compensation is recorded under ASC Topic 718, with estimates based on historical data and expected volatility[220].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10−Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission File Number: 001-41038 STRAN & COMPANY, INC. (Exact name of registrant as specified in its charter) Nevada 04-329720 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 STRAN & COMPANY, INC. (Exact name of registrant as specified in its charter) | Nevada | 04-3297200 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 2 Heritage Drive, Suite 600, Quincy, MA | 02171 | | (Address of principal executive offices) | (Zip Cod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10−Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission File Number: 001-41038 STRAN & COMPANY, INC. (Exact name of registrant as specified in its charter) Nevada 04-32 ...