Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 247

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 247
---
 Loan
Agreement, dated as of November 22, 2021, between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem
Five Cents”), as amended by the Commercial Loan Modification Agreement, dated as of February 12, 2024, between the Company and
Salem Five Cents (the “Loan Agreement”), and the Revolving Demand Line of Credit Note, dated November 22, 2021, by the Company
in favor of Salem Five Cents (the “Demand Note”). The Loan Agreement and the Demand Note provided for a secured revolving
loan facility in an aggregate principal amount of up to $7,000 (the “Revolving Line of Credit”). In discussions with
Salem Five Cents prior to the establishment of the factoring arrangement, Salem Five Cents indicated that it would terminate the Revolving
Line of Credit because of a policy which prohibited it from agreeing to subordination of its security interest in the Company’s
assets.

Accordingly, on September 9, 2024,
Salem Five Cents delivered a letter (the “Termination Letter”) to the Company that stated that, effective August 26, 2024
(the “Termination Date”), Salem Five Cents terminated all obligations under the Loan Agreement and the Demand Note. The Termination
Letter further stated that the Loan Agreement and the Demand Note and any related loan documents shall be considered no longer in force
or effect. The Company had no funds drawn on the Revolving Line of Credit on the Termination Date.

Operating Lease Agreement

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 $21 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.

26

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following management’s discussion
and analysis of financial condition and results of operations provides information that management believes is relevant