Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 244

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 244
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 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 Company monitors changes to the receivables balance on a timely basis, and balances are
written off as they are determined to be uncollectible after all collection efforts have been exhausted. Estimates of potential credit
losses are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future
information that is reasonably available. 

The accounts receivable balance on
the Company’s balance sheets as of March 31, 2024 was $14,209, net of $425 of allowances. The following table
provides a roll-forward of the allowance for credit losses for the three months ended March 31, 2024 and 2023 that is deducted from the
cost basis of accounts receivable to present the net amount expected to be collected:

    March 31,
    2024  
    March 31,
    2023 

    (Restated) 
  
    Balance of allowance for credit losses, beginning of period 
    $(317) 
    $(264)
  
    Current period change for write-offs 
     107  
     78 
  
    Current period change for expected credit losses 
     (215) 
     (19)
  
    Balance of allowance for credit losses, end of period 
    $(425) 
    $(205)

24

Q.RELATED PARTY TRANSACTIONS:

Amount due from related party

  Name of Related Party  Relationship  Nature  March 31, 2024   December 31,  2023   Innovative Genetics, Inc.  Alejandro Tani, member of board of directors, the chairman of the Company’s Nominating and Corporate Governance Committee, and a member of the Compensation Committee and the Company’s Audit Committee, is the Chief Executive Officer, Chief Information Officer, and majority owner of Innovative Genetics.  Limited, non-exclusive, revocable license to use Innovative Genetics’s logos, trade names and trademarks on apparel and promotional products as branded products for sale to Innovative Genetics and Innovative Genetics-authorized persons.  $878   $853  

Amounts
due and paid to related party

Transactions with Engage &