Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 245

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 245
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 the total accounts receivable balance. The Company had an additional customer with
an accounts receivable balance amounting to 18.1% of the total accounts receivable balance as of March 31, 2025.

For
the three months ended March 31, 2024, the Company had one major customer to which sales accounted for approximately 20% of the Company’s
revenues. The Company had accounts receivable from this customer amounting to 10.6% of the total accounts receivable balance.

9.Revenue Recognition - The Company accounts for revenue under
ASC 606, Revenue for Contracts with Customers (“ASC 606”). 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.

9

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

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