Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 11

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
 is critical to the timing of revenue recognition.

10.Accounts Receivable and Allowance for Credit Losses - Accounts receivable
as of March 31, 2025 and December 31, 2024, includes allowance for credit losses of $1,110 and $791 (inclusive of $427 and $327 for related
party receivables), respectively.

    March 31, 
2025  
    December 31, 
2024 
  
    Trade accounts receivable 
    $18,979  
    $18,556 
  
    Less: allowance for credit losses on accounts receivable 
     (683) 
     (464)
  
    Total accounts receivable, net 
    $18,296  
    $18,092 
  
    Accounts receivable - related party 
     829  
     900 
  
    Less: allowance for credit losses on accounts receivable - related party 
     (427) 
     (327)
  
    Total accounts receivable - related party, net 
     402  
     573 
  
    Total accounts receivable from all sources 
    $18,698  
    $18,665 

The Company evaluates our accounts receivable
through a continuous process of assessing our portfolio on an individual customer and overall basis. This process consists of a thorough
review of historical collection experience, current aging status of the customer accounts and the financial condition of our customers.
The Company also considers the economic environment of our customers, both from a marketplace and geographic perspective, in evaluating
the need for an allowance. Based on our review of these factors, we establish or adjust allowances for specific customers. Credit losses
can vary substantially over time and the process involves judgment and estimation that require a number of assumptions about matters that
are uncertain. Accordingly, our results of operations can be affected by adjustments to the allowance due to actual write-offs that differ
from estimated amounts. See Note P, “Credit Losses,” to our financial statements included in this report for more information.

11.Goodwill - Goodwill represents the excess purchase price of the acquired businesses over the fair value
of identifiable net assets acquired. Goodwill is not amortized; rather, it is subject to a periodic assessment for impairment. The Company
reviews goodwill for possible impairment annually on October 1 every year or whenever events or circumstances indicate that the carrying
amount may not be recoverable.

10

STRAN & COMPANY, INC.

NOTES TO