Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 265

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 265
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    $(665) 
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    $(665)

The segment SLS was not a part of the
Company until the segment was acquired and all of its business operations were incorporated within the Company’s newly created subsidiary
in August 2024. The Stran segment’s operations have remained consistent for all periods presented, however, the Company only had
one operating and reportable segment prior to the acquisition. Significant segment expenses for the Stran segment during the three months
ended March 31, 2024 are consistent with those presented on the consolidated statements of operations.

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 from
all sources on the Company’s balance sheets as of March 31, 2025 was $18,698, net of $1,110 (inclusive of $427 for related
party receivables) of allowances. The following table provides a roll-forward of the allowance for credit losses for the three months
ended March 31, 2025 and 2024 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected
to be collected:

    March 31,  2025  
    March 31,