Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 221

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 221
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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.

7.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 March 31, 2024 and December 31,
2023, the Company maintained deposits in three banks that exceeded the federal insured deposit limit of the Federal Deposit Insurance
Corporation (FDIC).

For the three months ended March
31, 2024, the Company had one major customer to which sales accounted for approximately 20.0% of the Company’s revenues. The
Company had accounts receivable from this customer amounting to 10.6% of the total accounts receivable balance.

For the three months ended March 31,
2023, the Company had one major customer to which sales accounted for approximately 11.9% of the Company’s revenues. The Company
had accounts receivable from this customer amounting to 17.3% of the total accounts receivable balance.

8.Revenue Recognition - The Company accounts for revenue under
ASC 606, Revenue for Contracts with Customers (“ASC 606”). Revenue is generated through various types of transactions, including
promotional product sales, administering a customer’s rewards program, facilitating redemption code programs, and additional contract
add-ons to enhance customer experience. The Company follows the five step model of revenue recognition:

i.identify the contract(s) with a customer;

ii.identify the performance obligations in the contract;

iii.determine the transaction price;

iv.allocate the transaction price to the performance obligations
within the contract; and

v.recognize revenue when (or as) the entity satisfies a performance
obligation.

The Company’s contract assessment
and approval varies based on whether the customer requests a one-time sale or a long-term contract. Customers with long-term contracts
require signed Master Sales Agreements, while one-time sales contracts may be approved via email, electronic signature, or verbally.
Once the contract is identified and approved, the Company assesses the goods or services promised within the contract to determine whether
each promised good or service is a performance obligation. The Company identifies each piece of promotional product as an individual
performance obligation based on