Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 3

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part II, Item 8
Chunk 3
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, the Company had one major customer
to which sales accounted for more than 10% of the Company’s revenues. The Company had accounts receivable from this customer amounting
to 0.8% of the total accounts receivable balance.

9

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

9.Revenue Recognition - The Company accounts for revenue under
ASC 606, Revenue for Contracts with Customers. Revenue is generated through various types of transactions, including promotional product
sales, administering a customer’s rewards program, administering 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 the following fact pattern. Customers can benefit from each item of promotional product produced on its own. Each
piece of promotional product does not significantly modify or customize other promotional products and are not highly interdependent or
interrelated with each other. The Company can, and frequently does, break portions of contracts into separate shipments to meet customer
demands. As such, each piece of promotional product is considered a separate and distinct performance obligation.

The transaction price for the majority
of the Company’s sales can be clearly identified in a significant majority of the contracts due to an observable selling price.
The transaction price is then allocated to the performance obligation(s), i.e. promotional product. The agreements include clearly identified
prices.

The Company recognizes revenue when
or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Stran evaluates transfer