Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 100

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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 time or at a point in time. The assessment of
whether control transfers over time or at a point in time is critical to the timing of revenue recognition. Payments from customers received
in advance of the performance obligation being met are recognized as liabilities until performance occurs. In general, receivables from
customer are primarily due within 30 days of the invoice date.

10

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

10.Accounts Receivable and Allowance for Credit Losses - Accounts
receivable at September 30, 2025 and December 31, 2024, includes allowance for credit losses of $1,162 and $791 (inclusive of $427 and
$327 for related party receivables), respectively. Accounts receivable at December 31, 2023 was $17,076 (inclusive of $853 for related
party receivables).

    September 30, 
2025  
    December 31, 
2024 
  
    Trade accounts receivable 
    $17,361  
    $18,556 
  
    Less: allowance for credit losses on accounts receivable 
     (735) 
     (464)
  
    Total accounts receivable, net 
    $16,626  
    $18,092 
  
    Accounts receivable - related party 
    $829  
    $900 
  
    Less: allowance for credit losses on accounts receivable - related party 
     (427) 
     (327)
  
    Total accounts receivable - related party, net 
    $402  
    $573 
  
    Total accounts receivable from all sources, net 
    $17,028  
    $18,665 

The Company evaluates our accounts receivable
through a continuous process of assessing our portfolio on an individual customer and overall basis. This process consists of a thorough
review of historical collection experience, current aging status of the customer accounts and the financial condition of our customers.
The Company also considers the economic environment of our customers, both from a marketplace and geographic perspective, in evaluating
the need for an allowance. Based on our review of these factors, we establish or adjust allowances for specific customers. Credit losses
can vary substantially over time and the process involves judgment and estimation that require a number of assumptions about matters that
are uncertain. Accordingly,