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 ...

Stran & Company, Inc. (STRN) Q3 2022 Earnings Conference Call November 14, 2022 10:00 AM ET Company Participants Aly Schilt - IR, Crescendo Communications Andy Shape - Co-Founder, President & CEO David Browner - Interim Chief Financial Officer Conference Call Participants Edward Reilly - EF Hutton Operator Good day, ladies and gentlemen, and welcome to the Stran & Company Third Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only-mode. [Operator Instructions] It is no ...

Stran & Company, Inc. (STRN) Q2 2022 Earnings Conference Call August 15, 2022 10:00 AM ET Company Participants Andy Shape - Co-Founder, President & CEO David Browner - Interim Chief Financial Officer Conference Call Participants Edward Reilly - EF Hutton Operator Good morning, ladies and gentlemen. And welcome to the Stran & Company Second Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode. And the floor will be opened for questions and comments after the prese ...

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: June 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 04-3297200 ...

Stran & Company, Inc. (STRN) Q1 2022 Earnings Conference Call May 13, 2022 10:00 AM ET Company Participants David Waldman - IR Andy Shape - CEO Chris Rollins - CFO Conference Call Participants Edward Reilly - EF Hutton Operator Good morning, ladies and gentlemen. Thank you for standing by. And welcome to the Stran & Company First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After management’s prepared remarks, there will be a question-and-answer session. I would now ...