Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1193

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 5
Chunk 1193
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 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 per share amounts)

The Company determines if an arrangement
is a lease at inception and classifies its leases at commencement. Operating leases are presented as right-of-use (“ROU”)
assets and the corresponding lease liabilities are included in operating lease liabilities, current and operating lease liabilities on
the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset, and lease
liabilities represent the Company’s obligation for lease payments in exchange for the ability to use the asset for the duration
of the lease term. The Company does not recognize short term leases that have a term of twelve months or less as ROU assets or lease liabilities.

ROU assets and lease liabilities are
recognized at commencement date and determined using the present value of the future minimum lease payments over the lease term. The Company
uses an incremental borrowing rate based on estimated rate