Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 240

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 240
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 lease for a 25,000 square foot office space and warehouse in Walpole, MA. The lease commenced on June 1, 2023 and is for a term
of 60 months from the commencement date. The lease included an escalation clause with annual increases of approximately 2% increase per
year. The Company associated lease right-of-use asset and lease liability is $720 as of March 31, 2024, based on the present value
of payments and an incremental borrowing rate of 4%. 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. 

21

The following schedule represents
the components of lease expense: 

    March 31,
    2024  
    March 31,
    2023 
  
    Lease cost 
       
    (Restated) 
  
    Operating lease cost 
    $172  
    $128 
  
    Total 
    $172  
    $128 

The following schedule represents maturities of operating
lease liabilities as of March 31, 2024: 

    Operating
    Minimum
    Lease
    Payments 
  
    Remainder of 2024 
    $444 
  
    2025 
     388 
  
    2026 
     189 
  
    2027 
     193 
  
    2028 
     67 
  
    Thereafter 
     — 
  
    Total payments 
     1,281 
  
    Less amount representing interest 
     (80)
  
    Present value of payments 
    $1,201 

The following schedule sets forth
supplemental cash flow information related to operating leases for the three months ended March 31, 2024 and 2023 : 

    March 31,
    2024  
    March 31,
    2023 
  
    Other information 
       
    (Restated) 
  
    Operating cash flows from operating lease 
    $19  
    $24 

The aggregate weighted average remaining
lease term was 3.04 years as of March 31, 2024. The aggregate weighted average discount rate was 3.38% as of March 31, 2024.

L.NOTE PAYABLE - LINE OF CREDIT:

The Company