Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 2552

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 13
Chunk 2552
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 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.

F-11

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

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
of control primarily from the customer’s perspective. Considering the transaction from the customer’s perspective reduces
the risk that revenue is recognized for activities that do not transfer control of a good or service to the customer. Management determines,
at contract inception, whether control of a good or service transfers to a customer over time or at a point in time. The assessment of
whether control transfers over time or at a point in time is critical to the timing of revenue recognition.

14.Accounts Receivable and Allowance for Credit Losses - Accounts
receivable as of December 31, 2024 and 2023, includes