Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 313

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 313
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 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,
 2024  
    June 30,
 2023 

    (Restated) 
  
    Balance of allowance for credit losses, beginning of period 
    $(317) 
    $(264)
  
    Current period change for write-offs 
     167  
     59 
  
    Current period change for expected credit losses 
     (288) 
     (59)
  
    Balance of allowance for credit losses, end of period 
    $(438) 
    $(264)

Q.RELATED PARTY TRANSACTIONS:

Amount due from related party

  Name of Related Party  Relationship  Nature  June 30, 2024   December 31, 2023   Innovative Genetics, Inc.  Alejandro Tani, member of board of directors, the chairman of the Company’s Nominating and Corporate Governance Committee, and a member of the Compensation Committee and the Company’s Audit Committee, is the Chief Executive Officer, Chief Information Officer, and majority owner of Innovative Genetics.  Limited, non-exclusive, revocable license to use Innovative Genetics’s logos, trade names and