Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 36

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 36
---
,080  
     —  
     11,080 
  
    Operating income (loss) 
     93  
     (233) 
     (140) 
     (1,777) 
     —  
     (1,777)

The segment SLS was not a part of
the Company until the segment was acquired and all of its business operations were incorporated within the Company’s newly created
subsidiary in August 2024. The Stran segment’s operations have remained consistent for all periods presented, however, the Company
only had one operating and reportable segment prior to the acquisition. Significant segment expenses for the Stran segment during the
three and six months ended June 30, 2024 are consistent with those presented on the unaudited condensed consolidated statements of operations.

24

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

P.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 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 from
all sources on the Company’s consolidated balance sheets as of June 30, 2025 was $22