Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 799

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 2
Chunk 799
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 assessment based on the Company’s analysis of their financial statements when a
credit rating is not available. The Company evaluates contract terms and conditions, country and political risk, and may require
prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that
have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written
off as they are determined to be uncollectible after all collection efforts have been exhausted. Estimates of potential credit losses
are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information
that is reasonably available. 

The accounts receivable balance from
all sources on the Company’s balance sheets as of December 31, 2024 and 2023 was $18,665, net of $791 (inclusive of $327 for related party receivables) of allowances and $17,076,
net of $317 of allowances, respectively. The following table provides a roll-forward of the allowance for credit losses for the years
ended December 31, 2024 and 2023 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected
to be collected:

    December 31, 2024  
    December 31, 2023 
  
    Balance of allowance for credit losses, beginning of period 
    $(317) 
    $(264)
  
    Current period change for write-offs 
     64  
     121 
  
    Current period change for expected credit losses 
     (538) 
     (174)
  
    Balance of allowance for credit losses, end of period 
    $(791) 
    $(317)

T.RELATED PARTY TRANSACTIONS:

Amount due from related party

  Name of Related Party  Relationship  Nature  December 31, 2024   December 31, 2023   Innovative Genetics, Inc.  Alejandro Tani, member of board of directors, the chairman of the Company’s Nominating and Corporate Governance Committee, and a member of the Compensation Committee and the Company’s Audit Committee, is the Chief Executive Officer, Chief Information Officer, and majority owner of Innovative Genetics.  Limited, non-exclusive, revocable license to use Innovative Genetics’ logos, trade names and trademarks on apparel and promotional products as branded products for sale to Innovative Genetics and Innovative Genetics-authorized persons.  $573   $