Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 116

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 116
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5, based on the present value of payments and an incremental borrowing
rate of 6.7%. As the Company’s lease did not provide an implicit rate, the Company estimated the incremental borrowing rate based
on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings.

On January 10, 2025, the Company entered
into a seven-year lease agreement for new office space in North Quincy, Massachusetts. The new lease term commenced on June 1, 2025 and
expires on May 31, 2032 with an option to extend the lease an additional five years. The lease contains an initial base rent of approximately
$21 thousand per month with 2.2% - 2.5% annual escalations, plus a percentage of taxes and operating expenses incurred by the lessor in
connection with the ownership and management of the property. The Company recorded an initial right-of-use asset of $1.3 million and lease
liability of $1.5 million. The associated right-of-use asset and lease liability is $1,229 thousand and $1,477 thousand, respectively,
as of September 30, 2025, based on the present value of payments and an incremental borrowing rate of 6.5%.

The Company rents other office space
on terms of 12 months or less or on a month-to-month basis which are not included in the analysis above.

Operating lease expenses were approximately
$52 thousand and $176 thousand for the three months ended September 30, 2025 and 2024, respectively, and $613 thousand and $502 thousand
for the nine months ended September 30, 2025 and 2024, respectively, and were included in general and administrative expenses in the unaudited
condensed consolidated statements of operations.

21

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The following schedule represents maturities of operating
lease liabilities as of September 30, 2025: 

    Operating
Minimum 
Lease
 Payments 
  
    Remainder of 2025 
    $187 
  
    2026 
     702 
  
    2027 
     679 
  
    2028 
     335 
  
    2029 
     276 
  
    Thereafter 
     693