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Stran & Company Inc. (SWAG) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total sales to $20.1 million from $19.7 million in the same quarter the previous year. The increase is attributed to the acquisition of the Gander Group Assets in August 2024.
Cost of sales for the quarter was $14.2 million, representing 70.5% of sales, compared to 67.5% in the same quarter of the previous year. This increase in cost ratio is due to the acquisition costs and increased product costs.
The company reported a gross profit of $5.95 million for the quarter, compared to $6.4 million in the previous year, with the decline attributed to increased costs.
Operating expenses increased to $8.1 million from $5.7 million, primarily due to expenses related to the integration of the Gander Group Assets and legal and accounting expenses related to the re-audit of historical financial statements.
Net loss for the quarter was $2.0 million, compared to a net income of $1.3 million in the previous year. The loss is attributed to increased operating expenses and decreased gross profit.
Cash provided by operating activities was $1.4 million, while cash provided by investing and used in financing activities was $1.5 million and $966,000, respectively.
Stran had a working capital of $32.3 million as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details the termination of the Revolving Line of Credit with Salem Five Cents Savings Bank and the establishment of a factoring arrangement for accounts receivable financing.
The company identified material weaknesses in its internal controls over financial reporting due to deficiencies in the design and operation of control activities.
Stran continues to focus on integrating the Gander Group Assets and enhancing its enterprise resource planning system to improve operational efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Stran & Company Inc. quarterly 10-Q report dated March 7, 2025. To report an error, please email earnings@qz.com.