Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 655

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 655
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654 

    Less: 

    Cost of sales 
     48,970  
     7,871  
     56,841 
  
    Segment gross margin 
     23,742  
     2,071  
     25,813 

    Less(1): 

    Segment selling expenses (2) 
     4,987  
     724  
     5,711 
  
    Other segment expenses (3) 
     22,599  
     2,397  
     24,996 
  
    Segment operating loss 
     (3,844) 
     (1,050) 
     (4,894)

(1)The significant expense categories and amounts align with the segment-level information that is regularly
provided to the CODM.

(2)Selling expenses primarily include commissions, bonuses, travel expenses, and other marketing expenses
that are directly attributed to generating revenues

(3)Other segment expenses for each reportable segment includes:

●Stran – general and administrative expense, depreciation and amortization expense, and all other
operating expenses not allocated to corporate overhead

●SLS – general and administrative expense, depreciation and amortization expense, and all other operating
expenses incurred at the SLS subsidiary subsequent to the acquisition in August 2024

F-32

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

S.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