Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 101

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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 and liabilities reflects management’s estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the
use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities
based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    Level 3:
    Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The carrying value of certain financial
instruments, including cash and cash equivalents, accounts receivable, and accounts payable are carried at historical cost basis, which
approximates their fair values because of the short-term nature of these instruments.

8.Concentration of Credit Risk - Financial instruments that potentially subject the Company to concentrations
of credit risk consist primarily of accounts receivable and deposits in excess of federally insured limits. These risks are managed by
performing ongoing credit evaluations of customers’ financial condition and by maintaining all deposits in high quality financial
institutions.

As of September 30, 2024 and December
31, 2023, the Company maintained deposits in four banks that exceeded the federal insured deposit limit of the Federal Deposit Insurance
Corporation (FDIC).

For the three and nine months
ended September 30, 2024, the Company had one major customer to which sales accounted for approximately 10.7% and 10.3% of the
Company’s revenues, respectively. The Company had accounts receivable from this customer amounting to 0.8% of the total
accounts receivable balance. For the three and nine months ended September 30, 2023, the Company had one major customer to