Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 222

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 222
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 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. 

9

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.

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