Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 31

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 anti-dilutive.

    March 31,
    2024  
    March 31,
    2023 

    (Restated) 
  
    Warrants 
     10,074,195  
     10,074,195 
  
    Stock options 
     864,167  
     530,730 

     10,938,362  
     10,604,925 

For the three months ended March 31,
2024 and 2023, as a result of the net losses in these periods, all warrants and stock options have been excluded from the calculation
of diluted earnings per share and, therefore, there was no difference in the weighted average number of common shares for basic and diluted
loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive.

P.CREDIT LOSSES:

The Company is exposed to credit losses
primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is
developed using historical collection experience, current and future economic and market conditions and a review of the current status
of customers’ trade accounts receivable. Customers are pooled based on sharing specific risk factors. Due to the short-term nature of
such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. 

Customers are assessed for credit
worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements
when a credit rating is not available. The Company evaluates contract terms and conditions, country and political risk, and may
require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers
that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are
written off as they are determined to be uncollectible after all collection efforts have been exhausted. Estimates of potential credit
losses are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future
information that is reasonably available. 

The accounts receivable balance on
the Company’s balance sheets as of March 31, 2024 was $14,209, net of $425 of allowances. The following table
provides a roll-forward of the allowance for credit losses for the three months ended March 31, 2024 and 202