Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 4

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part II, Item 8
Chunk 4
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 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.

10.Accounts Receivable and Allowance for Credit Losses - Accounts receivable as of September 30, 2024 and
December 31, 2023, includes allowance for credit losses of $360 and $317, respectively.

    September 30, 
2024  
    December 31, 
2023 
  
    Trade accounts receivable 
    $14,108  
    $16,540 
  
    Less: allowance for credit losses on accounts receivable 
     (360) 
     (317)
  
    Total accounts receivable, net 
    $13,748  
    $16,223 
  
    Accounts receivable - related party 
     1,092  
     853 
  
    Total accounts receivable from all sources 
    $14,840  
    $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 R, “Credit Losses,” to our financial statements included in this report for more information.

11.Goodwill and intangible