Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 288

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 288
---
 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 P, “Credit Losses,” to our financial statements included in this report for more information.

10.Uncertainty in Income Taxes - As of June 30, 2024 and December 31, 2023, the Company determined it had
uncertain tax positions of $2,448. The Company believes the impact will not be material as it will be able to utilize net operating losses
to offset a majority of the risk. The Company recorded a nominal amount of interest expense which is included as part of income tax expense.

11.Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial
statements and consist of taxes currently due plus deferred taxes. Deferred taxes are provided for differences between the basis of assets
and liabilities for financial statements and income tax purposes offset by a valuation allowance.

12.Stock-Based Compensation - The Company accounts for its stock-based awards in accordance with ASC 718,
Compensation - Stock Compensation. ASC 718 requires all stock-based payments to employees to be recognized in the consolidated statements
of operations based on their fair values. The Company uses the Black-Scholes option pricing model to determine the fair value of options
granted. The Company is recognizing compensation costs only for those stock-based awards expected to vest after considering expected forfeitures.
Cumulative compensation expense is at least equal to the compensation expense for vested awards. Stock-based compensation is recognized
on a straight-line basis over the service period of each award. The Company records compensation cost as an element of general and administrative
expense in the accompanying statements of operations.

13.Stock Option and Warrant Valuation - Stock option and warrant valuation models require the input of highly
subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with