Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 499

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1B
Chunk 499
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 lease included an escalation clause with annual increases of approximately 2.5% increase per year. The associated lease
right-of-use asset and lease liability is $135 as of December 31, 2024, based on the present value of payments and an incremental
borrowing rate of 2%. 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 February 1, 2023, the Company entered
into a lease for a 5,600 square foot office space in Tomball, TX. The lease commenced on February 1, 2023 and is for a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 2.3% increase per year. The
associated lease right-of-use asset and lease liability is $71 as of December 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.

F-24

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

On May 31, 2023, the Company entered
into a 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 associated lease right-of-use asset and lease liability is $592 as of December 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.

On March 9, 2021, the Company entered
into a lease for a 9,000 square foot office space in Irvine, CA. The lease commenced on April 1, 2021 and is for a term of 48