Getting there.

That’s the word from Andy Shape, CEO of Counselor Top 40 distributor Stran Promotional Solutions (asi/337725), when it comes to the firm being able to report its quarterly financial results for 2024.

Stran, which has been publicly traded since late 2021, has received three notices of deficiency from the Nasdaq Stock Market this year for failing to file public quarterly reports on its financial performance within required timeframes. The distributorship notified investors of the latest deficiency notice on Friday, Nov. 22.

Andy Shape, Stran Promotional Solutions (asi/337725)

Nasdaq has given Stran until Dec. 16 to file the 2024 quarterly financial reports for the year’s first three quarters. The distributorship has until Dec. 6 to submit to Nasdaq any update to its original plan to regain compliance with the stock market’s listing requirements.

Shape, a member of Counselor’s Power 50 list of promo’s most influential people, told ASI Media that Stran is working diligently to finalize the outstanding financials. He asserted that the firm has made substantial progress.

“We remain committed to full compliance with Nasdaq listing requirements,” Shape shared. “We are taking all necessary steps to complete the filing process and fully expect to meet the Dec. 16 deadline.”

Stran’s filing challenges are an outgrowth of its former auditor, BF Borgers, getting in trouble with the Securities and Exchange Commission (SEC).

An auditor of publicly traded companies ran afoul of the SEC for alleged fraud, and that's causing headaches for the company's unfortunate clients (who did no wrong), including a Top 40 #promoproducts firm. https://t.co/Uemm8Jf2zt

— Chris Ruvo (@ChrisR_ASI) May 15, 2024

In May, the SEC announced a $14 million settlement with now-defunct BF Borgers and its owner. The SEC said BF Borgers engaged in “deliberate and systemic failures” to comply with standards of the Public Company Accounting Oversight Board in audits and reviews incorporated in 1,500 SEC filings between January 2021 and June 2023.

The BF Borgers downfall meant that companies that had relied on the firm for audits, like Stran, needed to have new audits performed. Stran and other BF Borgers clients – at least some of which also had to delay reporting – were not accused of wrongdoing.

“The circumstances surrounding our change of auditor, the associated timeline and the steps required to remain compliant have been both challenging and time-consuming,” Shape told ASI Media. “However, we are confident that this process will ultimately strengthen Stran, providing our shareholders with greater transparency and visibility into our financials.”

Counselor Top 40 #promoproducts distributor Stran Promotional Solutions, a publicly traded company projects that half-year sales are up over 10% on an annual basis, a performance that outpaces the average industry performance. Details: https://t.co/vWDNATnd8j@stranpromosol

— Chris Ruvo (@ChrisR_ASI) August 13, 2024

While Stran has not filed formal quarterly reports, the firm has provided preliminary unaudited updates on its financial performance. In August, for instance, Stran shared that unaudited results show that it increased revenue more than 10% in the first six months of 2024 compared to the same half-year stretch in 2023.

The firm also said that that gross profit margin rose during the six-month period on an annual basis, increasing from 29.4% last year to 31.7% in the January through June months of 2024.

Stran is working with a new auditor, Marcum LLP, to get fully audited quarterly reports prepared and released to the public.

“We appreciate the industry’s interest and the patience of our stakeholders as we resolve this matter,” Shape told ASI Media. “Our focus remains on creating long-term value for Stran while maintaining the trust of our shareholders and fulfilling our reporting obligations.”

Stran's stock price reached a high of about $7 per share in December 2021, but has consistently been trading for below $2 per share for at least the last year, according to Nasdaq data. As of this Nov. 25 afternoon writing, the stock price was about $1.13.

Based on reported 2023 North American promotional product revenue of $82.1 million, Stran Promotional Solutions ranked 27^th on Counselor’s most recent list of the largest distributors in the industry.