Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 10

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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 March 31, 2024 and December 31, 2023, includes allowance for credit losses of $425 and $317, respectively.

    March 31, 
2024  
    December 31,
 2023 
  
    Trade accounts receivable 
    $15,512  
    $17,393 
  
    Less: allowance for credit losses on accounts receivable 
     (425) 
     (317)
  
    Total accounts receivable, net 
    $15,087  
    $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 March 31, 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. Deferred taxes are provided for differences between the basis of assets and liabilities for financial statements and income tax purposes offset by a valuation allowance.

12.Stock-Based Compensation