[Form 8-K Current Report](index=1&type=section&id=Form%208-K) [Company Information](index=1&type=section&id=Company%20Information) This section provides Stran & Company, Inc.'s identification, registration details, and securities listed on NASDAQ - **Stran & Company, Inc.** is an emerging growth company incorporated in Nevada[2](index=2&type=chunk)[9](index=9&type=chunk) Registered Securities on NASDAQ | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, par value $0.0001 per share | SWAG | The NASDAQ Stock Market LLC | | Warrants, each warrant exercisable for one share of Common Stock at an exercise price of $4.81375 | SWAGW | The NASDAQ Stock Market LLC | [Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) Stran & Company, Inc. announced preliminary Q1 2024 financial results via a press release, furnished but not filed under Section 18 of the Exchange Act - The company issued a press release on **June 28, 2024**, announcing preliminary financial results for the quarter ended **March 31, 2024**[4](index=4&type=chunk) - The press release detailing financial results is attached as **Exhibit 99.1**[4](index=4&type=chunk) - Information under Item 2.02, including Exhibit 99.1, is furnished, not filed under Section 18 of the Exchange Act, and not incorporated by reference unless explicitly stated[11](index=11&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section provides a safe harbor statement for forward-looking information, noting inherent risks and no obligation to update - The report contains forward-looking statements regarding future performance, identified by terms like "may," "will," "believes," and "expects"[12](index=12&type=chunk) - These statements are not guarantees and are subject to substantial risks and uncertainties that could cause material differences in actual results[12](index=12&type=chunk) - The company disclaims any obligation to publicly update forward-looking statements, except as legally required[12](index=12&type=chunk) [Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section lists exhibits furnished with the Form 8-K, primarily the press release with preliminary financial results Exhibits List | Exhibit No. | Description of Exhibit | | :--- | :--- | | 99.1 | Press Release dated June 28, 2024 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

Gross margin expected to increase by over 100 basis points versus first quarter of 2023 Quincy, MA, June 28, 2024 (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 reported preliminary selected unaudited results for the first quarter of 2024. The selected unaudited results in this press release are preliminary and subject to the c ...

Core Viewpoint - Stran & Company, Inc. is projecting strong growth in the first quarter of 2024, with a year-over-year revenue increase of approximately 17% compared to the same period in 2023, despite a challenging market environment [3]. Company Overview - Stran has been a leader in the promotional products industry for over 29 years, specializing in complex marketing programs that enhance brand awareness and drive sales [2]. - The company serves many Fortune 500 clients across various industries, managing promotional marketing, loyalty, and incentive programs [2]. - Stran emphasizes building long-term relationships with clients to foster brand loyalty [2]. Financial Performance - Revenue is expected to grow by 17% year-over-year for the first quarter of 2024 [3]. - Gross margin is projected to improve by over 100 basis points compared to the first quarter of 2023 [3][7]. - Cash, cash equivalents, and investments are anticipated to increase to $20.2 million as of March 31, 2024, up from $18.5 million at the end of 2023 [3][6]. Audit and Reporting - Stran has engaged Marcum LLP as its new independent public accounting firm after dismissing its previous firm, aiming to complete quarterly reporting procedures efficiently [3].

Company Overview - Stran & Company, Inc. is a leading outsourced marketing solutions provider specializing in promotional products and loyalty incentive programs [4][5] - The company has over 29 years of experience and serves many Fortune 500 companies across various industries [5] - Stran focuses on complex marketing programs to enhance brand awareness and drive sales through promotional products [5] Recent Developments - Stran has engaged Marcum LLP as its new independent public accounting firm, which is recognized as one of the top-ranked audit and accounting firms in the U.S. [4][1] - The transition to Marcum is expected to be swift, allowing Stran to resume its scheduled financial reporting [1][4] Services Offered - Marcum provides a comprehensive range of services including tax, accounting, assurance, financial advisory, risk management, and technology consulting [2]

"We are very proud to expand these meaningful contracts with leading organizations," commented Andy Shape, CEO of Stran. "These customers selected us based on our performance, trusted relationship, and consistent reliability of products and services. Our products management technology is designed for each customer to increase brand awareness, streamline operations, and enhance efficiency. In the case of one customer, their sales had doubled over a short period and they needed quick scaling of products, whic ...

Core Insights - Stran & Company, Inc. has secured significant six-figure agreements with two major customers, indicating strong contract momentum in 2024 [1][4] - The company specializes in outsourced marketing solutions, leveraging promotional products and loyalty incentives to enhance brand awareness and customer loyalty [1][5] Customer Agreements - Stran signed an agreement with a leading manufacturer of recreational watercraft, chosen for its cost-effective solutions and robust technology infrastructure [2] - A prominent pet supply retailer with over 200 stores in the U.S. selected Stran as its promotional products manager, highlighting Stran's technology and creative capabilities as key factors in the decision [3] Company Overview - Stran has over 29 years of experience in the promotional products industry, focusing on complex marketing programs that drive brand awareness and sales [5] - The company serves many Fortune 500 clients across various industries, providing services such as promotional marketing, loyalty programs, and wellness campaigns [5] - Stran aims to build long-term relationships with clients to foster brand loyalty and enhance customer connections [5]

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 ...