Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 626

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 626
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 the timing of revenue recognition.

14.Accounts Receivable and Allowance for Credit Losses - Accounts
receivable as of December 31, 2024 and 2023, includes allowance for credit losses of $791 (inclusive of $327 for related party receivables)
and $317, respectively.

    December 31, 2024  
    December 31, 2023 
  
    Trade accounts receivable 
    $18,556  
    $16,540 
  
    Less: allowance for credit losses on accounts receivable 
     (464) 
     (317)
  
    Total accounts receivable, net 
    $18,092  
    $16,223 
  
    Accounts receivable - related party 
     900  
     853 
  
    Less: allowance for credit losses on accounts receivable - related party 
     (327) 
     — 
  
    Total accounts receivable - related party, net 
     573  
     853 
  
    Total accounts receivable from all sources 
    $18,665  
    $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 S, “Credit Losses,” to our financial statements included in this report for more information.

15.Freight - The Company includes freight charges as a component of cost of goods sold.

16.Leases - The Company’s lease arrangements relate primarily to office space. The Company’s
leases may include renewal options and rent escalation clauses. The Company is typically required to make fixed minimum rent payments
relating to its right to use an underlying leased asset.

F-12

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and