Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 32

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 market for similar borrowings.

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 Company associated lease right-of-use asset and lease liability is $720 as of June 30, 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. 

22

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The following schedule represents the
components of lease expense: 

    Three months ended
 June 30,  
    Six months ended
 June 30, 

    2024  
    2023  
    2024  
    2023 
  
    Lease cost 
       
    (Restated)  
       
    (Restated) 
  
    Operating lease cost 
    $154  
    $137  
    $326  
    $265 
  
    Total 
    $154  
    $137  
    $326  
    $265 

The following schedule represents maturities of operating
lease liabilities as of June 30, 2024: 

    Operating Minimum Lease Payments 
  
    Remainder of 2024 
    $287 
  
    2025 
     361 
  
    2026 
     189 
  
    2027 
     185 
  
    2028 
     65 
  
    Thereafter 
     — 
  
    Total payments 
     1,087 
  
    Less amount representing interest 
     (18)
  
    Present value of payments 
    $1,069 

The following schedule sets forth supplemental
cash flow information related to operating leases for the three and six months ended June 30, 2024 and 2023 : 

    Three months ended
 June 30,