Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 9

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
 would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities
based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    Level 3:
    Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The carrying value of certain financial
instruments, including cash and cash equivalents, accounts receivable, and accounts payable are carried at historical cost basis, which
approximates their fair values because of the short-term nature of these instruments.

8.Concentration of Credit Risk - Financial instruments that
potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable and deposits in excess of federally
insured limits. These risks are managed by performing ongoing credit evaluations of customers’ financial condition and by maintaining
all deposits in high quality financial institutions.

As of March 31, 2025 and December 31,
2024, the Company maintained deposits in four banks that exceeded the federal insured deposit limit of the Federal Deposit Insurance Corporation
(FDIC).

For the three months ended March 31,
2025, the Company had one major customer to which sales accounted for 16.5% of the Company’s revenues. The Company had accounts
receivable from this customer amounting to 10.5% of the total accounts receivable balance. The Company had an additional customer with
an accounts receivable balance amounting to 18.1% of the total accounts receivable balance as of March 31, 2025.

For
the three months ended March 31, 2024, the Company had one major customer to which sales accounted for approximately 20% of the Company’s
revenues. The Company had accounts receivable from this customer amounting to 10.6% of the total accounts receivable balance.

9.Revenue Recognition - The Company accounts for revenue under
ASC 606, Revenue for Contracts with Customers (“ASC 606”). Revenue is generated through various types of transactions,