Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 52

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 including all of the equity of Gander Group Louisiana,
which became a wholly-owned subsidiary of Stran Loyalty Solutions.

In addition, Stran Loyalty Solutions entered into
a Release Agreement, dated as of August 23, 2024, between Gander Group and Stran Loyalty Solutions (the “Release Agreement”).
Under the Release Agreement, Gander Group granted a full and complete waiver and release of Stran Loyalty Solutions and its affiliates
of any non-competition, non-solicitation, or similar restrictive covenants of any parties owed to Gander Group or any of its affiliates.

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The Sale Agreement and the Release Agreement included
provisions for indemnification, reimbursement for returned items, handling of assets and liabilities during Gander Group’s wind-down,
and certain other matters.

Contractual Obligations

Property Leases

On January 10, 2025, the Company entered into
a seven-year lease agreement for new office space in North Quincy, Massachusetts. The Company’s existing lease agreement for its
office space expires May 31, 2025. The new lease term begins 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.

On November 26, 2024, the Company entered into
a lease for a 6,500-square foot office space in Irvine, California. The lease commenced on January 1, 2025 and is for a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 4% increase per year.

The following is a schedule by years of future
minimum lease payments (in thousands):

    Remainder of 2025 
     398 
  
    2026 
     440 
  
    2027 
     407 
  
    2028 
     65 
  
    Total future non-cancelable minimum lease payments 
    $1,310 

Lease costs for the three months ended March 31,
2025 and 2024 totaled approximately $0.2 million and $0.2 million, respectively. We anticipate
no deficiencies in our ability to make these