Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 11

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 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.

9.Accounts Receivable and Allowance for Credit Losses - Accounts receivable as of June 30, 2024 and December
31, 2023, includes allowance for credit losses of $438 and $317, respectively.

    June 30,
 2024  
    December 31,
 2023 
  
    Trade accounts receivable 
    $13,281  
    $17,393 
  
    Less: allowance for credit losses on accounts receivable 
     (438) 
     (317)
  
    Total accounts receivable, net 
    $12,843  
    $17,076 

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.

10.Uncertainty in Income Taxes - As of June 30, 2024 and December 31, 2023, the Company determined it had
uncertain tax positions of $2,448. The Company believes the impact will not be material as it will be able to utilize net operating losses
to offset a majority of the risk. The Company recorded a nominal amount of interest expense which is included as part of income tax expense.

11.Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes