Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 52

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 52
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. Cash and Cash EquivalentsAll highly liquid debt instruments purchased with an original maturity of three months or less are considered to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in its deposit accounts. Accounts Receivable, Net.Accounts receivable are presented in the balance sheets at their outstanding balances net of the allowance for credit losses. These receivables are generally trade receivables due in one year or less or expected to be billed and collected within one year. The Company estimates credit losses on accounts receivable in accordance with ASC 326 Financial Instruments - Credit Losses. The Company measures the allowance for credit losses on trade receivables on a collective (pool) basis when similar risk characteristics exist. The estimate for allowance for credit losses is based on an expected loss rate for each pool. Management considers qualitative factors such as change in economic factors, regulatory matters, and industry trends to determine if an allowance should be further adjusted. The provision for credit losses is included in selling, general and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

<div align='center'>F-9</div>

The following table summarizes changes in the provision for credit losses:

| ​                               
 Balance as of December 31, 2023 | ​ 
 ​ | ​ |       ​ 
       — |
|:--------------------------------|:--|:--|--------:|
| Provision for credit loss       | ​ | ​ | 108,000 |
| Acquired credit loss provision  | ​ | ​ |  29,000 |
| Balance as of December 31, 2024 | ​ | $ | 137,000 |
| Provision for credit loss       | ​ | ​ |  24,000 |
| Write-offs                      | ​ | ​ | -39,000 |
| Balance as of June 30, 2025     | ​ | $ | 122,000 |

Prepaid expenses.The Company records a prepaid expense when it has paid for a good or service that it has not yet incurred. As of June 30, 2025, the Company had paid $ for bulbs to be received in fiscal year 2026.

Property and Equipment, Net.Property and equipment, net are stated at historical cost, less accumulated depreciation and amortization. Bushes refer to peony plants, which accumulate planting and development costs that are capitalized into their basis until they become commercially productive, at which point the asset begins depreci