Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 36

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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    Warrants 
     10,074,195  
     10,074,195 
  
    Stock options 
     921,834  
     588,396 

     10,996,029  
     10,662,591 

For the three and six months ended
June 30, 2024 and 2023, as a result of the net losses in these periods, all warrants and stock options have been excluded from the calculation
of diluted earnings per share and, therefore, there was no difference in the weighted average number of common shares for basic and diluted
loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive.

P.CREDIT LOSSES:

The Company is exposed to credit losses
primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed
using historical collection experience, current and future economic and market conditions and a review of the current status of customers’
trade accounts receivable. Customers are pooled based on sharing specific risk factors. Due to the short-term nature of such receivables,
the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. 

Customers are assessed for credit worthiness
upfront through a credit review, which includes 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 on
the Company’s balance sheets as of June 30, 2024 was $12,015, net of $438 of allowances. The following table
provides a roll-forward of the allowance for credit losses for the six months ending June 30, 2024 and 2023 that is deducted from the
amortized cost basis of accounts receivable to present the net amount expected to be collected:

    June 30,